Timothy J. Mattke Sells 139,203 Shares of MGIC Investment Corporation (NYSE:MTG) Stock

Key Points

• MGIC Investment Corporation's CEO, Timothy J. Mattke, sold 139,203 shares at an average price of $26.54, resulting in a total transaction of approximately $3.69 million, reducing his ownership by 11.22%.
• The company recently announced a quarterly dividend of $0.15 per share, reflecting a positive change from the previous dividend of $0.13, with an annualized yield of 2.2%.
• MGIC Investment's Board has approved a $750 million share repurchase plan, indicating management's belief that its stock is undervalued.

MGIC Investment Corporation (NYSE:MTG - Get Free Report) CEO Timothy J. Mattke sold 139,203 shares of the stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $26.54, for a total value of $3,694,447.62. Following the completion of the transaction, the chief executive officer owned 1,100,994 shares in the company, valued at approximately $29,220,380.76. The trade was a 11.22% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link.

MGIC Investment Trading Down 0.4%

Shares of MGIC Investment stock traded down $0.12 on Wednesday, hitting $27.40. 369,060 shares of the company traded hands, compared to its average volume of 2,178,210. The company has a market cap of $6.32 billion, a PE ratio of 8.98, a PEG ratio of 2.00 and a beta of 0.90. MGIC Investment Corporation has a 52 week low of $21.94 and a 52 week high of $28.67. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.13. The stock's 50 day moving average price is $26.59 and its 200-day moving average price is $25.38.

MGIC Investment (NYSE:MTG - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The insurance provider reported $0.82 earnings per share for the quarter, topping the consensus estimate of $0.70 by $0.12. MGIC Investment had a net margin of 62.58% and a return on equity of 14.73%. The firm had revenue of $304.25 million during the quarter, compared to the consensus estimate of $306.25 million. During the same quarter in the prior year, the firm earned $0.77 EPS. The company's revenue for the quarter was down .3% on a year-over-year basis. Equities research analysts predict that MGIC Investment Corporation will post 2.71 EPS 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 $0.15 dividend. This is a boost from MGIC Investment's previous quarterly dividend of $0.13. The ex-dividend date of this dividend is Thursday, August 7th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.2%. MGIC Investment's dividend payout ratio is 19.67%.

MGIC Investment declared that its board has authorized a stock buyback plan on Thursday, April 24th that allows the company to buyback $750.00 million in shares. This buyback authorization allows the insurance provider to buy up to 12.5% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.

Institutional Trading of MGIC Investment

Hedge funds have recently made changes to their positions in the stock. True Wealth Design LLC lifted its holdings in MGIC Investment by 262.5% during the 2nd quarter. True Wealth Design LLC now owns 1,004 shares of the insurance provider's stock valued at $28,000 after purchasing an additional 727 shares during the last quarter. WPG Advisers LLC purchased a new position in MGIC Investment during the 1st quarter valued at about $26,000. Hantz Financial Services Inc. boosted its position in shares of MGIC Investment by 3,067.6% during the 2nd quarter. Hantz Financial Services Inc. now owns 1,077 shares of the insurance provider's stock valued at $30,000 after acquiring an additional 1,043 shares during the last quarter. Employees Retirement System of Texas purchased a new position in MGIC Investment in the 2nd quarter worth approximately $32,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in MGIC Investment by 118.0% in the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 1,308 shares of the insurance provider's stock worth $36,000 after purchasing an additional 708 shares during the period. 95.58% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. Keefe, Bruyette & Woods raised their target price on MGIC Investment from $26.00 to $27.00 and gave the stock a "market perform" rating in a report on Monday, July 7th. Compass Point reissued a "neutral" rating and set a $28.00 price target (up from $27.00) on shares of MGIC Investment in a report on Friday, May 23rd. 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 and five have assigned a hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $26.67.

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.