Fox Run Management L.L.C. Buys Shares of 55,229 MGIC Investment Corporation $MTG

Fox Run Management L.L.C. bought a new stake in MGIC Investment Corporation (NYSE:MTG) during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 55,229 shares of the insurance provider’s stock, valued at approximately $1,614,000.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. AQR Capital Management LLC boosted its stake in MGIC Investment by 39.7% in the third quarter. AQR Capital Management LLC now owns 8,844,749 shares of the insurance provider’s stock valued at $250,926,000 after acquiring an additional 2,511,658 shares during the last quarter. Geode Capital Management LLC boosted its stake in MGIC Investment by 2.8% in the fourth quarter. Geode Capital Management LLC now owns 5,371,470 shares of the insurance provider’s stock valued at $163,368,000 after acquiring an additional 146,589 shares during the last quarter. Northern Trust Corp boosted its stake in MGIC Investment by 10.7% in the third quarter. Northern Trust Corp now owns 4,561,398 shares of the insurance provider’s stock valued at $129,407,000 after acquiring an additional 441,809 shares during the last quarter. Caisse de depot et placement du Quebec boosted its stake in MGIC Investment by 20.4% in the third quarter. Caisse de depot et placement du Quebec now owns 3,943,965 shares of the insurance provider’s stock valued at $111,890,000 after acquiring an additional 667,876 shares during the last quarter. Finally, Norges Bank bought a new stake in shares of MGIC Investment in the fourth quarter valued at approximately $96,248,000. 95.58% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on MTG. UBS Group lowered their price target on shares of MGIC Investment from $29.50 to $28.00 and set a “neutral” rating on the stock in a research report on Thursday, March 12th. Barclays lowered their price target on shares of MGIC Investment from $29.00 to $28.00 and set an “equal weight” rating on the stock in a research report on Friday, May 1st. Keefe, Bruyette & Woods boosted their price target on shares of MGIC Investment from $28.00 to $29.00 and gave the company a “market perform” rating in a research report on Friday, April 10th. Finally, Royal Bank Of Canada began coverage on shares of MGIC Investment in a research report on Friday, May 22nd. They issued a “sector perform” rating and a $28.00 price target on the stock. One equities research analyst has rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, MGIC Investment 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 company’s stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $26.49, for a total transaction of $3,687,460.98. Following the sale, the chief executive officer owned 1,118,005 shares of the company’s stock, valued at approximately $29,615,952.45. This represents a 11.07% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Salvatore A. Miosi sold 10,931 shares of the company’s stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $26.25, for a total transaction of $286,938.75. Following the sale, the chief operating officer directly owned 590,951 shares in the company, valued at $15,512,463.75. This trade represents a 1.82% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 171,070 shares of company stock valued at $4,509,340. Company insiders own 1.34% of the company’s stock.

MGIC Investment Stock Performance

NYSE MTG opened at $25.23 on Tuesday. The company’s 50 day moving average is $26.65 and its 200-day moving average is $27.19. 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 firm has a market cap of $5.34 billion, a P/E ratio of 8.01, a price-to-earnings-growth ratio of 1.75 and a beta of 0.68. MGIC Investment Corporation has a 12-month low of $24.69 and a 12-month high of $29.97.

MGIC Investment (NYSE:MTG) last posted its earnings results on Wednesday, April 29th. The insurance provider reported $0.76 earnings per share for the quarter, topping analysts’ consensus estimates of $0.73 by $0.03. The business had revenue of $297.08 million for the quarter, compared to analyst estimates of $303.12 million. MGIC Investment had a net margin of 59.63% and a return on equity of 14.01%. MGIC Investment’s revenue was down 3.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.75 EPS. Sell-side 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. Investors 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 2.4%. The ex-dividend date of this dividend was Wednesday, May 6th. MGIC Investment’s dividend payout ratio is 19.05%.

MGIC Investment announced that its board has authorized a share buyback 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 often a sign that the company’s management believes its stock is undervalued.

MGIC Investment 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.