Hsbc Holdings PLC Acquires 40,751 Shares of MGIC Investment Corporation $MTG

Hsbc Holdings PLC lifted its holdings in shares of MGIC Investment Corporation (NYSE:MTG) by 24.5% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 207,412 shares of the insurance provider’s stock after acquiring an additional 40,751 shares during the quarter. Hsbc Holdings PLC owned 0.10% of MGIC Investment worth $6,089,000 at the end of the most recent quarter.

A number of other hedge funds have also bought and sold shares of the business. Jefferies Financial Group Inc. boosted its holdings in shares of MGIC Investment by 245.3% in the 4th quarter. Jefferies Financial Group Inc. now owns 364,650 shares of the insurance provider’s stock worth $10,655,000 after buying an additional 259,039 shares during the last quarter. Tudor Investment Corp ET AL grew its position in MGIC Investment by 106.1% during the third quarter. Tudor Investment Corp ET AL now owns 687,445 shares of the insurance provider’s stock valued at $19,503,000 after buying an additional 353,935 shares during the period. Arbejdsmarkedets Tillaegspension purchased a new stake in MGIC Investment during the fourth quarter worth about $24,456,000. Geode Capital Management LLC increased its holdings in MGIC Investment by 2.8% during the fourth quarter. Geode Capital Management LLC now owns 5,371,470 shares of the insurance provider’s stock worth $163,368,000 after buying an additional 146,589 shares during the last quarter. Finally, Intech Investment Management LLC bought a new stake in MGIC Investment in the third quarter worth about $1,444,000. 95.58% of the stock is currently owned by institutional investors.

MGIC Investment Trading Up 1.9%

Shares of MTG stock opened at $27.88 on Friday. The stock has a market capitalization of $5.90 billion, a price-to-earnings ratio of 8.85, a PEG ratio of 1.92 and a beta of 0.68. The company’s fifty day simple moving average is $26.50 and its two-hundred day simple moving average is $27.01. MGIC Investment Corporation has a 1 year low of $24.69 and a 1 year high of $29.97. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.14 and a quick ratio of 1.14.

MGIC Investment (NYSE:MTG) last announced its quarterly earnings results 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. MGIC Investment had a return on equity of 14.01% and a net margin of 59.63%.The company had revenue of $297.08 million during the quarter, compared to analysts’ expectations of $303.12 million. During the same period in the previous year, the business earned $0.75 earnings per share. The firm’s quarterly revenue was down 3.0% compared to the same quarter last year. As a group, analysts anticipate that MGIC Investment Corporation will post 3.05 earnings per share for the current year.

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

MGIC Investment Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, May 21st. Shareholders of record on Wednesday, May 6th were issued a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend was Wednesday, May 6th. MGIC Investment’s payout ratio is presently 19.05%.

Insider Activity

In other news, CEO Timothy J. Mattke sold 139,202 shares of the company’s stock in a transaction dated Thursday, April 2nd. The stock was sold at an average price of $26.49, for a total transaction of $3,687,460.98. Following the sale, the chief executive officer directly owned 1,118,005 shares in the company, valued at $29,615,952.45. This represents a 11.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Salvatore A. Miosi sold 30,000 shares of the stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $25.38, for a total transaction of $761,400.00. Following the completion of the sale, the chief operating officer directly owned 560,951 shares in the company, valued at approximately $14,236,936.38. The trade was a 5.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 201,070 shares of company stock worth $5,270,740 over the last ninety days. Company insiders own 1.34% of the company’s stock.

Analyst Ratings Changes

MTG has been the topic of a number of research analyst reports. Keefe, Bruyette & Woods boosted their target price on shares of MGIC Investment from $28.00 to $29.00 and gave the company a “market perform” rating in a research note on Friday, April 10th. Royal Bank Of Canada assumed 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 dropped their price objective on MGIC Investment from $29.50 to $28.00 and set a “neutral” rating on the stock in a research note on Thursday, March 12th. Weiss Ratings reissued a “buy (b)” rating on shares of MGIC Investment in a report on Monday, June 15th. Finally, Barclays reduced their price objective on MGIC Investment from $29.00 to $28.00 and set an “equal weight” rating for the company in a report on Friday, May 1st. One analyst has rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $28.25.

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.