What has Caused MGIC (MTG) to Increase 3.2% Following Last Earnings Report?

experienced a 0.72% increase in its stock price, while MGIC Investment Corp (MTG) has seen a positive trend with a 3.2% rise since the last earnings report. The question on everyone’s mind is whether this upward trend will continue leading up to the next earnings release, or if MGIC is due for a pullback.

After MGIC Investment Corporation reported its third-quarter 2025 earnings, it was noted that the operating net income per share of 83 cents surpassed the Zacks Consensus Estimate by 15.2%. Additionally, the bottom line saw a 7.8% increase year over year. The quarterly results were driven by higher insurance in force, primary delinquency inventory, and improved net investment income, although they were partially offset by lower Persistency and new insurance written.

Total operating revenues for MGIC Investment amounted to $304 million in the third quarter of 2025, showing a 0.6% decline year over year primarily due to lower premiums earned and other revenue. Despite the decrease, the top line still fell short of the Zacks Consensus Estimate.

In terms of operational updates, insurance in force experienced a 2.7% increase from the previous year to $300.8 billion. Primary delinquency also saw a 2.6% rise to 25,747 loans. Net premiums written grew by 0.5% year over year to $235.2 million, while net investment income also saw an increase. However, Persistency decreased to 85% compared to the previous year, and new insurance written declined by 4% year over year.

Financially, MGIC Investment’s book value per share increased by 10.7% year over year to $22.87 as of September 30, 2025. Shareholder equity, however, saw a 2.3% decrease from the end of 2024. The company’s PMIERs Available Assets were $5.9 billion, which was $2.5 billion above its Minimum Required Assets as of September 30, 2025.

Capital deployment by MGIC Investment involved the repurchase of 7 million shares in the third quarter for $187.9 million. Additionally, in the twelve months leading up to September 30, 2025, the company paid $800 million in dividends to the holding company. Further shares were repurchased through October 24, 2025, and a dividend of 15 cents per share was declared to shareholders.

Despite the positive trends seen in the third quarter, estimates for MGIC have been trending downward in the past month. With a Zacks Rank #2 (Buy), it is expected that the stock will have an above-average return in the coming months.

MGIC Investment Corporation is part of the Zacks Insurance – Multi line industry, where Everest Group (EG) has also shown slight growth in its stock performance. As investors wait for the next earnings release, all eyes are on MGIC to see if it can maintain its positive trajectory.