Nordea Investment Management AB, a prominent investment management company, has recently decreased its stake in MGIC Investment Co. by 2.8% during the second quarter of this year, according to its latest filing with the Securities and Exchange Commission. The firm now owns 486,344 shares of MGIC Investment’s stock after selling 14,005 shares in the mentioned timeframe. At the end of the reporting period, Nordea Investment Management AB held approximately $7,650,000 worth of MGIC Investment shares.
MGIC Investment Co., an insurance provider, has also declared a quarterly dividend recently. The dividend was paid out on August 24th to stockholders of record as of August 10th. Shareholders who met these requirements received a dividend worth $0.115 per share. This recent development shows an increase from MGIC Investment’s previous quarterly dividend amounting to $0.10 per share. From an annualized basis, this represents a $0.46 dividend and a dividend yield of 2.66%. It is essential to note that the ex-dividend date for this payment was August 9th.
Furthermore, MGIC Investment’s current dividend payout ratio (DPR), which refers to the percentage of earnings distributed as dividends to shareholders, stands at 17.42%. This figure indicates the proportion of net income that the company allocates for dividends.
These recent financial activities by both Nordea Investment Management AB and MGIC Investment Co highlight crucial aspects of their strategies and financial performance. While Nordea has reduced its position in MGIC Investment by a modest percentage, it still holds a notable stake in the insurance provider’s stock. Meanwhile, MGIC’s decision to increase its quarterly dividend suggests confidence in its ability to generate sufficient earnings and distribute them among its shareholders.
It is worth mentioning that investing in stocks involves risks and potential rewards for investors who need to carefully assess market conditions and make informed decisions. This information is merely presented as a report of the recent activities of Nordea Investment Management AB and MGIC Investment Co. on September 20, 2023.
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Institutional Investors Increase Stake in MGIC Investment as Analysts Offer Mixed Views
MGIC Investment (NYSE:MTG) has recently seen changes in its institutional investors’ positions, as reported by various sources. One such investor, Victory Capital Management Inc., raised its holdings in MGIC Investment by 8.4% during the first quarter of this year. This resulted in Victory Capital now owning 3,026,411 shares of the insurance provider’s stock worth $40,614,000.
Similarly, Legato Capital Management LLC also acquired a new stake in MGIC Investment during the first quarter with an investment totaling approximately $396,000. In addition to these changes, Brandywine Global Investment Management LLC increased its stake in MGIC Investment by 4.8% during the same period. The company now owns 773,417 shares of the insurance provider’s stock worth $10,379,000.
Another player in the market that expressed interest in MGIC is Lakewood Asset Management LLC. This firm purchased a new position in MGIC Investment last year for about $34,000. To wrap up this list of institutional investors making moves with MGIC Investment is AXQ Capital LP which purchased a new position for about $165,000.
It is important to note that these institutional investors together account for a substantial ownership stake in MGIC Investment. Reports indicate that they collectively own approximately 93.41% of the company’s stock.
Moving on to analysts’ opinions and recommendations regarding MTG shares, several research analysts have weighed in on the topic as well. Royal Bank of Canada recently raised their price target on shares of MGIC Investment from $17.00 to $18.00 and gave it a “sector perform” rating.
Additionally, Compass Point increased their price target for MGIC Investment from $18.00 to $20.00 while StockNews.com initiated coverage on the company and assigned it a “hold” rating.
Overall, three investment analysts have given the stock a hold rating, with two analysts recommending it as a buy. According to Bloomberg data, the stock currently maintains a consensus rating of “Hold” and has a target price averaging at $16.75.
On September 20, 2023, NYSE MTG opened at $17.30. The company’s financial position includes a debt-to-equity ratio of 0.14, a quick ratio and current ratio both standing at 0.66 respectively. With a market capitalization amounting to $4.88 billion, MGIC Investment holds a price-to-earnings ratio of 6.55 and a price-to-earnings-growth ratio of 1.46.
Furthermore, the stock has displayed stability with its 50-day simple moving average resting at $17.18 and its two-hundred day simple moving average at $15.44.
Regarding the company’s recent earnings report, MGIC Investment announced an EPS (earnings per share) of $0.68 for the last quarter on August 2nd. This was higher than analysts’ consensus estimates by $0.13, who had predicted an EPS of $0.55.
In terms of revenue, MGIC Investment generated $290.70 million during the quarter in comparison to the consensus estimate of $292.51 million. Despite experiencing a slight decrease (0.8%) in revenue compared to the same quarter last year, MGIC Investment managed to maintain its strong net margin of 67.83% and return on equity of 17.26%.
Based on these results, equities analysts are anticipating that MGIC Investment Co.’s current fiscal year will end with an EPS of approximately 2.36.
Overall, MGIC Investment has garnered significant attention from institutional investors this year while receiving mixed feedback from research analysts in terms of ratings and price targets for its shares.
