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MGIC Investment (MTG) Up 62.6% in a Year: More Room to Run?
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MGIC Investment Corporation’s (MTG - Free Report) shares have surged 62.6% in a year compared with the industry's growth of 27.3%. The Finance sector and the Zacks S&P 500 index have gained 26.1% and 27.7% in the said time frame, respectively.
With a market capitalization of $5.88 billion, the average volume of shares traded in the last three months was 2.1 million.
Image Source: Zacks Investment Research
The rally was largely driven by solid insurance in force, a decline in loss and claims payments, lower delinquency, better housing market fundamentals and prudent capital deployment.
This multi-line insurer carries a Zacks Rank #3 (Hold) at present. The company’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 14.84%.
Will the Bull Run Continue?
The Zacks Consensus Estimate for MGIC Investment’s 2025 earnings per share indicates a year-over-year increase of 4.2% from the consensus estimate of 2024. The consensus estimate for revenues is pegged at $1.30 billion, implying a year-over-year improvement of 4.6% from the consensus mark of 2024.
The Zacks Consensus Estimate for 2024 and 2025 earnings has moved 2.1% and 1.2% north, respectively, in the past 60 days, reflecting analysts’ optimism on the stock.
MGIC Investment has been witnessing an increase in new business written. The insurer expects new business, combined with increasing annual persistency, to result in the continued growth of the insurance-in-force portfolio.
MTG has been witnessing a declining pattern of claim filings. Thus, paid claims are likely to decrease further. A decline in loss and claims will strengthen the balance sheet and improve the insurer’s financial profile.
Banking on capital contribution, reinsurance transaction and cash position, this largest private mortgage insurer in the United States has been improving its capital position. Both leverage and times interest earned ratios have been improving.
The multi-line insurer has been seeing improving housing market fundamentals, such as household formations, home sales and the current capital status. As a result, the company will also be well-positioned to offer credit enhancement and low-down payment solutions to lenders, borrowers and government-sponsored enterprises. MTG remains optimistic about the opportunities in the housing market, which will enable the insurer to serve much more efficiently in the future.
Riding on a solid capital position, the company repurchased shares for $340.8 million and another $34 million through Jan 26, 2024. As of the same date, the company had $240 million remaining under a $500 million share repurchase program approved by the board in 2023, which will expire on Jul 1, 2025.
Consistent with the last quarter, the recent share repurchase activity reflects continued strong mortgage credit performance and financial results and share price valuation levels that are expected to generate long-term value for remaining shareholders.
Enact Holdings delivered a four-quarter average earnings surprise of 24.59%. In a year, shares of ACT have soared 33.9%.
The Zacks Consensus Estimate for ACT’s 2024 and 2025 earnings has moved up 0.7% and 1.5%, respectively, in the past 30 days.
The Zacks Consensus Estimate for CNO Financial’s 2024 and 2025 earnings implies year-over-year growth of 2.5% and 7.1%, respectively, from the consensus estimate of the corresponding years. In a year, shares of CNO have jumped 20.8%.
CNO’s earnings surpassed estimates in two of the last four quarters and missed in the other two, the average surprise being 3.62%.
Horace Mann’s earnings surpassed estimates in three of the last four quarters and matched in the one, the average surprise being 15.24%. In a year, shares of HMN have gained 7.9%.
The Zacks Consensus Estimate for HMN’s 2024 and 2025 earnings implies year-over-year growth of 104.5% and 19%, respectively, from the consensus estimate of the corresponding years.
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MGIC Investment (MTG) Up 62.6% in a Year: More Room to Run?
MGIC Investment Corporation’s (MTG - Free Report) shares have surged 62.6% in a year compared with the industry's growth of 27.3%. The Finance sector and the Zacks S&P 500 index have gained 26.1% and 27.7% in the said time frame, respectively.
With a market capitalization of $5.88 billion, the average volume of shares traded in the last three months was 2.1 million.
Image Source: Zacks Investment Research
The rally was largely driven by solid insurance in force, a decline in loss and claims payments, lower delinquency, better housing market fundamentals and prudent capital deployment.
This multi-line insurer carries a Zacks Rank #3 (Hold) at present. The company’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 14.84%.
Will the Bull Run Continue?
The Zacks Consensus Estimate for MGIC Investment’s 2025 earnings per share indicates a year-over-year increase of 4.2% from the consensus estimate of 2024. The consensus estimate for revenues is pegged at $1.30 billion, implying a year-over-year improvement of 4.6% from the consensus mark of 2024.
The Zacks Consensus Estimate for 2024 and 2025 earnings has moved 2.1% and 1.2% north, respectively, in the past 60 days, reflecting analysts’ optimism on the stock.
MGIC Investment has been witnessing an increase in new business written. The insurer expects new business, combined with increasing annual persistency, to result in the continued growth of the insurance-in-force portfolio.
MTG has been witnessing a declining pattern of claim filings. Thus, paid claims are likely to decrease further. A decline in loss and claims will strengthen the balance sheet and improve the insurer’s financial profile.
Banking on capital contribution, reinsurance transaction and cash position, this largest private mortgage insurer in the United States has been improving its capital position. Both leverage and times interest earned ratios have been improving.
The multi-line insurer has been seeing improving housing market fundamentals, such as household formations, home sales and the current capital status. As a result, the company will also be well-positioned to offer credit enhancement and low-down payment solutions to lenders, borrowers and government-sponsored enterprises. MTG remains optimistic about the opportunities in the housing market, which will enable the insurer to serve much more efficiently in the future.
Riding on a solid capital position, the company repurchased shares for $340.8 million and another $34 million through Jan 26, 2024. As of the same date, the company had $240 million remaining under a $500 million share repurchase program approved by the board in 2023, which will expire on Jul 1, 2025.
Consistent with the last quarter, the recent share repurchase activity reflects continued strong mortgage credit performance and financial results and share price valuation levels that are expected to generate long-term value for remaining shareholders.
Stocks to Consider
Some better-ranked stocks from the multi-line insurance industry are Enact Holdings (ACT - Free Report) , CNO Financial Group (CNO - Free Report) and Horace Mann Educators Corporation (HMN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Enact Holdings delivered a four-quarter average earnings surprise of 24.59%. In a year, shares of ACT have soared 33.9%.
The Zacks Consensus Estimate for ACT’s 2024 and 2025 earnings has moved up 0.7% and 1.5%, respectively, in the past 30 days.
The Zacks Consensus Estimate for CNO Financial’s 2024 and 2025 earnings implies year-over-year growth of 2.5% and 7.1%, respectively, from the consensus estimate of the corresponding years. In a year, shares of CNO have jumped 20.8%.
CNO’s earnings surpassed estimates in two of the last four quarters and missed in the other two, the average surprise being 3.62%.
Horace Mann’s earnings surpassed estimates in three of the last four quarters and matched in the one, the average surprise being 15.24%. In a year, shares of HMN have gained 7.9%.
The Zacks Consensus Estimate for HMN’s 2024 and 2025 earnings implies year-over-year growth of 104.5% and 19%, respectively, from the consensus estimate of the corresponding years.