MGIC Investment Corporation
 (MTG)

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  • Wed, Feb. 10, 3:02 PM
    • It's notoriously difficult to read anything into the weekly mortgage applications report from the MBA, as a weather event or timing of a holiday can throw things off.
    • Instead checking the year-over-year figures over a period of several weeks, Seeking Alpha contributor Markos Kaminis finds purchase applications averaging 20% growth so far in 2016, including a 25% Y/Y gain for the latest reported period.
    • A check of the price charts of a number of housing-related stocks - homebuilders, title companies, mortgage insurers - paints a far more depressing picture of real estate, and suggests investors may have a buying opportunity at hand.
    • Notable tickers: XHB, ITB, PHM, TOL, MTG, RDN, ITIC, FAF, FNF
    | Wed, Feb. 10, 3:02 PM | 6 Comments
  • Fri, Jan. 22, 8:57 AM
    • MGIC Investment (NYSE:MTG) tumbled yesterday following an inline Q4, but after announcing rate changes which should lead to slowing business.
    • BTIG's Mark Palmer, however, calls management's move a prudent one which should support profit margins. He notes the stock is down more than 42% over the past six months and selling for less than book value. "We could argue that the impact of the pricing competition within the PMI industry is already baked into the stock price."
    • He reiterates his Buy rating and $12 price target.
    • In addition to the pricing change, says Goldman's Eric Beardsley, management guided for slower credit improvement, and a lower-than-expected outlook for premiums. He pulls the stock from his company's Conviction Buy list, but it does remain a Buy with $10 price target.
    • MGIC closed yesterday at $6.36.
    | Fri, Jan. 22, 8:57 AM
  • Thu, Jan. 21, 8:04 AM
    • Q4 adjusted net income of $113.9M or $0.26 per share vs. $75.1M and $0.19 one year ago.
    • CEO Patrick Sinks says the company will be hiking rates, and thus writing somewhat less business this year (though the portfolio should still grow). He expects, however, that the new rates will result in life-time after tax returns in the mid-teens.
    • Q4 new insurance written of $9.8B up 3.1% from a year ago. Insurance in force of $174.5B up 5.8%. Primary delinquent loans of 62.633 down 21.6%. Annual persistency of 79.7% down from 82.8%. Consolidated risk-to-capital ratio of 13.6:1 from 16.4:1. GAAP loss ratio of 42% vs. 54.8%. GAAP underwriting expense ratio of 13.9% flat.
    • Earnings call at 10 ET
    • Previously: MGIC Investment EPS in-line, misses on revenue (Jan. 21)
    • MTG flat premarket
    | Thu, Jan. 21, 8:04 AM | 3 Comments
  • Thu, Jan. 21, 6:50 AM
    • MGIC Investment (NYSE:MTG): Q4 EPS of $0.26 in-line.
    • Revenue of $257.9M (+7.3% Y/Y) misses by $0.29M.
    • Press Release
    | Thu, Jan. 21, 6:50 AM | 1 Comment
  • Wed, Jan. 20, 5:30 PM
    | Wed, Jan. 20, 5:30 PM | 3 Comments
  • Wed, Jan. 13, 8:02 AM
    • WIth the stock having lost a third of its value since July, analyst Mark Palmer - who rates MTG a Buy with $12 price target (more than 50% above current level), says the Q4 earnings report offers management a golden opportunity to address - and hopefully dismiss - the concerns that led to the nosedive.
    • As for valuation, the stock trades at 1.21x book value - less than half the level at which it sold for prior to the financial crisis.
    • Results are due on Jan. 21, with consensus EPS at $0.29, but Palmers estimate at just $0.25.
    • Among the discussion items: Has management reset its 2016 expectations given the NAR's less-than-optimistic housing forecast? What is the current status of MTG's discussions with the FHFA regarding increased risk sharing? Has MTG been able to hold or boost market share in the face of competitive pressures in Q4?
    | Wed, Jan. 13, 8:02 AM
  • Dec. 8, 2015, 7:39 AM
    • MTG November primary new insurance written of $3B vs. $2.9B one year ago.
    • Ending primary delinquent inventory of 62,445 loans down from 64,156 at the start of the month and 80,125 a year ago.
    • Source: Press release
    | Dec. 8, 2015, 7:39 AM
  • Nov. 9, 2015, 8:29 AM
    • October new insurance written of $3.5B vs. $3.3B a year ago.
    • Ending primary delinquent inventory of 64,156 loans vs. 64,642 a month earlier and 82,369 a year ago.
    • MTG flat premarket
    | Nov. 9, 2015, 8:29 AM | 1 Comment
  • Oct. 27, 2015, 12:10 PM
    • The vastly improved credit performance at Radian (RDN -10.6%) may be old news at this point, and investors might be looking for more growth.
    • Speaking on the earnings call, CEO Sanford Ibrahim says he expects lower refinance business next year, but it should be offset by greater penetration in the new purchase area (MI is far more likely on purchases than refinances). Overall, he says, the market for mortgage insurance next year should be similar to 2015.
    • Webcast and presentation slides
    • Turning to the "high level" of competition, Ibrahim says his company "has opted not to compete" with certain discounts currently being offered. The decision has modestly hurt market share, he says, though quickly pointing out the company has been able to offset at least some of this.
    • MGIC Investment (MTG -6.4%), Genworth (GNW -4.5%), Essent Group (ESNT -2.9%), NMI Holdings (NMIH -2.2%)
    • Previously: More on Radian's Q3 miss (Oct. 27)
    • Previously: Radian Group misses by $0.05, beats on revenue (Oct. 27)
    | Oct. 27, 2015, 12:10 PM
  • Oct. 20, 2015, 3:11 PM
    • MGIC Insurance (MTG -4%) and Radian (RDN -4%) are both sharply lower with KBW noting talk of an FHA premium cut. Part of the bull case for the private mortgage insurers is the government's ceding of market share. Dropping rates isn't the sort of things done by entities interested in giving up business.
    • Also eyeing the news is Essent Group (ESNT -1.5%), and NMI Holdings (NMIH).
    • Previously: MGIC bull: Credit improvement is the story (Oct. 15)
    | Oct. 20, 2015, 3:11 PM | 7 Comments
  • Oct. 15, 2015, 11:12 AM
    • A loud profit number thanks to the DTA reversal and a big jump in new insurance written make for good headlines from MGIC Investment's (MTG +3.4%) earnings results this morning, says BTIG's Mark Palmer, but both had been expected.
    • The real story, he says, is the continuation in credit improvement - a 15.1% sequential decrease in losses to $76.5M, and a 19 basis point drop in the delinquency rate to 5.29%.
    • Over time, the next catalyst will be NIW growth as Uncle Sam cedes more of the mortgage insurance market to private insurers.
    • He reiterates his Buy rating, with $12 price target 20% above the current level.
    • Up in concert with MGIC is Radian (RDN +1%).
    • Previously: MGIC Investment up big after strong quarter (Oct. 15)
    • Previously: MGIC Investment beats by $0.08, beats on revenue (Oct. 15)
    | Oct. 15, 2015, 11:12 AM
  • Oct. 15, 2015, 7:30 AM
    • MGIC Investment (NYSE:MTG) earned a whopping $822.9M or $1.78 per share in Q3 thanks to a reversal in the company's DTA. Excluding this, earnings of $124.7M or $0.29 per share compared to $72M and $0.18 one year ago. The DTA move also boosted  book value per share by $2.23.
    • Turning to operations, NIW of $12.4B gained 19.5% Y/Y. insurance in force of $172.7B up 6.3%. Primary delinquent inventory of 64,642 loans fell 22.3%.
    • Annual persistency of 80% vs. 82.8% in Q2. Consolidated risk-to-capital ratio of 13.6:1 fell from 17:1. GAAP loss ratio dropped to 32% from 55.1%. GAAP underwriting expense ratio of 14.4% fell 50 basis points.
    • Conference call at 10 ET
    • Previously: MGIC Investment beats by $0.08, beats on revenue (Oct. 15)
    • Shares +4.8% premarket
    | Oct. 15, 2015, 7:30 AM
  • Oct. 15, 2015, 6:52 AM
    • MGIC Investment (NYSE:MTG): Q3 EPS of $0.29 beats by $0.08.
    • Revenue of $269.51M (+14.6% Y/Y) beats by $19.16M.
    | Oct. 15, 2015, 6:52 AM | 1 Comment
  • Oct. 14, 2015, 5:30 PM
    | Oct. 14, 2015, 5:30 PM | 8 Comments
  • Oct. 12, 2015, 9:55 AM
    • KBW upgrades MGIC Investment (MTG +2%) to Outperform from Market Perform. The $11.50 price target is nearly 20% above Friday's close.
    • Also maybe helping today, BTIG's Mark Palmer reiterates his Buy rating and $12 price target, telling investors to discount a near-term slowdown in NIW growth, and instead focus on a bigger-picture shift in which private mortgage insurers are set to assume a much larger share of U.S mortgage insurance business as the government steps back.
    | Oct. 12, 2015, 9:55 AM
  • Sep. 18, 2015, 11:38 AM
    • You wouldn't know it from the price action today, but at least two sell-side analysts came away impressed from presentations made by MGIC Investment (MTG -2.4%) and Radian (RDN -1.5%) at the Barclays financial services conference yesterday.
    • Compass Point's Amy DeBone says both were upbeat about NIW growth opportunities (Compass Point rates both Buys), with that being a long-term catalyst. Declining loss ratios should continue to be short-term catalysts for both.
    • Separately, Susquehanna's Jack Micenko also takes note of managements' optimism for deeper coverage.
    • MGIC presentation slides
    • Radian presentation slides
    | Sep. 18, 2015, 11:38 AM | 5 Comments
Company Description
MGIC Investment Corp through its wholly-owned subsidiaries is engaged in providing private mortgage insurance and ancillary services.