Brown Advisory Inc. Lowers Stake in MGIC Investment Corporation $MTG

Brown Advisory Inc. reduced its stake in shares of MGIC Investment Corporation (NYSE:MTG) by 7.8% in the fourth quarter, Holdings Channel reports. The firm owned 1,316,528 shares of the insurance provider’s stock after selling 112,020 shares during the period. Brown Advisory Inc.’s holdings in MGIC Investment were worth $38,469,000 at the end of the most recent quarter.

A number of other large investors have also recently made changes to their positions in MTG. Newbridge Financial Services Group Inc. purchased a new stake in shares of MGIC Investment during the third quarter valued at $28,000. V Square Quantitative Management LLC purchased a new stake in MGIC Investment in the fourth quarter worth about $36,000. Abich Financial Wealth Management LLC purchased a new stake in MGIC Investment in the third quarter worth about $42,000. SBI Securities Co. Ltd. lifted 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 worth $43,000 after acquiring an additional 420 shares during the period. Finally, Geneos Wealth Management Inc. lifted 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 worth $43,000 after acquiring an additional 817 shares during the period. 95.58% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Barclays lowered their price objective on shares of MGIC Investment from $29.00 to $28.00 and set an “equal weight” rating for the company in a research note on Friday, May 1st. UBS Group lowered their price objective on shares of MGIC Investment from $29.50 to $28.00 and set a “neutral” rating for the company in a research note on Thursday, March 12th. Keefe, Bruyette & Woods upped their price objective on shares of MGIC Investment from $28.00 to $29.00 and gave the stock a “market perform” rating in a research note on Friday, April 10th. Finally, Royal Bank Of Canada started coverage on shares of MGIC Investment in a research note on Friday, May 22nd. They issued a “sector perform” rating and a $28.00 price objective for the company. One investment analyst has rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, MGIC Investment currently has a consensus rating of “Hold” and an average price target of $28.25.

Insider Buying and Selling

In related news, CEO Timothy J. Mattke sold 139,202 shares of the stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $26.49, for a total value of $3,687,460.98. Following the transaction, the chief executive officer owned 1,118,005 shares in the company, valued at approximately $29,615,952.45. This represents a 11.07% decrease in their position. The sale 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. Also, EVP Paula C. Maggio sold 20,937 shares of the 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 completion of the transaction, the executive vice president owned 169,620 shares in the company, valued at approximately $4,333,791. This trade represents a 10.99% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 201,070 shares of company stock worth $5,270,740. 1.34% of the stock is owned by company insiders.

MGIC Investment Stock Performance

MTG opened at $25.81 on Tuesday. MGIC Investment Corporation has a 52-week low of $24.69 and a 52-week high of $29.97. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.13. The company has a market cap of $5.46 billion, a P/E ratio of 8.19, a price-to-earnings-growth ratio of 1.77 and a beta of 0.68. The firm’s 50-day moving average price is $26.60 and its 200-day moving average price is $27.10.

MGIC Investment (NYSE:MTG) last posted its quarterly earnings data on Wednesday, April 29th. The insurance provider reported $0.76 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $297.08 million for the quarter, compared to the consensus estimate of $303.12 million. During the same quarter in the prior year, the company posted $0.75 earnings per share. The company’s revenue for the quarter was down 3.0% compared to the same quarter last year. As a group, equities analysts anticipate that MGIC Investment Corporation will post 3.06 EPS for the current fiscal year.

MGIC Investment Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, May 21st. Investors of record on Wednesday, May 6th were issued a $0.15 dividend. This represents a $0.60 annualized dividend and a yield of 2.3%. The ex-dividend date was Wednesday, May 6th. MGIC Investment’s dividend payout ratio is 19.05%.

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

About MGIC Investment

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.