Form 4: MGIC CEO Sells Shares Under 10b5-1 Plan

MGIC Investment Corp's CEO, Timothy J. Mattke, sold 139,203 shares of common stock for approximately $3.69 million under a pre-arranged 10b5-1 trading plan.

Summary

• Timothy J. Mattke, Chief Executive Officer and Director of MGIC Investment Corp (MTG), sold 139,203 shares of common stock.
• The transaction occurred on August 7, 2025, at a weighted average price of $26.5367 per share.
• The total value of the shares sold is approximately $3,693,690.74.
• This sale was executed pursuant to a Rule 10b5-1 trading plan, which Mr. Mattke adopted on May 6, 2025.
• Following this transaction, Mr. Mattke directly beneficially owns 1,100,994.401 shares of MGIC common stock.
• The shares were sold in multiple transactions with prices ranging from $26.38 to $26.96, inclusive.

Sentiment

Score: 6

Explanation: The sale by the CEO is a neutral event given it was executed under a pre-arranged 10b5-1 plan, which is a common practice for executive liquidity and diversification. The CEO retains a substantial stake, mitigating negative sentiment.

Positives

• The sale was conducted under a pre-arranged Rule 10b5-1 trading plan, indicating a planned and not reactive transaction, which typically mitigates concerns about insider selling.
• The CEO retains a significant beneficial ownership of over 1.1 million shares, demonstrating continued alignment with shareholder interests.

Negatives

• A sale of shares by a key executive, even under a 10b5-1 plan, could be perceived negatively by some investors, potentially raising questions about future outlook, though this is largely mitigated by the pre-planned nature.

Future Outlook

No forward-looking statements or guidance regarding the company's future performance or strategic direction are provided.

Management Comments

• The reporting person undertakes to provide MGIC Investment Corporation, any security holder of MGIC Investment Corporation, or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the range set forth in this footnote.

Industry Context

Insider sales, particularly by top executives, are common occurrences across all industries. Sales executed under Rule 10b5-1 plans are generally viewed as less indicative of management's immediate sentiment about the company's prospects compared to unplanned sales, as they are pre-scheduled to avoid accusations of trading on material non-public information. This is a standard disclosure for executive compensation and liquidity management.

Stakeholder Impact

• Shareholders: The sale could be interpreted differently; some might see it as a routine liquidity event, while others might view it as a slight negative signal, though largely mitigated by the 10b5-1 plan. The CEO's continued significant ownership aligns interests.

Next Steps

• The reporting person has undertaken to provide additional details on the share sales within the specified price range upon request from MGIC Investment Corporation, its security holders, or the SEC staff.

Key Dates

Recommendation

This Form 4 filing details a routine insider sale by the CEO under a pre-arranged 10b5-1 plan. Such sales are typically for personal financial planning and diversification and do not inherently signal a change in the company's fundamental outlook. The CEO retains a substantial ownership stake. Therefore, this specific filing does not provide new information that would warrant a change in investment thesis, suggesting a 'hold' recommendation for existing investors.

Keywords

MGIC Investment Corp, MTG, Timothy J. Mattke, Insider Sale, Form 4, 10b5-1 Plan, CEO, Stock Sale, Beneficial Ownership