MGIC Investment (NYSE:MTG) COO Salvatore Miosi Sells 30,000 Shares

Key Points

• MGIC Investment COO Salvatore Miosi sold 30,000 shares on June 8 at an average price of $25.38, generating about $761,400. The sale was made under a pre-arranged Rule 10b5-1 trading plan, and his ownership fell 5.08% to 560,951 shares.
• The company recently beat earnings expectations, reporting $0.76 per share versus the $0.73 consensus estimate in its latest quarterly results. Revenue came in at $297.08 million, slightly below forecasts, while revenue declined 3% year over year.
• MGIC also returned cash to shareholders and expanded buybacks, paying a quarterly dividend of $0.15 per share and authorizing a $750 million share repurchase program. The stock currently carries a Wall Street consensus rating of “Hold” with an average price target of $28.25.

MGIC Investment Corporation (NYSE:MTG - Get Free Report) COO Salvatore Miosi sold 30,000 shares of the company's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $25.38, for a total value of $761,400.00. Following the completion of the sale, the chief operating officer owned 560,951 shares in the company, valued at approximately $14,236,936.38. This represents a 5.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

MGIC Investment Price Performance

Shares of MTG stock traded up $0.30 during trading hours on Tuesday, hitting $25.55. The company had a trading volume of 1,523,468 shares, compared to its average volume of 2,110,503. MGIC Investment Corporation has a 12 month low of $24.69 and a 12 month high of $29.97. The firm has a market capitalization of $5.40 billion, a price-to-earnings ratio of 8.11, a PEG ratio of 1.75 and a beta of 0.68. The firm's fifty day moving average is $26.65 and its 200 day moving average is $27.19. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.14 and a current ratio of 1.14.

MGIC Investment (NYSE:MTG - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The insurance provider reported $0.76 earnings per share for the quarter, beating the consensus estimate of $0.73 by $0.03. The company had revenue of $297.08 million for the quarter, compared to analyst estimates of $303.12 million. MGIC Investment had a return on equity of 14.01% and a net margin of 59.63%.The company's revenue was down 3.0% compared to the same quarter last year. During the same period in the prior year, the company posted $0.75 EPS. On average, sell-side analysts predict that MGIC Investment Corporation will post 3.06 EPS for the current fiscal year.

MGIC Investment Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, May 21st. Investors of record on Wednesday, May 6th were given a dividend of $0.15 per share. The ex-dividend date was Wednesday, May 6th. This represents a $0.60 dividend on an annualized basis and a yield of 2.3%. MGIC Investment's dividend payout ratio is 19.05%.

MGIC Investment announced that its board has approved a share buyback program on Thursday, April 23rd that allows the company to buyback $750.00 million in outstanding shares. This buyback authorization allows the insurance provider to repurchase up to 12.4% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on MTG. Royal Bank Of Canada began coverage on shares of MGIC Investment in a research note on Friday, May 22nd. They issued a "sector perform" rating and a $28.00 target price for the company. Keefe, Bruyette & Woods boosted their target price on shares of MGIC Investment from $28.00 to $29.00 and gave the stock a "market perform" rating in a research note on Friday, April 10th. UBS Group lowered their price target on shares of MGIC Investment from $29.50 to $28.00 and set a "neutral" rating for the company in a report on Thursday, March 12th. Finally, Barclays dropped their price objective on shares of MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating for the company in a research report on Friday, May 1st. One investment analyst has rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $28.25.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Norges Bank acquired a new position in shares of MGIC Investment in the 4th quarter valued at $96,248,000. AQR Capital Management LLC lifted its stake in shares of MGIC Investment by 92.4% in the 2nd quarter. AQR Capital Management LLC now owns 6,333,091 shares of the insurance provider's stock valued at $176,313,000 after purchasing an additional 3,041,446 shares during the period. Assetmark Inc. lifted its stake in shares of MGIC Investment by 1,208.1% in the 3rd quarter. Assetmark Inc. now owns 1,674,152 shares of the insurance provider's stock valued at $47,496,000 after purchasing an additional 1,546,173 shares during the period. Arbejdsmarkedets Tillaegspension acquired a new position in shares of MGIC Investment in the 4th quarter valued at $24,456,000. Finally, Jane Street Group LLC lifted its stake in shares of MGIC Investment by 71.2% in the 4th quarter. Jane Street Group LLC now owns 1,739,877 shares of the insurance provider's stock valued at $50,839,000 after purchasing an additional 723,480 shares during the period. 95.58% of the stock is currently owned by institutional investors.

MGIC Investment Company Profile

MGIC Investment Corporation NYSE: MTG is a leading provider of private mortgage insurance in the United States. Established in 1957 as the nation's first private mortgage insurer, MGIC helps lenders manage credit risk and facilitates homeownership by protecting mortgage loans against default. Headquartered in Milwaukee, Wisconsin, the company operates through its principal subsidiary, Mortgage Guaranty Insurance Corporation, and maintains relationships with a broad network of originators and servicers nationwide.

The company's primary business activity involves issuing mortgage insurance policies that enable borrowers to purchase homes with down payments below traditional lending thresholds.

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