The Manufacturers Life Insurance Company Acquires Shares of 148,625 MGIC Investment Corporation $MTG

Key Points

• The Manufacturers Life Insurance Company acquired 148,625 MGIC Investment shares worth approximately $4.19 million, while institutional investors and hedge funds collectively own 95.58% of the stock.
• MGIC Investment reported quarterly earnings of $0.87 per share, exceeding the $0.76 analyst consensus, though revenue fell 2.9% year over year to $295.39 million.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $30.60. The company also raised its quarterly dividend to $0.17 per share, producing a 2.2% annualized yield.

The Manufacturers Life Insurance Company acquired a new stake in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 148,625 shares of the insurance provider's stock, valued at approximately $4,191,000. The Manufacturers Life Insurance Company owned approximately 0.07% of MGIC Investment as of its most recent SEC filing.

Other institutional investors also recently modified their holdings of the company. Sanctuary Advisors LLC bought a new position in shares of MGIC Investment in the 2nd quarter worth $337,000. Connor Clark & Lunn Investment Management Ltd. bought a new stake in MGIC Investment during the 2nd quarter valued at $16,347,000. Quantbot Technologies LP bought a new stake in MGIC Investment during the 2nd quarter valued at $976,000. Evolve Private Wealth LLC bought a new stake in MGIC Investment during the 2nd quarter valued at $2,928,000. Finally, EP Wealth Advisors LLC acquired a new position in MGIC Investment during the second quarter worth $784,000. 95.58% of the stock is owned by institutional investors and hedge funds.

Insider Activity at MGIC Investment

In other news, COO Salvatore A. Miosi sold 30,000 shares of the business's stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $25.38, for a total value of $761,400.00. Following the transaction, the chief operating officer owned 560,951 shares in the company, valued at $14,236,936.38. The trade was a 5.08% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paula C. Maggio sold 20,000 shares of the company's stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $30.30, for a total value of $606,000.00. Following the completion of the transaction, the executive vice president directly owned 149,620 shares of the company's stock, valued at approximately $4,533,486. This represents a 11.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.34% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

MTG has been the subject of a number of analyst reports. Zacks Research upgraded shares of MGIC Investment from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 25th. Weiss Ratings raised shares of MGIC Investment from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Wednesday, August 19th. Royal Bank Of Canada lifted their price target on MGIC Investment from $28.00 to $32.00 and gave the company a "sector perform" rating in a research note on Friday, July 31st. Roth Capital reissued a "buy" rating and set a $35.00 price objective on shares of MGIC Investment in a report on Thursday, July 30th. Finally, Keefe, Bruyette & Woods increased their price objective on MGIC Investment from $29.00 to $30.00 and gave the stock a "market perform" rating in a research note on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, MGIC Investment presently has a consensus rating of "Moderate Buy" and a consensus price target of $30.60.

MGIC Investment Stock Performance

NYSE MTG opened at $30.67 on Wednesday. MGIC Investment Corporation has a 1 year low of $24.69 and a 1 year high of $31.89. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.19 and a quick ratio of 1.19. The firm has a market cap of $6.29 billion, a price-to-earnings ratio of 9.58, a PEG ratio of 0.78 and a beta of 0.65. The company has a fifty day moving average price of $29.68 and a 200-day moving average price of $27.60.

MGIC Investment (NYSE:MTG - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The insurance provider reported $0.87 earnings per share for the quarter, beating analysts' consensus estimates of $0.76 by $0.11. MGIC Investment had a net margin of 59.20% and a return on equity of 13.90%. The company had revenue of $295.39 million for the quarter, compared to analyst estimates of $297.54 million. During the same period last year, the firm earned $0.82 earnings per share. The firm's revenue was down 2.9% on a year-over-year basis. As a group, equities research analysts predict that MGIC Investment Corporation will post 3.24 EPS for the current fiscal year.

MGIC Investment Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 20th. Shareholders of record on Wednesday, August 5th were given a dividend of $0.17 per share. The ex-dividend date of this dividend was Wednesday, August 5th. This represents a $0.68 annualized dividend and a dividend yield of 2.2%. This is an increase from MGIC Investment's previous quarterly dividend of $0.15. MGIC Investment's payout ratio is 21.25%.

MGIC Investment Company Profile

MGIC Investment Corporation NYSE: MTG is a leading provider of private mortgage insurance in the United States. Established in 1957 as the nation's first private mortgage insurer, MGIC helps lenders manage credit risk and facilitates homeownership by protecting mortgage loans against default. Headquartered in Milwaukee, Wisconsin, the company operates through its principal subsidiary, Mortgage Guaranty Insurance Corporation, and maintains relationships with a broad network of originators and servicers nationwide.

The company's primary business activity involves issuing mortgage insurance policies that enable borrowers to purchase homes with down payments below traditional lending thresholds.

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