MGIC Investment (NYSE:MTG) EVP Paula Maggio Sells 20,000 Shares

Key Points

• MGIC Investment EVP Paula Maggio sold 20,000 shares at an average price of $30.30, worth $606,000, reducing her holdings by 11.79% under a pre-arranged Rule 10b5-1 plan.
• The company’s latest quarterly results exceeded expectations, with EPS of $0.87 versus the $0.76 consensus estimate, although revenue fell 2.9% year over year.
• MGIC authorized a $750 million share buyback and raised its quarterly dividend to $0.17 per share, while analysts maintain a consensus “Hold” rating with a $30.60 target price.

MGIC Investment Corporation (NYSE:MTG - Get Free Report) EVP Paula Maggio sold 20,000 shares of the company's stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $30.30, for a total transaction of $606,000.00. Following the transaction, the executive vice president owned 149,620 shares of the company's stock, valued at approximately $4,533,486. This trade represents a 11.79% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

MGIC Investment Price Performance

NYSE MTG traded down $0.19 during trading hours on Monday, hitting $30.29. 1,357,874 shares of the company's stock traded hands, compared to its average volume of 2,049,520. The company has a market capitalization of $6.21 billion, a PE ratio of 9.47, a PEG ratio of 0.78 and a beta of 0.66. The firm's 50-day moving average is $27.91 and its 200-day moving average is $27.11. MGIC Investment Corporation has a 52-week low of $24.69 and a 52-week high of $31.89. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.19 and a quick ratio of 1.19.

MGIC Investment (NYSE:MTG - Get Free Report) last issued its earnings results on Wednesday, July 29th. The insurance provider reported $0.87 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.76 by $0.11. The business had revenue of $295.39 million during the quarter, compared to the consensus estimate of $297.54 million. MGIC Investment had a return on equity of 13.90% and a net margin of 59.20%.The company's revenue for the quarter was down 2.9% on a year-over-year basis. During the same period last year, the company earned $0.82 EPS. Equities analysts forecast that MGIC Investment Corporation will post 3.21 EPS for the current fiscal year.

MGIC Investment announced that its Board of Directors has initiated a stock 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 buy up to 12.4% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's board believes its shares are undervalued.

MGIC Investment Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. Stockholders of record on Wednesday, August 5th will be given a dividend of $0.17 per share. This is a boost from MGIC Investment's previous quarterly dividend of $0.15. This represents a $0.68 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend is Wednesday, August 5th. MGIC Investment's dividend payout ratio is currently 21.25%.

Wall Street Analysts Forecast Growth

MTG has been the topic of a number of research reports. Keefe, Bruyette & Woods increased their target price on shares of MGIC Investment from $29.00 to $30.00 and gave the stock a "market perform" rating in a report on Friday, July 31st. Weiss Ratings raised MGIC Investment from a "buy (b)" rating to a "buy (b+)" rating in a research report on Tuesday, July 7th. Royal Bank Of Canada lifted their target price on MGIC Investment from $28.00 to $32.00 and gave the company a "sector perform" rating in a report on Friday, July 31st. Roth Capital reissued a "buy" rating and set a $35.00 target price on shares of MGIC Investment in a research note on Thursday, July 30th. Finally, Barclays cut their price target on MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating on the stock in a report on Friday, May 1st. Two research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $30.60.

Institutional Investors Weigh In On MGIC Investment

A number of large investors have recently modified their holdings of the company. Newbridge Financial Services Group Inc. purchased a new stake in shares of MGIC Investment during the 3rd quarter worth $28,000. V Square Quantitative Management LLC purchased a new position in MGIC Investment in the fourth quarter valued at $36,000. SBI Securities Co. Ltd. raised its stake in MGIC Investment by 40.3% in the fourth quarter. SBI Securities Co. Ltd. now owns 1,461 shares of the insurance provider's stock valued at $43,000 after buying an additional 420 shares in the last quarter. Geneos Wealth Management Inc. raised its stake in MGIC Investment by 88.0% in the first quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider's stock valued at $43,000 after buying an additional 817 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in MGIC Investment during the 2nd quarter worth about $62,000. 95.58% of the stock is owned by hedge funds and other 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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