Salvatore A. Miosi Sells 30,000 Shares of MGIC Investment Corporation (NYSE:MTG) 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 shares were sold at an average price of $26.22, for a total transaction of $786,600.00. Following the completion of the transaction, the chief operating officer owned 249,401 shares in the company, 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 Securities & Exchange Commission, which is available through this link.

MGIC Investment Trading Up 3.0%

MTG traded up $0.80 during midday trading on Friday, hitting $27.26. 659,681 shares of the company were exchanged, compared to its average volume of 2,182,489. MGIC Investment Corporation has a 1-year low of $21.94 and a 1-year high of $28.67. The firm has a market capitalization of $6.28 billion, a P/E ratio of 8.94, a P/E/G ratio of 1.98 and a beta of 0.90. The firm's 50 day moving average price is $26.53 and its 200-day moving average price is $25.32. 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 (NYSE:MTG - Get Free Report) last issued 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. MGIC Investment had a return on equity of 14.73% and a net margin of 62.58%. The firm had revenue of $304.25 million during the quarter, compared to analyst estimates of $306.25 million. During the same period in the previous year, the company posted $0.77 EPS. The company's revenue for the quarter was down .3% on a year-over-year basis. As a group, equities analysts forecast that MGIC Investment Corporation will post 2.71 EPS for the current fiscal year.

MGIC Investment Increases Dividend

The company also recently declared 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. The ex-dividend date is Thursday, August 7th. This is a positive change from MGIC Investment's previous quarterly dividend of $0.13. This represents a $0.60 dividend on an annualized basis and a yield of 2.2%. MGIC Investment's dividend payout ratio (DPR) is 19.67%.

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

Institutional Trading of MGIC Investment

Several large investors have recently modified their holdings of MTG. KBC Group NV grew its position in MGIC Investment by 10.2% during the first quarter. KBC Group NV now owns 11,417 shares of the insurance provider's stock valued at $283,000 after buying an additional 1,060 shares during the period. Cerity Partners LLC boosted its holdings in shares of MGIC Investment by 59.2% in the 1st quarter. Cerity Partners LLC now owns 78,307 shares of the insurance provider's stock valued at $1,940,000 after buying an additional 29,104 shares in the last quarter. GAMMA Investing LLC boosted its holdings in shares of MGIC Investment by 39.1% in the 1st quarter. GAMMA Investing LLC now owns 6,068 shares of the insurance provider's stock valued at $150,000 after buying an additional 1,705 shares in the last quarter. Allspring Global Investments Holdings LLC boosted its holdings in shares of MGIC Investment by 50.1% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 16,147 shares of the insurance provider's stock valued at $406,000 after buying an additional 5,393 shares in the last quarter. Finally, GSA Capital Partners LLP acquired a new position in shares of MGIC Investment in the 1st quarter valued at $1,353,000. 95.58% of the stock is owned by institutional investors.

Analyst Ratings Changes

MTG has been the topic of several analyst reports. Keefe, Bruyette & Woods increased their target price on MGIC Investment from $26.00 to $27.00 and gave the stock a "market perform" rating in a research report on Monday, July 7th. Compass Point reaffirmed a "neutral" rating and issued a $28.00 price target (up previously from $27.00) on shares of MGIC Investment in a research note on Friday, May 23rd. Finally, Barclays lifted their price target on shares of MGIC Investment from $26.00 to $27.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 8th. One analyst has rated the stock with a sell rating and five have given a hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target 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.