Wellington Management Group LLP Sells 1,296,110 Shares of MGIC Investment Corporation $MTG

Key Points

• Wellington Management Group LLP reduced its stake in MGIC Investment Corporation by 25.7%, owning approximately $92.98 million worth of shares after selling over 1.29 million shares in the first quarter.
• MGIC Investment reported an EPS of $0.82 for the last quarter, exceeding analysts' expectations of $0.70, although revenue saw a slight decline of 0.3% year-over-year.
• The company has initiated a $750 million stock buyback plan, indicating management's belief that its stock is undervalued, and has also increased its quarterly dividend from $0.13 to $0.15 per share.

Wellington Management Group LLP lessened its position in MGIC Investment Corporation (NYSE:MTG - Free Report) by 25.7% during the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 3,752,148 shares of the insurance provider's stock after selling 1,296,110 shares during the period. Wellington Management Group LLP owned about 1.58% of MGIC Investment worth $92,978,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Cullen Frost Bankers Inc. bought a new position in shares of MGIC Investment in the first quarter worth approximately $33,000. Golden State Wealth Management LLC lifted its stake in shares of MGIC Investment by 7,837.0% in the first quarter. Golden State Wealth Management LLC now owns 2,143 shares of the insurance provider's stock worth $53,000 after buying an additional 2,116 shares in the last quarter. Headlands Technologies LLC lifted its stake in shares of MGIC Investment by 619.2% in the first quarter. Headlands Technologies LLC now owns 2,280 shares of the insurance provider's stock worth $56,000 after buying an additional 1,963 shares in the last quarter. UMB Bank n.a. lifted its stake in shares of MGIC Investment by 61.3% in the first quarter. UMB Bank n.a. now owns 2,660 shares of the insurance provider's stock worth $66,000 after buying an additional 1,011 shares in the last quarter. Finally, Fifth Third Bancorp boosted its holdings in MGIC Investment by 20.1% in the first quarter. Fifth Third Bancorp now owns 2,749 shares of the insurance provider's stock worth $68,000 after purchasing an additional 461 shares during the last quarter. Institutional investors own 95.58% of the company's stock.

Insider Activity at MGIC Investment

In related news, EVP Paula C. Maggio sold 20,000 shares of the firm'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 completion of the transaction, the executive vice president directly 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 legal filing with the SEC, which is accessible through this link. Also, CEO Timothy J. Mattke sold 139,203 shares of the firm's stock in a transaction on Thursday, August 7th. The shares were sold at an average price of $26.54, for a total transaction of $3,694,447.62. Following the transaction, the chief executive officer directly owned 1,100,994 shares of the company's stock, valued at $29,220,380.76. The trade was a 11.22% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 189,203 shares of company stock valued at $5,010,848. Corporate insiders own 1.41% of the company's stock.

MGIC Investment Stock Performance

MTG traded up $0.15 during trading on Wednesday, hitting $28.00. The company's stock had a trading volume of 215,923 shares, compared to its average volume of 2,151,199. 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 one year low of $21.94 and a one year high of $28.67. The firm has a market cap of $6.45 billion, a PE ratio of 9.19, a P/E/G ratio of 2.02 and a beta of 0.90. The business's 50 day simple moving average is $26.84 and its 200-day simple moving average is $25.54.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The insurance provider reported $0.82 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.70 by $0.12. The firm had revenue of $304.25 million during the quarter, compared to analysts' expectations of $306.25 million. MGIC Investment had a net margin of 62.58% and a return on equity of 14.73%. The company's revenue for the quarter was down .3% compared to the same quarter last year. During the same period in the prior year, the company posted $0.77 earnings per share. As a group, sell-side analysts predict that MGIC Investment Corporation will post 2.71 EPS for the current fiscal year.

MGIC Investment Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, August 21st. Investors of record on Thursday, August 7th were paid a dividend of $0.15 per share. The ex-dividend date of this dividend was Thursday, August 7th. This is a positive change from MGIC Investment's previous quarterly dividend of $0.13. This represents a $0.60 annualized dividend and a yield of 2.1%. MGIC Investment's dividend payout ratio is 19.67%.

Analyst Ratings Changes

MTG has been the topic of several research reports. Barclays raised their target price on shares of MGIC Investment from $26.00 to $27.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 8th. Compass Point restated a "neutral" rating and issued a $28.00 target price (up previously from $27.00) on shares of MGIC Investment in a report on Friday, May 23rd. Finally, Keefe, Bruyette & Woods raised their target price on shares of MGIC Investment from $26.00 to $27.00 and gave the stock a "market perform" rating in a report on Monday, July 7th. Five equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus price target of $26.67.

MGIC Investment 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.