Universal Beteiligungs und Servicegesellschaft mbH Grows Position in MGIC Investment Corporation (NYSE:MTG)

Key Points

• Universal Beteiligungs und Servicegesellschaft mbH increased its stake in MGIC Investment Corporation by 12.1%, now owning about 0.20% of the company worth $11.66 million.
• Analysts have raised price targets for MGIC Investment, with Barclays setting a new target of $27.00 while maintaining an "equal weight" rating.
• MGIC Investment recently declared a quarterly dividend of $0.15 per share and initiated a $750 million share buyback program, indicating the board's belief that shares are undervalued.

Universal Beteiligungs und Servicegesellschaft mbH grew its holdings in MGIC Investment Corporation (NYSE:MTG - Free Report) by 12.1% during the first quarter, according to the company in its most recent filing with the SEC. The fund owned 470,527 shares of the insurance provider's stock after acquiring an additional 50,938 shares during the quarter. Universal Beteiligungs und Servicegesellschaft mbH owned about 0.20% of MGIC Investment worth $11,660,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently added to or reduced their stakes in the company. Signaturefd LLC grew its stake in MGIC Investment by 1.9% during the 1st quarter. Signaturefd LLC now owns 22,112 shares of the insurance provider's stock worth $548,000 after buying an additional 421 shares during the last quarter. Fifth Third Bancorp grew its stake in MGIC Investment by 20.1% during the 1st quarter. Fifth Third Bancorp now owns 2,749 shares of the insurance provider's stock worth $68,000 after buying an additional 461 shares during the last quarter. NorthCrest Asset Manangement LLC grew its stake in MGIC Investment by 1.3% during the 1st quarter. NorthCrest Asset Manangement LLC now owns 41,718 shares of the insurance provider's stock worth $1,034,000 after buying an additional 524 shares during the last quarter. ProShare Advisors LLC grew its stake in MGIC Investment by 4.9% during the 4th quarter. ProShare Advisors LLC now owns 11,854 shares of the insurance provider's stock worth $281,000 after buying an additional 553 shares during the last quarter. Finally, Janney Montgomery Scott LLC grew its stake in MGIC Investment by 1.5% during the 1st quarter. Janney Montgomery Scott LLC now owns 40,985 shares of the insurance provider's stock worth $1,016,000 after buying an additional 587 shares during the last quarter. Hedge funds and other institutional investors own 95.58% of the company's stock.

MGIC Investment Price Performance

MTG stock traded up $0.29 during midday trading on Tuesday, hitting $25.83. 351,086 shares of the stock were exchanged, compared to its average volume of 2,176,249. The stock's 50-day moving average price is $26.53 and its 200-day moving average price is $25.21. The stock has a market cap of $6.13 billion, a price-to-earnings ratio of 8.58, a PEG ratio of 2.75 and a beta of 0.89. MGIC Investment Corporation has a fifty-two week low of $21.94 and a fifty-two week high of $28.67. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.25 and a current ratio of 1.25.

MGIC Investment (NYSE:MTG - Get Free Report) last issued its quarterly earnings data on Wednesday, April 30th. The insurance provider reported $0.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.66 by $0.09. The firm had revenue of $306.23 million during the quarter, compared to analysts' expectations of $306.66 million. MGIC Investment had a return on equity of 14.96% and a net margin of 63.49%. MGIC Investment's revenue was up 4.0% on a year-over-year basis. During the same period in the previous year, the firm posted $0.65 earnings per share. Research analysts predict that MGIC Investment Corporation will post 2.71 earnings per share for the current year.

MGIC Investment Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 21st. Investors of record on Thursday, August 7th will be issued a dividend of $0.15 per share. The ex-dividend date is Thursday, August 7th. This is a boost from MGIC Investment's previous quarterly dividend of $0.13. This represents a $0.60 annualized dividend and a yield of 2.32%. MGIC Investment's payout ratio is currently 17.28%.

MGIC Investment declared that its board has authorized a stock repurchase program on Thursday, April 24th that authorizes the company to buyback $750.00 million in shares. This buyback authorization authorizes the insurance provider to reacquire up to 12.5% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board believes its stock is undervalued.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. Compass Point reaffirmed a "neutral" rating and set a $28.00 price objective (up from $27.00) on shares of MGIC Investment in a research report on Friday, May 23rd. Keefe, Bruyette & Woods increased their price objective on MGIC Investment from $26.00 to $27.00 and gave the stock a "market perform" rating in a research report on Monday, July 7th. Finally, Barclays raised their price target on MGIC Investment from $26.00 to $27.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. One analyst has rated the stock with a sell rating, five have given a hold rating and two have assigned a buy rating to the company's stock. According to data from MarketBeat.com, MGIC Investment has a consensus rating of "Hold" and an average price target of $26.88.

Insider Transactions at MGIC Investment

In other MGIC Investment news, EVP Paula C. Maggio sold 20,000 shares of the firm's stock in a transaction on Friday, May 30th. The stock was sold at an average price of $26.49, for a total transaction of $529,800.00. Following the completion of the transaction, the executive vice president owned 157,395 shares of the company's stock, valued at approximately $4,169,393.55. This trade represents a 11.27% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 1.41% of the company's stock.

MGIC Investment Company Profile

MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government sponsored entities in the United States, the District of Columbia, Puerto Rico, and Guam. The company offers primary mortgage insurance that provides mortgage default protection on individual loans, as well as covers unpaid loan principal, delinquent interest, and various expenses associated with the default and subsequent foreclosure.