Y Intercept Hong Kong Ltd Acquires Shares of 38,675 MGIC Investment Corporation (NYSE:MTG)

Key Points

• Y Intercept Hong Kong Ltd acquired 38,675 shares of MGIC Investment Corporation valued at approximately $958,000 during the first quarter.
• MGIC Investment announced a $750 million stock buyback program, indicating confidence in its share valuation.
• The company plans to pay a quarterly dividend of $0.15 on August 21st, raising its annualized dividend to $0.60 with a dividend yield of 2.34%.

Y Intercept Hong Kong Ltd acquired a new stake in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm acquired 38,675 shares of the insurance provider's stock, valued at approximately $958,000.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in MTG. Norges Bank acquired a new position in MGIC Investment during the fourth quarter valued at approximately $85,908,000. First Trust Advisors LP grew its holdings in MGIC Investment by 22.4% during the fourth quarter. First Trust Advisors LP now owns 16,008,489 shares of the insurance provider's stock valued at $379,561,000 after purchasing an additional 2,928,595 shares during the last quarter. Caisse DE Depot ET Placement DU Quebec grew its holdings 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 purchasing an additional 1,543,908 shares during the last quarter. BNP Paribas Financial Markets grew 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 valued at $26,209,000 after purchasing an additional 797,852 shares during the last quarter. Finally, Invesco Ltd. grew its holdings in MGIC Investment by 16.6% during the fourth quarter. Invesco Ltd. now owns 4,766,195 shares of the insurance provider's stock valued at $113,006,000 after purchasing an additional 677,227 shares during the last quarter. Institutional investors own 95.58% of the company's stock.

Insiders Place Their Bets

In other MGIC Investment news, EVP Paula C. Maggio sold 20,000 shares of MGIC Investment 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 sale, the executive vice president owned 157,395 shares in the company, valued at $4,169,393.55. The trade was a 11.27% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 1.41% of the stock is owned by corporate insiders.

MGIC Investment Stock Performance

Shares of MGIC Investment stock traded up $0.29 during midday trading on Tuesday, hitting $25.83. The company had a trading volume of 351,086 shares, compared to its average volume of 2,176,249. The business's 50 day simple moving average is $26.53 and its two-hundred day simple moving average is $25.21. The stock has a market cap of $6.13 billion, a PE ratio of 8.58, a P/E/G ratio of 2.75 and a beta of 0.89. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.25 and a quick ratio of 1.25. MGIC Investment Corporation has a 1-year low of $21.94 and a 1-year high of $28.67.

MGIC Investment (NYSE:MTG - Get Free Report) last announced 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 business had revenue of $306.23 million for the quarter, compared to the consensus estimate of $306.66 million. MGIC Investment had a net margin of 63.49% and a return on equity of 14.96%. MGIC Investment's quarterly revenue was up 4.0% on a year-over-year basis. During the same quarter last year, the company posted $0.65 earnings per share. As a group, equities analysts predict that MGIC Investment Corporation will post 2.71 EPS for the current fiscal year.

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

MGIC Investment Increases Dividend

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

Wall Street Analyst Weigh In

Several equities analysts have commented on the company. Compass Point reiterated a "neutral" rating and set a $28.00 price target (up previously from $27.00) on shares of MGIC Investment in a report on Friday, May 23rd. Keefe, Bruyette & Woods increased their price target on MGIC Investment from $26.00 to $27.00 and gave the company a "market perform" rating in a report on Monday, July 7th. Finally, Barclays increased 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 equities research analyst has rated the stock with a sell rating, five have issued a hold rating and two have given a buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $26.88.

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.