MGIC Investment (MTG)

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MTG Stock Near 52-Week High: A Signal for Investors to Hold Tight?
ZACKS· 2025-10-03 14:26
Core Insights - MGIC Investment Corporation (MTG) shares closed at $27.75, close to its 52-week high of $29.01, indicating strong investor confidence and potential for further price appreciation [2] - The stock is trading above its 50-day and 200-day simple moving averages, suggesting solid upward momentum [2] Market Performance - MTG has a market capitalization of $6.39 billion, with an average trading volume of 2.18 million shares over the last three months [3] - Year-to-date, MTG shares have gained 17.1%, outperforming the Finance sector and the Zacks S&P 500 composite, which grew by 13.8% and 15.2%, respectively [4] Growth Drivers - MTG is expanding its insurance-in-force portfolio through strong new business and solid annual persistency [6] - The company is enhancing its capital position through capital contributions, reinsurance deals, and maintaining solid cash reserves [6] - Key growth drivers include higher premiums, excellent credit quality, and continued new business momentum [6] Valuation Metrics - MTG shares are trading at a price to forward 12-month earnings ratio of 9.09X, which is higher than the industry average of 8.85X [7] - The return on invested capital (ROIC) has been increasing, currently at 11.2%, significantly better than the industry average of 1.9% [8] Earnings Projections - The Zacks Consensus Estimate for MTG's 2025 earnings per share indicates a year-over-year increase of 3.4%, with revenues projected at $1.23 billion, reflecting a 0.9% improvement [9] - Earnings have grown by 12% over the past five years, surpassing the industry average growth of 9.8% [10] Analyst Sentiment - MTG has consistently surpassed earnings estimates in the last four quarters, with an average surprise of 14.12% [11] - One out of three analysts covering MTG has raised estimates for 2025, leading to a 2.7% increase in the consensus estimate over the past 60 days [12] Strategic Initiatives - New business and solid annual persistency are expected to drive the insurance-in-force portfolio, supported by higher home sales and improved refinance activity [13] - The company is improving its capital position through capital contributions and reinsurance transactions, with a solid cash position [14] - MTG has $742.2 million remaining in its share repurchase authorization through December 2026, reflecting strong mortgage credit performance [16] Conclusion - Higher premiums, outstanding credit quality, and new business are anticipated to drive growth for MGIC Investment [17] - The company’s solid growth projections and attractive valuations, along with optimistic analyst sentiment and favorable ROIC, are expected to benefit MTG in the long term [18]
Wall Street Closes September on a High Note, Dow Sets New Record Amid Looming Shutdown
Stock Market News· 2025-09-30 21:07
U.S. equity markets concluded Tuesday, September 30, 2025, on a positive note, with all three major indexes reversing earlier losses to finish in the green. This strong performance capped off a winning month and quarter for investors, despite the looming threat of a federal government shutdown at midnight Eastern Time. The Dow Jones Industrial Average notably achieved a new record high, underscoring a resilient market sentiment.Market Indexes Recap: A Strong Finish to SeptemberThe trading day saw a late-day ...
MGIC Investment Corporation Schedules 3rd Quarter 2025 Earnings Call
Prnewswire· 2025-09-30 20:05
Accessibility StatementSkip Navigation MILWAUKEE, Sept. 30, 2025 /PRNewswire/ --Â MGIC Investment Corporation (NYSE: MTG) has announced plans to release its third quarter 2025 financial results after the market closes on Wednesday, October 29, 2025. A conference call/webcast has been scheduled for 10:00 a.m. Eastern Time on Thursday, October 30, 2025, to discuss the Company's results for the quarter ended September 30, 2025. Individuals interested in joining by telephone should register for the call "here" ...
MGIC Investment (MTG) Could Be a Great Choice
ZACKS· 2025-09-10 16:46
Company Overview - MGIC Investment (MTG) is a mortgage insurance company headquartered in Milwaukee, operating in the Finance sector [3] - The stock has experienced a price change of 19.15% since the beginning of the year [3] Dividend Information - MGIC Investment currently pays a dividend of $0.15 per share, resulting in a dividend yield of 2.12%, which is higher than the Insurance - Multi line industry's yield of 1.71% and the S&P 500's yield of 1.51% [3] - The company's annualized dividend of $0.60 has increased by 22.4% from the previous year [4] - Over the past 5 years, MGIC Investment has raised its dividend 4 times, averaging an annual increase of 20.17% [4] - The current payout ratio is 17%, indicating that the company pays out 17% of its trailing 12-month EPS as dividends [4] Earnings Growth Expectations - For the fiscal year, MTG anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $3.01 per share, reflecting a 3.44% increase from the previous year [5] Investment Considerations - MGIC Investment is viewed as a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6] - The company is positioned well for income investors, especially in the context of rising interest rates, where high-yielding stocks may face challenges [6]
MTG Outperforms Industry, Hits 52-Week High: How to Play the Stock
ZACKS· 2025-09-01 15:36
Core Insights - MGIC Investment Corporation (MTG) has reached a 52-week high of $28.67, closing at $27.83, with a year-to-date gain of 17.4%, outperforming its industry and the S&P 500 composite [2] - The company has a market capitalization of $6.41 billion, with an average trading volume of 2.1 million shares over the last three months [3] - MTG is trading above its 50-day and 200-day simple moving averages, indicating strong upward momentum [4] Financial Performance - MTG is expanding its insurance-in-force portfolio through robust new business and high annual persistency [7] - The company has a price-to-book value of 1.25X, significantly lower than the industry average of 2.48X, making it an attractive entry point for investors [8] - The return on invested capital (ROIC) has improved to 11.2%, well above the industry average of 2% [9] - Earnings have grown by 12% over the past five years, surpassing the industry average of 9.8% [11] Growth Projections - The Zacks Consensus Estimate projects a 3.4% year-over-year increase in earnings per share for 2025, with revenues expected to reach $1.23 billion, reflecting a 0.9% increase [10] - Analysts have raised their estimates for 2025 and 2026, with the consensus for 2025 earnings moving up by 4.1% [13] Market Dynamics - New business and solid annual persistency are expected to drive growth, supported by increased home sales and refinancing activity [16] - The company is witnessing a decline in claim filings, which will strengthen its financial profile [16] - MTG is enhancing its capital position through capital contributions and reinsurance transactions, with $742.2 million remaining in its authorization for share repurchases through December 2026 [17] Strategic Outlook - Higher premiums, excellent credit quality, and new business are anticipated to continue driving growth for MGIC Investment [18] - The company engages in share buybacks as part of wealth distribution to shareholders, reflecting its capital strength and financial performance [18] - Optimistic analyst sentiment and favorable ROIC are expected to benefit MGIC Investment in the long term [19]
Why MGIC Investment (MTG) is a Great Dividend Stock Right Now
ZACKS· 2025-08-08 16:46
Company Overview - MGIC Investment (MTG) is a mortgage insurance company headquartered in Milwaukee, with a price change of 11.6% so far this year [3] - The company currently pays a dividend of $0.13 per share, resulting in a dividend yield of 2.27%, which is higher than the Insurance - Multi line industry's yield of 1.92% and the S&P 500's yield of 1.51% [3] Dividend Performance - The current annualized dividend of MGIC Investment is $0.60, reflecting a 22.4% increase from the previous year [4] - Over the past 5 years, MGIC has increased its dividend 4 times year-over-year, achieving an average annual increase of 20.17% [4] - The company's current payout ratio is 17%, indicating that it paid out 17% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for MGIC Investment's earnings in 2025 is $2.97 per share, representing a year-over-year earnings growth rate of 2.06% [5] - The company is viewed as an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [6]
MGIC Investment Corporation Receives Moody's Ratings Upgrades
Prnewswire· 2025-08-07 18:08
Core Viewpoint - MGIC Investment Corporation received upgrades from Moody's Ratings, reflecting its strong performance and financial stability [1][2]. Group 1: Ratings Upgrade - Moody's upgraded MGIC's senior unsecured debt rating to Baa2 from Baa3 [1]. - The insurance financial strength rating of MGIC's principal operating subsidiary, Mortgage Guaranty Insurance Corporation, was upgraded to A2 from A3 [1]. - The outlook for both ratings is stable [1]. Group 2: Rationale for Upgrade - The upgrades were based on MGIC's consistent performance, good net capital generation, and robust profitability and capital adequacy [2]. Group 3: Company Positioning - The CEO of MGIC expressed satisfaction with the upgrades, highlighting the company's market leadership and disciplined approach [3]. - MGIC aims to continue executing its business strategies and creating long-term value for stakeholders [3].
MGIC Investment Shares Gain 2.3% as Q2 Earnings Top Estimates
ZACKS· 2025-08-04 17:26
Core Viewpoint - MGIC Investment Corporation (MTG) reported strong second-quarter 2025 results, with operating net income per share of 82 cents, exceeding expectations and showing a year-over-year increase of 6.5% [1][7]. Financial Performance - Total operating revenues for MGIC Investment were $306 million, remaining flat year over year, and slightly missing the consensus estimate by 0.4% [2]. - The book value per share increased by 12.9% from the end of 2024 to $22.11 as of June 30, 2025 [5]. - Shareholder equity stood at $5.2 billion, a decrease of 0.3% from the end of 2024 [5]. - MGIC paid $400 million in dividends to the holding company and declared a dividend of 15 cents per share to be paid on August 21, 2025 [8]. Operational Metrics - Insurance in force rose by 1.9% year over year to $297 billion, falling short of the Zacks Consensus Estimate of $299 billion [3]. - Primary delinquency increased by 4.6% year over year to 24,444 loans [3][7]. - New insurance written reached $16.4 billion, marking a significant year-over-year increase of 21.5% [4][7]. - The loss ratio for the quarter was negative 1.2%, an improvement from negative 7.5% in the same quarter of the previous year [4]. Capital Management - MGIC repurchased 7.1 million shares for $180.7 million and has an additional share repurchase program authorized for up to $750 million [6]. - As of July 25, 2025, MGIC repurchased an additional 2.6 million shares for $68 million [6]. Industry Comparison - Other insurers like Prudential Financial, Everest Group, and Chubb Limited also reported positive results in Q2 2025, with adjusted operating incomes and total revenues beating consensus estimates [10][11][12].
MGIC Investment (MTG) - 2025 Q2 - Earnings Call Transcript
2025-07-31 14:32
Financial Data and Key Metrics Changes - The company recorded net income of $193 million and an annualized return on equity of 15% for the second quarter [5] - Adjusted net operating income was $0.82 per diluted share compared to $0.77 in the same period last year, while net income per diluted share increased to $0.81 from $0.77 [11] - Book value per share increased to $22.11, reflecting a 13% year-over-year growth [12] Business Line Data and Key Metrics Changes - The company wrote $16 billion of new insurance during the quarter, with insurance in force ending at $297 billion [5] - Annual persistency remained at 85%, with both insurance in force and annual persistency remaining relatively flat over the past two quarters [6] Market Data and Key Metrics Changes - The delinquency rate decreased by nine basis points to 2.21%, consistent with seasonal trends [13] - The company received 12,000 new delinquency notices, which is 5% higher than the second quarter of last year but 7% lower than 2019 [14] Company Strategy and Development Direction - The company focuses on maintaining financial strength and flexibility to navigate various economic scenarios, with a commitment to returning excess capital to shareholders through share repurchases and dividends [7][8] - The company has authorized a 15% increase in its quarterly common stock dividend to $0.15 per share, marking five consecutive years of dividend increases [9] Management Comments on Operating Environment and Future Outlook - The housing market faces challenges from elevated interest rates and affordability issues, but demographic trends and pent-up demand are expected to support long-term growth in mortgage insurance opportunities [9] - The company remains focused on disciplined risk management and strong underwriting standards to maintain a high-quality portfolio [6] Other Important Information - The company paid a quarterly common stock dividend of $0.13 per share, totaling $31 million, and repurchased 7.1 million shares for $181 million during the second quarter [7] - The unrealized loss position on the investment portfolio narrowed by $36 million due to a decrease in interest rates [17] Q&A Session Summary Question: Can you remind us how you are thinking about sizing the level of capital return? - The company has been paying dividends in the range of $300 to $400 million every six months, driven by excellent credit performance and financial results [24] Question: Could there be a case where you could increase the payout further? - The company is constrained by its contingency reserve balance, but as long as capital levels remain above targets, dividends at similar levels to previous years are expected [28][29] Question: Can you talk about your expectation for home prices? - National home prices are forecasted to be flat over the next several years, with different dynamics in various regions [33] Question: Does the OpEx guidance exclude the $4 million charge? - Yes, the $4 million charge is included in the Q2 number and the full-year guidance, with expectations for smaller charges in the future [37]
MGIC Investment (MTG) - 2025 Q2 - Earnings Call Transcript
2025-07-31 14:30
Financial Data and Key Metrics Changes - The company recorded net income of $193 million and an annualized return on equity of 15% for the second quarter [5] - Adjusted net operating income was $0.82 per diluted share compared to $0.77 in the same period last year, while net income per diluted share increased to $0.81 from $0.77 [12] - Book value per share increased to $22.11, reflecting a 13% year-over-year growth [12] Business Line Data and Key Metrics Changes - The company wrote $16 billion of new insurance during the quarter, with insurance in force ending at $297 billion [5] - Annual persistency remained at 85%, with both insurance in force and annual persistency remaining relatively flat over the past two quarters [6] Market Data and Key Metrics Changes - The housing market continues to face challenges from elevated interest rates and affordability issues, but demographic trends and pent-up demand are expected to support long-term growth in mortgage insurance opportunities [10] - Nationally, home price growth has moderated, with rising inventory in many markets, particularly in the South and West [10] Company Strategy and Development Direction - The company focuses on maintaining financial strength and flexibility to navigate various economic scenarios, with objectives including strong capital maintenance and a low to mid-teens debt to capital ratio [7] - The company is committed to returning excess capital to shareholders through share repurchases and dividends, with a 15% increase in quarterly common stock dividend to $0.15 per share [10] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the strong credit performance of the insurance portfolio, with disciplined risk management and strong underwriting standards being key drivers [6] - The company anticipates that if credit performance remains strong, capital levels will stay above targets, supporting elevated payout ratios [10] Other Important Information - The company has a remaining $734 million on its current share repurchase authorization and has repurchased 7.1 million shares for $181 million during the second quarter [9] - The unrealized loss position on the investment portfolio narrowed by $36 million, primarily due to a decrease in interest rates [19] Q&A Session Summary Question: How is the company sizing the level of capital return and the amount of Holdco liquidity? - Management indicated that dividends have been in the range of $300 to $400 million every six months, driven by excellent credit performance and financial results [26] Question: Could there be a case for increasing the payout further given strong capital generation? - Management noted that while there is enough statutory surplus to continue paying dividends, there is a natural limit to how much can be paid out over time [30] Question: What are the expectations for home prices and potential industry pricing adjustments? - Management expects national home prices to remain flat, with different dynamics in various regions, and emphasized the ability to price risk at a granular level [35][36] Question: Is the operating expense guidance inclusive of the $4 million pension charge? - Management confirmed that the $4 million charge is included in the operating expense guidance and that similar charges are expected in the future [39]