MGIC Investment (NYSE:MTG) Stock Price Down 7.3% – Time to Sell?

MGIC Investment Corporation (NYSE:MTG) shares were down 7.3% on Tuesday . The stock traded as low as $25.97 and last traded at $25.8620. Approximately 2,555,919 shares traded hands during trading, an increase of 37% from the average daily volume of 1,863,248 shares. The stock had previously closed at $27.90.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. Keefe, Bruyette & Woods raised their price target on MGIC Investment from $27.00 to $28.00 and gave the company a “market perform” rating in a research report on Thursday, December 18th. Barclays raised their target price on shares of MGIC Investment from $28.00 to $30.00 and gave the company an “equal weight” rating in a report on Tuesday, January 6th. Finally, Weiss Ratings reiterated a “buy (a-)” rating on shares of MGIC Investment in a research report on Wednesday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $28.00.

MGIC Investment Trading Down 7.9%

The firm’s 50 day simple moving average is $28.68 and its 200-day simple moving average is $27.77. The company has a market capitalization of $5.75 billion, a PE ratio of 8.26, a P/E/G ratio of 1.61 and a beta of 0.84. The company has a quick ratio of 1.48, a current ratio of 1.48 and a debt-to-equity ratio of 0.12.

MGIC Investment (NYSE:MTG) last posted its earnings results on Wednesday, October 29th. The insurance provider reported $0.83 earnings per share for the quarter, beating the consensus estimate of $0.72 by $0.11. The business had revenue of $304.51 million for the quarter, compared to analyst estimates of $308.16 million. MGIC Investment had a net margin of 61.96% and a return on equity of 14.62%. The business’s quarterly revenue was down .7% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.77 EPS. As a group, equities research analysts anticipate that MGIC Investment Corporation will post 2.71 EPS for the current year.

MGIC Investment Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, November 20th. Shareholders of record on Thursday, November 6th were issued a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend was Thursday, November 6th. MGIC Investment’s dividend payout ratio is 19.29%.

Insider Transactions at MGIC Investment

In related news, COO Salvatore A. Miosi sold 30,000 shares of the company’s stock in a transaction on Monday, November 3rd. The stock was sold at an average price of $27.52, for a total transaction of $825,600.00. Following the completion of the transaction, the chief operating officer directly owned 159,401 shares in the company, valued at $4,386,715.52. This represents a 15.84% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Paula C. Maggio sold 20,000 shares of the business’s stock in a transaction on Friday, October 31st. The shares were sold at an average price of $27.44, for a total transaction of $548,800.00. Following the transaction, the executive vice president directly owned 117,395 shares of the company’s stock, valued at approximately $3,221,318.80. This trade represents a 14.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.41% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of MTG. JPMorgan Chase & Co. grew its holdings in MGIC Investment by 13.4% in the 2nd quarter. JPMorgan Chase & Co. now owns 18,331,120 shares of the insurance provider’s stock worth $510,338,000 after buying an additional 2,168,940 shares in the last quarter. AQR Capital Management LLC boosted its position in MGIC Investment by 39.7% during the 3rd quarter. AQR Capital Management LLC now owns 8,844,749 shares of the insurance provider’s stock worth $250,926,000 after acquiring an additional 2,511,658 shares during the period. First Trust Advisors LP grew its stake in shares of MGIC Investment by 48.1% in the second quarter. First Trust Advisors LP now owns 7,302,263 shares of the insurance provider’s stock worth $203,295,000 after purchasing an additional 2,370,403 shares in the last quarter. Allianz Asset Management GmbH lifted its holdings in MGIC Investment by 40.6% in the second quarter. Allianz Asset Management GmbH now owns 5,398,356 shares of the insurance provider’s stock worth $150,290,000 after purchasing an additional 1,557,970 shares during the period. Finally, Northern Trust Corp lifted its stake in shares of MGIC Investment by 10.7% in the 3rd quarter. Northern Trust Corp now owns 4,561,398 shares of the insurance provider’s stock worth $129,407,000 after acquiring an additional 441,809 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.