MGIC Investment Hits 52-Week High, Outperforms Industry with 17.4% YTD Gains

MGIC Investment Corporation (MTG) hit a 52-week high of $28.67, outperforming the industry, sector, and Zacks S&P 500 composite. Shares gained 17.4% YTD, outperforming peers Enact Holdings, Horace Mann Educators Corporation, and Old Republic International Corporation. MTG has a capitalization of $6.41 billion and is trading above its 50-day and 200-day SMA, indicating solid upward momentum. Its price-to-book value of 1.25X is lower than the industry average, making it an attractive entry point for investors. MTG has a favorable return on capital and encouraging growth projection, with a 3.4% increase in earnings per share expected for 2025. Earnings have grown 12% in the past five years, better than the industry average of 9.8%.

MGIC Investment Corporation (MTG) has hit a 52-week high of $28.67, outperforming both the industry and the broader market. The stock has gained 17.4% year-to-date (YTD), significantly outperforming peers such as Enact Holdings, Horace Mann Educators Corporation, and Old Republic International Corporation. With a market capitalization of $6.41 billion, MTG is trading above both its 50-day and 200-day simple moving averages (SMAs), indicating solid upward momentum.

The company's price-to-book value ratio of 1.25X is lower than the industry average, making it an attractive entry point for investors. MTG boasts a favorable return on capital and an encouraging growth projection, with a 3.4% increase in earnings per share (EPS) expected for 2025. Over the past five years, earnings have grown at a rate of 12%, outperforming the industry average of 9.8%.

In the latest earnings report, MTG reported an EPS of $0.82, surpassing analyst expectations by $0.12. Revenue for the quarter was $304.25 million, slightly below the consensus estimate of $306.25 million. The company's return on equity was 14.73%, and its net margin was 62.58%. Despite a 0.3% year-over-year (YoY) decrease in revenue, the insurer demonstrated resilience with a 6.5% YoY increase in operating net income per share.

Insurance in force increased 1.9% from the prior-year quarter to $297 billion, while primary delinquency rose by 4.6% to 24,444 loans. Net premiums written increased 1.7% YoY to $237.4 million, and net investment income decreased 0.8% to $61 million. Persistency, the percentage of insurance remaining in force from one year prior, was 84.7% as of June 30, 2025, down from 85.4% the previous year. New insurance written was $16.4 billion, up 21.5% YoY.

Investor sentiment towards MTG remains positive, with institutional investors and hedge funds owning 95.58% of the stock. Corebridge Financial Inc., a major shareholder, reduced its position by 4.3% in the first quarter, but other large investors such as KBC Group NV, Cerity Partners LLC, GAMMA Investing LLC, PNC Financial Services Group Inc., and Allspring Global Investments Holdings LLC have increased their stakes. Wall Street analysts have also shown optimism, with several firms raising their price targets and giving the stock an "equal weight" or "market perform" rating.

In summary, MGIC Investment Corporation (MTG) has shown strong financial performance and growth prospects, making it an attractive investment opportunity. Its recent earnings report and positive analyst sentiment further support its upward trajectory.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-corebridge-financial-inc-sells-12274-shares-of-mgic-investment-corporation-mtg-2025-08-30/
[2] https://www.nasdaq.com/articles/mgic-mtg-69-last-earnings-report-can-it-continue