MGIC Investment Target of Unusually High Options Trading (MTG)

MGIC Investment Corp. (NYSE:MTG) saw unusually large options trading on Wednesday. Stock investors acquired 993 put options on the company. This is an increase of 1,705% compared to the average volume of 55 put options.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. JPMorgan Chase & Co. raised its position in MGIC Investment by 1.8% in the 3rd quarter. JPMorgan Chase & Co. now owns 1,296,246 shares of the insurance provider’s stock valued at $17,253,000 after buying an additional 22,358 shares during the last quarter. Jane Street Group LLC purchased a new stake in MGIC Investment in the 3rd quarter valued at $423,000. Federated Investors Inc. PA raised its position in MGIC Investment by 10.2% in the 3rd quarter. Federated Investors Inc. PA now owns 257,319 shares of the insurance provider’s stock valued at $3,425,000 after buying an additional 23,712 shares during the last quarter. Gateway Investment Advisers LLC raised its position in MGIC Investment by 2.2% in the 4th quarter. Gateway Investment Advisers LLC now owns 65,735 shares of the insurance provider’s stock valued at $688,000 after buying an additional 1,396 shares during the last quarter. Finally, TrimTabs Asset Management LLC purchased a new stake in MGIC Investment in the 4th quarter valued at $1,086,000. 94.06% of the stock is owned by institutional investors and hedge funds.

MTG has been the topic of a number of research reports. Zacks Investment Research lowered MGIC Investment from a “hold” rating to a “sell” rating in a research report on Wednesday, April 10th. ValuEngine lowered MGIC Investment from a “hold” rating to a “sell” rating in a research report on Thursday, March 7th. Two research analysts have rated the stock with a sell rating, one has given a hold rating and six have issued a buy rating to the stock. MGIC Investment has a consensus rating of “Hold” and an average target price of $16.81.

Shares of NYSE:MTG opened at $14.02 on Thursday. The company has a current ratio of 0.27, a quick ratio of 0.27 and a debt-to-equity ratio of 0.23. MGIC Investment has a twelve month low of $9.41 and a twelve month high of $14.97. The company has a market cap of $5.20 billion, a PE ratio of 7.88, a PEG ratio of 1.79 and a beta of 1.81.

MGIC Investment (NYSE:MTG) last issued its earnings results on Tuesday, April 23rd. The insurance provider reported $0.42 earnings per share for the quarter, topping analysts’ consensus estimates of $0.38 by $0.04. MGIC Investment had a return on equity of 19.54% and a net margin of 59.01%. The company had revenue of $291.65 million for the quarter, compared to analyst estimates of $286.01 million. During the same period in the prior year, the firm earned $0.38 earnings per share. MGIC Investment’s revenue for the quarter was up 9.7% on a year-over-year basis. Equities analysts predict that MGIC Investment will post 1.63 EPS for the current fiscal year.

MGIC Investment declared that its Board of Directors has authorized a share repurchase program on Wednesday, March 20th that permits the company to buyback $200.00 million in outstanding shares. This buyback authorization permits the insurance provider to purchase up to 4.3% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

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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 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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