Investors Buy High Volume of Put Options on MGIC Investment (MTG)

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MGIC Investment Corp. (NYSE:MTG) saw unusually large options trading on Wednesday. Traders acquired 993 put options on the stock. This represents an increase of approximately 1,705% compared to the average daily volume of 55 put options.

MTG has been the subject of several research reports. Zacks Investment Research downgraded MGIC Investment from a “hold” rating to a “sell” rating in a research note on Wednesday, April 10th. ValuEngine downgraded MGIC Investment from a “hold” rating to a “sell” rating in a research note on Thursday, March 7th. Two analysts have rated the stock with a sell rating, one has assigned a hold rating and six have issued a buy rating to the stock. MGIC Investment presently has an average rating of “Hold” and a consensus target price of $16.81.

A number of institutional investors and hedge funds have recently modified their holdings of MTG. Bayview Asset Management LLC purchased a new stake in MGIC Investment during the 4th quarter worth about $78,592,000. Norges Bank purchased a new stake in MGIC Investment during the 4th quarter worth about $42,196,000. Shoals Capital Management LP purchased a new stake in MGIC Investment during the 4th quarter worth about $12,029,000. Boston Partners lifted its holdings in MGIC Investment by 248.1% during the 4th quarter. Boston Partners now owns 1,411,530 shares of the insurance provider’s stock worth $14,765,000 after purchasing an additional 1,006,070 shares in the last quarter. Finally, Prudential Financial Inc. raised its holdings in shares of MGIC Investment by 35.0% in the 4th quarter. Prudential Financial Inc. now owns 3,290,203 shares of the insurance provider’s stock valued at $34,416,000 after acquiring an additional 853,549 shares in the last quarter. 94.06% of the stock is currently owned by institutional investors and hedge funds.

Shares of MTG opened at $14.02 on Thursday. The stock has a market cap of $5.20 billion, a P/E ratio of 7.88, a P/E/G ratio of 1.79 and a beta of 1.81. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.27 and a current ratio of 0.27. MGIC Investment has a 52-week low of $9.41 and a 52-week high of $14.97.

MGIC Investment (NYSE:MTG) last issued its quarterly earnings data on Tuesday, April 23rd. The insurance provider reported $0.42 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.38 by $0.04. The business had revenue of $291.65 million for the quarter, compared to analysts’ expectations of $286.01 million. MGIC Investment had a return on equity of 19.54% and a net margin of 59.01%. The firm’s quarterly revenue was up 9.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.38 EPS. As a group, research analysts expect that MGIC Investment will post 1.63 EPS for the current year.

MGIC Investment announced that its Board of Directors has initiated a share repurchase program on Wednesday, March 20th that authorizes the company to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the insurance provider to buy up to 4.3% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its stock is undervalued.

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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 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.

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