Insider Selling: MGIC Investment Corporation (NYSE:MTG) COO Sells 30,000 Shares of Stock

Key Points

• Salvatore A. Miosi, COO of MGIC Investment Corporation, sold 30,000 shares at an average price of $26.22, resulting in a transaction worth $786,600 and a 10.74% decrease in his stock ownership.
• MGIC Investment recently declared a quarterly dividend of $0.15 per share, raising it from the previous $0.13, reflecting a 2.2% yield for shareholders.
• The company initiated a $750 million stock buyback program, allowing it to repurchase up to 12.5% of its outstanding shares, signaling management's belief that the stock is undervalued.

MGIC Investment Corporation (NYSE:MTG - Get Free Report) COO Salvatore A. Miosi sold 30,000 shares of MGIC Investment stock in a transaction on Friday, August 1st. The stock was sold at an average price of $26.22, for a total transaction of $786,600.00. Following the sale, the chief operating officer directly owned 249,401 shares of the company's stock, valued at approximately $6,539,294.22. This trade represents a 10.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website.

MGIC Investment Stock Performance

NYSE MTG traded up $0.42 during trading on Monday, reaching $26.70. The company's stock had a trading volume of 1,928,099 shares, compared to its average volume of 2,197,311. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.46 and a current ratio of 1.46. The firm has a market cap of $6.16 billion, a price-to-earnings ratio of 8.75, a P/E/G ratio of 1.95 and a beta of 0.90. MGIC Investment Corporation has a twelve month low of $21.94 and a twelve month high of $28.67. The business's fifty day moving average price is $26.50 and its 200-day moving average price is $25.27.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its quarterly earnings data 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 company had revenue of $304.25 million during the quarter, compared to the consensus estimate of $306.25 million. MGIC Investment had a net margin of 62.58% and a return on equity of 14.73%. MGIC Investment's quarterly revenue was down .3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.77 EPS. As a group, analysts anticipate that MGIC Investment Corporation will post 2.71 EPS for the current fiscal year.

MGIC Investment declared that its board has initiated a stock 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 generally a sign that the company's management believes its stock is undervalued.

MGIC Investment Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 21st. Shareholders of record on Thursday, August 7th will be given a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 2.2%. The ex-dividend date is Thursday, August 7th. This is a positive change from MGIC Investment's previous quarterly dividend of $0.13. MGIC Investment's payout ratio is presently 17.05%.

Hedge Funds Weigh In On MGIC Investment

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. WPG Advisers LLC acquired a new position in MGIC Investment during the 1st quarter worth approximately $26,000. Hantz Financial Services Inc. grew its position in MGIC Investment by 3,067.6% during the second quarter. Hantz Financial Services Inc. now owns 1,077 shares of the insurance provider's stock worth $30,000 after buying an additional 1,043 shares during the period. Cullen Frost Bankers Inc. acquired a new position in MGIC Investment during the first quarter worth about $33,000. Quarry LP acquired a new position in MGIC Investment during the first quarter worth about $38,000. Finally, Geneos Wealth Management Inc. grew its position in MGIC Investment by 88.0% during the first quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider's stock worth $43,000 after buying an additional 817 shares during the period. Institutional investors and hedge funds own 95.58% of the company's stock.

Analysts Set New Price Targets

Several research firms have recently issued reports on MTG. Compass Point reaffirmed a "neutral" rating and set a $28.00 price objective (up from $27.00) on shares of MGIC Investment in a research report on Friday, May 23rd. Keefe, Bruyette & Woods lifted their price objective on shares of MGIC Investment from $26.00 to $27.00 and gave the stock a "market perform" rating in a research report on Monday, July 7th. Finally, Barclays boosted their price target on shares of MGIC Investment from $26.00 to $27.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 8th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and one has given a buy rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $26.43.

MGIC Investment Company 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.

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