MGIC Investment Corp. (NYSE:MTG) Sees Large Growth in Short Interest

MGIC Investment Corp. (NYSE:MTG) was the recipient of a large increase in short interest during the month of June. As of June 30th, there was short interest totalling 7,008,100 shares, an increase of 39.0% from the May 30th total of 5,040,600 shares. Currently, 2.0% of the company’s shares are sold short. Based on an average daily volume of 3,910,000 shares, the days-to-cover ratio is presently 1.8 days.

Separately, Zacks Investment Research downgraded Heritage Insurance from a “hold” rating to a “strong sell” rating in a research report on Friday, April 26th. Two investment analysts have rated the stock with a sell rating, one has given a hold rating and six have issued a buy rating to the stock. MGIC Investment presently has a consensus rating of “Hold” and an average price target of $16.81.

Several hedge funds have recently modified their holdings of the business. BlackRock Inc. lifted its holdings in shares of MGIC Investment by 2.4% in the 4th quarter. BlackRock Inc. now owns 26,172,069 shares of the insurance provider’s stock worth $273,759,000 after buying an additional 602,849 shares during the period. AJO LP lifted its holdings in shares of MGIC Investment by 217.3% in the 1st quarter. AJO LP now owns 8,653,793 shares of the insurance provider’s stock worth $114,144,000 after buying an additional 5,926,435 shares during the period. Bayview Asset Management LLC lifted its holdings in shares of MGIC Investment by 4.0% in the 1st quarter. Bayview Asset Management LLC now owns 7,813,534 shares of the insurance provider’s stock worth $103,061,000 after buying an additional 300,000 shares during the period. APG Asset Management N.V. lifted its holdings in shares of MGIC Investment by 2.4% in the 4th quarter. APG Asset Management N.V. now owns 7,646,600 shares of the insurance provider’s stock worth $69,968,000 after buying an additional 177,700 shares during the period. Finally, Macquarie Group Ltd. lifted its holdings in shares of MGIC Investment by 3.7% in the 4th quarter. Macquarie Group Ltd. now owns 6,961,011 shares of the insurance provider’s stock worth $72,813,000 after buying an additional 247,232 shares during the period. Institutional investors and hedge funds own 92.00% of the company’s stock.

MGIC Investment stock traded up $0.10 during mid-day trading on Friday, hitting $13.78. The company’s stock had a trading volume of 5,388,913 shares, compared to its average volume of 6,250,530. The company has a 50 day simple moving average of $13.69. The company has a market capitalization of $4.87 billion, a PE ratio of 7.74, a PEG ratio of 1.66 and a beta of 1.64. The company has a current ratio of 0.37, a quick ratio of 0.37 and a debt-to-equity ratio of 0.22. MGIC Investment has a one year low of $9.41 and a one year high of $14.97.

MGIC Investment (NYSE:MTG) last announced its quarterly earnings data on Tuesday, April 23rd. The insurance provider reported $0.42 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.38 by $0.04. The company had revenue of $291.65 million for the quarter, compared to the consensus estimate of $286.01 million. MGIC Investment had a return on equity of 19.06% and a net margin of 59.01%. MGIC Investment’s quarterly revenue was up 9.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.38 EPS. Analysts expect that MGIC Investment will post 1.65 earnings per share for the current fiscal year.

MGIC Investment declared that its Board of Directors has approved a stock buyback plan on Wednesday, March 20th that allows the company to repurchase $200.00 million in outstanding shares. This repurchase authorization allows the insurance provider to buy up to 4.3% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s leadership believes its stock is undervalued.

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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