Hsbc Holdings PLC Grows Holdings in MGIC Investment Co. (NYSE:MTG)

Hsbc Holdings PLC lifted its holdings in MGIC Investment Co. (NYSE:MTG) by 2,492.3% during the fourth quarter, Holdings Channel reports. The institutional investor owned 237,014 shares of the insurance provider’s stock after acquiring an additional 227,871 shares during the quarter. Hsbc Holdings PLC’s holdings in MGIC Investment were worth $5,633,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. First Trust Advisors LP grew its position in shares of MGIC Investment by 22.4% in the 4th quarter. First Trust Advisors LP now owns 16,008,489 shares of the insurance provider’s stock worth $379,561,000 after buying an additional 2,928,595 shares during the period. LSV Asset Management grew its position in MGIC Investment by 2.3% during the 4th quarter. LSV Asset Management now owns 10,578,342 shares of the insurance provider’s stock valued at $250,812,000 after purchasing an additional 235,916 shares during the last quarter. Allianz Asset Management GmbH grew its position in MGIC Investment by 8.2% during the 4th quarter. Allianz Asset Management GmbH now owns 5,495,115 shares of the insurance provider’s stock valued at $130,289,000 after purchasing an additional 415,586 shares during the last quarter. Invesco Ltd. grew its position in MGIC Investment by 16.6% during the 4th quarter. Invesco Ltd. now owns 4,766,195 shares of the insurance provider’s stock valued at $113,006,000 after purchasing an additional 677,227 shares during the last quarter. Finally, Norges Bank purchased a new stake in MGIC Investment during the 4th quarter valued at about $85,908,000. 95.58% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several analysts recently commented on MTG shares. Keefe, Bruyette & Woods cut their price objective on shares of MGIC Investment from $28.00 to $26.00 and set a “market perform” rating on the stock in a research report on Tuesday, April 8th. Barclays increased their price objective on shares of MGIC Investment from $25.00 to $26.00 and gave the company an “equal weight” rating in a research report on Wednesday, February 5th. Compass Point reaffirmed a “neutral” rating and set a $27.00 price target (up previously from $24.00) on shares of MGIC Investment in a report on Wednesday, February 5th. Finally, UBS Group raised their price target on shares of MGIC Investment from $25.00 to $26.00 and gave the company a “neutral” rating in a report on Wednesday, February 19th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and two have assigned a buy rating to the company’s stock. According to MarketBeat.com, MGIC Investment presently has an average rating of “Hold” and an average target price of $26.50.

MGIC Investment Price Performance

Shares of NYSE:MTG opened at $24.57 on Tuesday. The firm’s 50 day moving average price is $23.86 and its 200-day moving average price is $24.45. MGIC Investment Co. has a twelve month low of $20.02 and a twelve month high of $26.56. The company has a quick ratio of 1.25, a current ratio of 0.48 and a debt-to-equity ratio of 0.12. The stock has a market capitalization of $5.96 billion, a PE ratio of 8.47 and a beta of 0.93.

MGIC Investment (NYSE:MTG) last issued its quarterly earnings data on Monday, February 3rd. The insurance provider reported $0.72 earnings per share for the quarter, topping the consensus estimate of $0.65 by $0.07. MGIC Investment had a net margin of 63.18% and a return on equity of 14.86%. Equities research analysts expect that MGIC Investment Co. will post 2.71 EPS for the current year.

MGIC Investment Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, May 21st. Shareholders of record on Thursday, May 8th will be paid a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a yield of 2.12%. The ex-dividend date of this dividend is Thursday, May 8th. MGIC Investment’s payout ratio is 17.93%.

MGIC Investment announced that its board has approved a share repurchase program on Thursday, April 24th that permits the company to buyback $750.00 million in outstanding shares. This buyback authorization permits the insurance provider to reacquire up to 12.5% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s management believes its shares are undervalued.

Insiders Place Their Bets

In other MGIC Investment news, CAO Julie K. Sperber sold 4,600 shares of the firm’s stock in a transaction that occurred on Friday, February 21st. The shares were sold at an average price of $24.55, for a total transaction of $112,930.00. Following the sale, the chief accounting officer now owns 75,070 shares in the company, valued at approximately $1,842,968.50. This trade represents a 5.77 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 1.05% of the stock is owned by company insiders.

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 District of Columbia, Puerto Rico, and Guam. 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.