Paula Maggio Sells 20,937 Shares of MGIC Investment (NYSE:MTG) Stock

Key Points

• MGIC Investment EVP Paula Maggio sold 20,937 shares on May 29 at an average price of $25.55, totaling about $534,940. The sale was made under a pre-arranged Rule 10b5-1 plan.
• The company recently reported quarterly earnings of $0.76 per share, beating estimates by $0.03, though revenue came in below expectations at $297.08 million and was down 3% year over year.
• MGIC Investment continues to return cash to shareholders through a quarterly dividend of $0.15 and a newly authorized $750 million stock buyback plan, while analysts currently rate the stock a consensus Hold with a $28.25 target price.

MGIC Investment Corporation (NYSE:MTG - Get Free Report) EVP Paula Maggio sold 20,937 shares of the company's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $25.55, for a total transaction of $534,940.35. Following the transaction, the executive vice president owned 169,620 shares of the company's stock, valued at approximately $4,333,791. This represents a 10.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

MGIC Investment Price Performance

MGIC Investment stock traded down $0.14 during mid-day trading on Monday, reaching $25.09. The company had a trading volume of 2,505,925 shares, compared to its average volume of 2,134,271. The business has a fifty day simple moving average of $26.75 and a 200 day simple moving average of $27.32. The company has a market cap of $5.31 billion, a P/E ratio of 7.96, a P/E/G ratio of 1.73 and a beta of 0.68. MGIC Investment Corporation has a fifty-two week low of $24.77 and a fifty-two week high of $29.97. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.13.

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

MGIC Investment Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, May 21st. Shareholders of record on Wednesday, May 6th were issued a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend was Wednesday, May 6th. MGIC Investment's dividend payout ratio is presently 19.05%.

MGIC Investment declared that its board has initiated a stock buyback plan on Thursday, April 23rd that permits the company to repurchase $750.00 million in shares. This repurchase authorization permits the insurance provider to buy up to 12.4% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

MTG has been the topic of a number of research reports. Weiss Ratings lowered shares of MGIC Investment from a "buy (a-)" rating to a "buy (b+)" rating in a report on Thursday, February 5th. Royal Bank Of Canada began coverage on shares of MGIC Investment in a research note on Friday, May 22nd. They set a "sector perform" rating and a $28.00 price target for the company. UBS Group cut their price target on shares of MGIC Investment from $29.50 to $28.00 and set a "neutral" rating on the stock in a report on Thursday, March 12th. Barclays reduced their price objective on shares of MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating on the stock in a research note on Friday, May 1st. Finally, Keefe, Bruyette & Woods increased their price objective on MGIC Investment from $28.00 to $29.00 and gave the company a "market perform" rating in a report on Friday, April 10th. One analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $28.25.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Newbridge Financial Services Group Inc. acquired a new stake in MGIC Investment during the third quarter worth approximately $28,000. SBI Securities Co. Ltd. boosted its holdings in shares of MGIC Investment by 61.1% during the 3rd quarter. SBI Securities Co. Ltd. now owns 1,041 shares of the insurance provider's stock worth $30,000 after buying an additional 395 shares in the last quarter. V Square Quantitative Management LLC bought a new position in shares of MGIC Investment during the 4th quarter worth approximately $36,000. Abich Financial Wealth Management LLC acquired a new stake in shares of MGIC Investment during the 3rd quarter worth approximately $42,000. Finally, Geneos Wealth Management Inc. grew its position in shares of MGIC Investment by 88.0% during the 1st 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. 95.58% of the stock is owned by institutional investors and hedge funds.

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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