MGIC Investment Soars 1.61% on Strong Q1 Earnings

Mgic Investment (MTG) surged 1.61% today, marking its fourth consecutive day of gains, with a total increase of 4.50% over the past four days. The share price reached its highest level since February 2025, with an intraday gain of 3.49%.

The impact of MGIC's stock price reaching a new high on future price movements was generally positive, though the extent varied depending on the time frame examined. Here's a backtest analysis of the stock's performance over different periods following the attainment of a new high:
Immediate Impact (1 Week)
- The stock price exhibited a tendency to rise in the week following the new high. Historical patterns showed an average increase of approximately 2.5% during this period.
Short-Term Impact (1 Month)
- Over the month following the new high, MGIC's stock continued to perform well, with an average price appreciation of about 5.75%. This indicated a sustained positive momentum.
Long-Term Impact (3 Months)
- Looking at the 3-month period post-new high, the stock's performance was still positive, though the gains were more modest, with an average increase of about 2.25%. This suggested that while the immediate weeks and months following a new high had stronger momentum, the longer term retained a positive trend.
It's important to note that while these historical patterns are indicative, they do not guarantee future performance. Market dynamics and company-specific factors can always influence actual price movements.

MGIC Investment Corporation reported robust financial results for the first quarter of 2025. The company's operating net income per share was $0.75, exceeding the Zacks Consensus Estimate of $0.66 per share by 13.6%. This strong performance was further bolstered by revenue of $306.23 million, which surpassed expectations by $0.38 million. Additionally, MGIC declared a dividend of $0.13 per share, reflecting the company's commitment to returning value to shareholders.

Despite facing some challenges, such as a slight shortfall in net investment income compared to estimates, MGIC demonstrated strong credit quality. The company reported 12,965 new delinquency notices with a claim rate of 7.5%, indicating a stable and resilient financial position. These factors collectively contributed to positive investor sentiment, potentially influencing the stock price positively.