Versor Investments LP Acquires 49,700 Shares of MGIC Investment Corporation $MTG

Key Points

• Versor Investments LP increased its stake in MGIC Investment Corporation by 158.3%, now owning 81,100 shares valued at approximately $2.01 million.
• CEO Timothy J. Mattke sold 139,203 shares of MGIC Investment, resulting in an 11.22% decrease in his holdings, which now total approximately $29.22 million.
• MGIC Investment has announced a buyback program allowing repurchase of up to $750 million in shares and has increased its quarterly dividend from $0.13 to $0.15 per share.

Versor Investments LP boosted its holdings in MGIC Investment Corporation (NYSE:MTG - Free Report) by 158.3% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 81,100 shares of the insurance provider's stock after purchasing an additional 49,700 shares during the quarter. Versor Investments LP's holdings in MGIC Investment were worth $2,010,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently modified their holdings of the company. First Trust Advisors LP grew its position in MGIC Investment by 22.4% in the 4th quarter. First Trust Advisors LP now owns 16,008,489 shares of the insurance provider's stock worth $379,561,000 after purchasing an additional 2,928,595 shares in the last quarter. Caisse DE Depot ET Placement DU Quebec grew its position in MGIC Investment by 292.0% during the fourth quarter. Caisse DE Depot ET Placement DU Quebec now owns 2,072,629 shares of the insurance provider's stock valued at $49,142,000 after buying an additional 1,543,908 shares during the period. BNP Paribas Financial Markets increased its holdings in MGIC Investment by 259.4% during the fourth quarter. BNP Paribas Financial Markets now owns 1,105,399 shares of the insurance provider's stock worth $26,209,000 after buying an additional 797,852 shares during the last quarter. JPMorgan Chase & Co. increased its holdings in MGIC Investment by 4.8% during the first quarter. JPMorgan Chase & Co. now owns 16,162,180 shares of the insurance provider's stock worth $400,499,000 after buying an additional 743,212 shares during the last quarter. Finally, Citigroup Inc. raised its position in MGIC Investment by 259.1% in the first quarter. Citigroup Inc. now owns 902,982 shares of the insurance provider's stock worth $22,376,000 after acquiring an additional 651,549 shares during the period. 95.58% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

MTG has been the subject of several research reports. Keefe, Bruyette & Woods increased their price objective on MGIC Investment from $26.00 to $27.00 and gave the company a "market perform" rating in a report on Monday, July 7th. Barclays upped their price objective on shares of MGIC Investment from $26.00 to $27.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. Finally, Compass Point reaffirmed a "neutral" rating and issued a $28.00 price target (up from $27.00) on shares of MGIC Investment in a report on Friday, May 23rd. Five investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, MGIC Investment currently has a consensus rating of "Reduce" and an average target price of $26.67.

Insider Activity at MGIC Investment

In related news, COO Salvatore A. Miosi sold 30,000 shares of the firm's stock in a transaction on Friday, August 1st. The stock was sold at an average price of $26.22, for a total value of $786,600.00. Following the completion of the sale, the chief operating officer owned 249,401 shares of the company's stock, valued at $6,539,294.22. This trade represents a 10.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Paula C. Maggio sold 20,000 shares of the business's stock in a transaction on Friday, May 30th. The shares were sold at an average price of $26.49, for a total transaction of $529,800.00. Following the transaction, the executive vice president directly owned 157,395 shares in the company, valued at approximately $4,169,393.55. The trade was a 11.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 189,203 shares of company stock worth $5,010,848 over the last quarter. 1.41% of the stock is owned by corporate insiders.

MGIC Investment Price Performance

Shares of MGIC Investment stock traded up $0.0350 during trading on Wednesday, hitting $27.4950. 2,069,863 shares of the stock traded hands, compared to its average volume of 2,182,135. The stock has a market cap of $6.34 billion, a price-to-earnings ratio of 9.01, a PEG ratio of 2.00 and a beta of 0.90. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.13. MGIC Investment Corporation has a 52 week low of $21.94 and a 52 week high of $28.67. The firm's fifty day moving average is $26.75 and its 200-day moving average is $25.47.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The insurance provider reported $0.82 EPS for the quarter, topping analysts' consensus estimates of $0.70 by $0.12. The business had revenue of $304.25 million for the quarter, compared to analysts' expectations of $306.25 million. MGIC Investment had a return on equity of 14.73% and a net margin of 62.58%.The business's quarterly revenue was down .3% on a year-over-year basis. During the same period in the previous year, the firm earned $0.77 EPS. Research analysts expect that MGIC Investment Corporation will post 2.71 EPS for the current fiscal year.

MGIC Investment Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 21st. Stockholders of record on Thursday, August 7th will be given a $0.15 dividend. The ex-dividend date is Thursday, August 7th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.2%. This is an increase from MGIC Investment's previous quarterly dividend of $0.13. MGIC Investment's dividend payout ratio is 19.67%.

MGIC Investment announced that its board has authorized a stock buyback plan on Thursday, April 24th that permits the company to buyback $750.00 million in outstanding shares. This buyback authorization permits the insurance provider to purchase up to 12.5% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

About MGIC Investment

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.