MGIC Investment (NYSE:MTG) CEO Sells $3,596,500.22 in Stock

Key Points

• CEO Timothy Mattke sold 137,114 MGIC Investment shares for approximately $3.60 million at an average price of $26.23, reducing his direct stake by 13.98%. The sale was conducted under a pre-arranged Rule 10b5-1 trading plan.
• MGIC Investment recently reported quarterly EPS of $0.87, exceeding analyst expectations of $0.76, while revenue fell 2.9% year over year to $295.39 million.
• The company increased its quarterly dividend from $0.15 to $0.17 per share, equivalent to an annualized dividend of $0.68 and a 2.5% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $30.60.

MGIC Investment Corporation (NYSE:MTG - Get Free Report) CEO Timothy Mattke sold 137,114 shares of the company's stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $26.23, for a total transaction of $3,596,500.22. Following the sale, the chief executive officer directly owned 843,778 shares of the company's stock, valued at $22,132,296.94. The trade was a 13.98% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

MGIC Investment Stock Performance

Shares of NYSE:MTG traded up $0.49 during trading on Friday, hitting $26.86. The company's stock had a trading volume of 3,799,041 shares, compared to its average volume of 2,059,271. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.19 and a quick ratio of 1.19. The firm has a market cap of $5.51 billion, a price-to-earnings ratio of 8.40, a P/E/G ratio of 0.66 and a beta of 0.67. The company has a 50-day moving average of $30.22 and a 200-day moving average of $28.08. MGIC Investment Corporation has a 12 month low of $24.69 and a 12 month high of $31.89.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its earnings results on Wednesday, July 29th. The insurance provider reported $0.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.76 by $0.11. MGIC Investment had a net margin of 59.20% and a return on equity of 13.90%. The company had revenue of $295.39 million during the quarter, compared to analyst estimates of $297.54 million. During the same period in the previous year, the business posted $0.82 earnings per share. The firm's quarterly revenue was down 2.9% compared to the same quarter last year. On average, sell-side analysts expect that MGIC Investment Corporation will post 3.24 earnings per share for the current year.

MGIC Investment Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, August 20th. Investors of record on Wednesday, August 5th were issued a $0.17 dividend. The ex-dividend date of this dividend was Wednesday, August 5th. This represents a $0.68 dividend on an annualized basis and a yield of 2.5%. This is an increase from MGIC Investment's previous quarterly dividend of $0.15. MGIC Investment's payout ratio is 21.25%.

Institutional Trading of MGIC Investment

Several institutional investors have recently made changes to their positions in MTG. Versant Capital Management Inc lifted its holdings in MGIC Investment by 9.4% in the 3rd quarter. Versant Capital Management Inc now owns 5,917 shares of the insurance provider's stock worth $153,000 after purchasing an additional 508 shares in the last quarter. Sequoia Financial Advisors LLC raised its position in shares of MGIC Investment by 14.6% during the second quarter. Sequoia Financial Advisors LLC now owns 34,319 shares of the insurance provider's stock valued at $968,000 after buying an additional 4,381 shares during the last quarter. WINTON GROUP Ltd raised its position in shares of MGIC Investment by 317.3% during the second quarter. WINTON GROUP Ltd now owns 189,475 shares of the insurance provider's stock valued at $5,343,000 after buying an additional 144,073 shares during the last quarter. NewEdge Advisors LLC lifted its holdings in shares of MGIC Investment by 126.3% in the second quarter. NewEdge Advisors LLC now owns 319,592 shares of the insurance provider's stock worth $9,012,000 after buying an additional 178,381 shares in the last quarter. Finally, Baird Financial Group Inc. boosted its position in shares of MGIC Investment by 3.1% during the second quarter. Baird Financial Group Inc. now owns 13,092 shares of the insurance provider's stock worth $369,000 after acquiring an additional 392 shares during the last quarter. Hedge funds and other institutional investors own 95.58% of the company's stock.

Analysts Set New Price Targets

A number of analysts have commented on the company. Keefe, Bruyette & Woods upped their price target on MGIC Investment from $29.00 to $30.00 and gave the stock a "market perform" rating in a research report on Friday, July 31st. Royal Bank Of Canada increased their target price on shares of MGIC Investment from $28.00 to $32.00 and gave the stock a "sector perform" rating in a report on Friday, July 31st. BTIG Research started coverage on shares of MGIC Investment in a report on Tuesday, September 22nd. They set a "hold" rating on the stock. Zacks Research upgraded shares of MGIC Investment from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 25th. Finally, Roth Capital reissued a "buy" rating and issued a $35.00 price objective on shares of MGIC Investment in a research note on Thursday, July 30th. Two investment analysts have rated the stock with a Strong Buy rating, one has given a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $30.60.

MGIC Investment Company Profile

MGIC Investment Corporation is a holding company whose principal subsidiary, Mortgage Guaranty Insurance Corporation (MGIC), provides private mortgage insurance in the United States. Its insurance helps lenders manage credit risk on residential mortgage loans, particularly loans made to borrowers who provide down payments below traditional thresholds.

MGIC's products are primarily designed for lenders and other mortgage-finance participants, including primary mortgage insurance covering individual residential loans.

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