It has been about a month since the last earnings report for MGIC Investment (MTG Quick QuoteMTG - Free Report) . Shares have added about 6.9% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is MGIC due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

MGIC Investment Shares Gain 2.3% as Q2 Earnings Top Estimates

Shares of MGIC Investment gained 2.3% in the last three trading session as the insurer’s bottom line beat expectations. MTG reported second-quarter 2025 operating net income per share of 82 cents, which beat the Zacks Consensus Estimate by 17.1%. Moreover, the bottom line increased 6.5% year over year.

MGIC Investment recorded total operating revenues of $306 million, which remained flat year over year on higher net investment income, other revenues and premiums earned. The top line missed the consensus mark by 0.4%.

Operational Update

Insurance in force increased 1.9% from the prior-year quarter to $297 billion, which missed the Zacks Consensus Estimate of $299 billion.

The insurer witnessed a 4.6% year-over-year increase in primary delinquency to 24,444 loans.

Net premiums written increased 1.7% year over year to $237.4 million. The figure was higher than our estimate of $230.9 million.

Net investment income decreased 0.8% year over year to $61 million. Our estimate was $67.3 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% reported in the year-ago quarter.

New insurance written was $16.4 billion, up 21.5% year over year. Our estimate was $13.2 billion.

Net underwriting and other expenses totaled $52.1 million, down 5% year over year.

For the quarter under review, the loss ratio was negative 1.2% compared with negative 7.5% in the second quarter of 2024.

Financial Update

Book value per share, a measure of net worth, increased 12.9% from 2024-end to $22.11 as of June 30, 2025.

Shareholder equity was $5.2 billion as of June 30, 2025, down 0.3% from 2024-end.

MGIC's PMIERs available assets totaled $5.7 billion, or $2.4 billion above its Minimum Required Assets as of June 30, 2025.

Assets were $6.5 billion as of June 30, 2024, down 0.1% from the 2024-end level. Debt was $645 million as of June 30, 2025, which increased 0.1% from the 2024-end level.

Capital Deployment

MGIC Investment repurchased 7.1 million shares worth $180.7 million
In April 2025, the board approved an additional share repurchase program that authorized it to purchase up to $750 million of shares prior to Dec. 31, 2027.

Through July 25, 2025, MTG repurchased an additional 2.6 million shares for $68 million of holding company cash.

MGIC Investment paid $400 million in dividends to the holding company and 13 cents per share to shareholders in the second quarter. The board also declared a dividend of 15 cents per share to shareholders to be paid on Aug. 21, 2025, to shareholders of record as of Aug. 7, 2025.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, MGIC has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

MGIC has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.