UBS Group AG Sells 263,459 Shares of MGIC Investment Corporation $MTG

Key Points

• UBS Group AG trimmed its stake in MGIC by 15.4%, selling 263,459 shares in Q4 and now holds 1,447,994 shares worth about $42.31 million (≈0.65% ownership).
• MGIC's board approved a $750 million share buyback (up to 12.4% of shares) and announced a quarterly dividend of $0.15 ($0.60 annualized, ~2.3% yield).
• Street sentiment is a consensus Hold with a $28.25 average target; MGIC beat Q1 EPS estimates ($0.76 vs. $0.73) but revenue fell ~3% YoY and the stock trades in the mid-$26s.

UBS Group AG lowered its holdings in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) by 15.4% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 1,447,994 shares of the insurance provider's stock after selling 263,459 shares during the quarter. UBS Group AG owned 0.65% of MGIC Investment worth $42,310,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of MTG. AQR Capital Management LLC grew its holdings in shares of MGIC Investment by 39.7% in the third quarter. AQR Capital Management LLC now owns 8,844,749 shares of the insurance provider's stock worth $250,926,000 after purchasing an additional 2,511,658 shares during the last quarter. Northern Trust Corp boosted its position in MGIC Investment by 10.7% in the 3rd quarter. Northern Trust Corp now owns 4,561,398 shares of the insurance provider's stock valued at $129,407,000 after buying an additional 441,809 shares during the period. Caisse de depot et placement du Quebec grew its stake in MGIC Investment by 20.4% in the 3rd quarter. Caisse de depot et placement du Quebec now owns 3,943,965 shares of the insurance provider's stock worth $111,890,000 after acquiring an additional 667,876 shares in the last quarter. Goldman Sachs Group Inc. increased its position in shares of MGIC Investment by 6.7% during the first quarter. Goldman Sachs Group Inc. now owns 3,103,366 shares of the insurance provider's stock worth $76,901,000 after acquiring an additional 195,895 shares during the period. Finally, American Century Companies Inc. increased its position in shares of MGIC Investment by 1.4% during the third quarter. American Century Companies Inc. now owns 3,081,319 shares of the insurance provider's stock worth $87,417,000 after acquiring an additional 41,766 shares during the period. Hedge funds and other institutional investors own 95.58% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on MTG. UBS Group lowered their price target on MGIC Investment from $29.50 to $28.00 and set a "neutral" rating for the company in a report on Thursday, March 12th. Weiss Ratings cut MGIC Investment from a "buy (a-)" rating to a "buy (b+)" rating in a report on Thursday, February 5th. Barclays dropped their price target on MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating on the stock in a research report on Friday, May 1st. Finally, Keefe, Bruyette & Woods lifted their price objective on MGIC Investment from $28.00 to $29.00 and gave the company a "market perform" rating in a report on Friday, April 10th. One research analyst has rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $28.25.

MGIC Investment Stock Performance

Shares of NYSE:MTG opened at $26.44 on Thursday. The firm has a 50 day moving average of $26.87 and a 200 day moving average of $27.48. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.13. The company has a market capitalization of $5.59 billion, a price-to-earnings ratio of 8.39, a price-to-earnings-growth ratio of 1.60 and a beta of 0.71. MGIC Investment Corporation has a 52 week low of $24.77 and a 52 week high of $29.97.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its earnings results on Wednesday, April 29th. The insurance provider reported $0.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.73 by $0.03. The business had revenue of $297.08 million for the quarter, compared to analysts' expectations of $303.12 million. MGIC Investment had a return on equity of 14.01% and a net margin of 59.63%.The business's revenue for the quarter was down 3.0% on a year-over-year basis. During the same quarter last year, the firm earned $0.75 EPS. On average, sell-side analysts predict that MGIC Investment Corporation will post 3.07 earnings per share for the current fiscal year.

MGIC Investment Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, May 21st. Shareholders of record on Wednesday, May 6th will be issued a $0.15 dividend. The ex-dividend date is Wednesday, May 6th. This represents a $0.60 dividend on an annualized basis and a yield of 2.3%. MGIC Investment's payout ratio is currently 19.05%.

MGIC Investment announced that its board has approved a stock buyback program on Thursday, April 23rd that authorizes the company to buyback $750.00 million in shares. This buyback authorization authorizes the insurance provider to purchase up to 12.4% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's management believes its stock is undervalued.

Insider Activity

In related news, CEO Timothy J. Mattke sold 139,202 shares of the business's stock in a transaction on Thursday, April 2nd. The stock was sold at an average price of $26.49, for a total transaction of $3,687,460.98. Following the transaction, the chief executive officer directly owned 1,118,005 shares in the company, valued at $29,615,952.45. The trade was a 11.07% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Salvatore A. Miosi sold 10,931 shares of the stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $26.25, for a total value of $286,938.75. Following the completion of the sale, the chief operating officer owned 590,951 shares of the company's stock, valued at approximately $15,512,463.75. This trade represents a 1.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 170,133 shares of company stock worth $4,524,600. Corporate insiders own 1.34% of the company's stock.

About MGIC Investment

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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