moneyheap
MTG · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is MGIC Investment Corporation (MTG) stock moving?
MGIC beat Q3 2026 estimates on both adjusted EPS ($0.85 vs $0.81) and sales ($299.08M vs $298.64M), with net income of $175.0M, and it also updated on reinsurance and buybacks. Despite the beat, the stock has faded since the Nov 5 earnings reaction: it hit an intraday high of $30.64 that day, then closed at $28.17 on Nov 10 on volume of about 2.6M, with 3.5M shares traded on Nov 9 during the decline. Analyst views are split: Barclays kept Equal-Weight and raised its target to $30 on Nov 6, while BofA kept a Sell and cut its target to $26 on Nov 9, below the current price. The 30-day range is roughly $27.29 to $30.64, and the stock has been drifting lower in recent sessions. The recent dividend of $0.17 per quarter adds some support, but the evidence is mixed and the stock has not confirmed a clear direction.
News behind the analysis
- BofA Securities Maintains Sell Rating and Lowers Price Target for MGIC Investment CorporationBofA Securities analyst Mihir Bhatia kept a Sell rating on MGIC and cut the price target from $28 to $26. The new target sits below the latest close of $28.17.
- Barclays Maintains Equal-Weight on MGIC Investment, Raises Price Target to $30Barclays kept its Equal-Weight rating on MGIC and raised its price target to $30. The move is a more constructive view than BofA's.
- MGIC Investment Q3 2026 Earnings Call TranscriptMGIC reported third-quarter results on Thursday, Nov 5, and the company's earnings call transcript was published. The transcript gives management's commentary behind the quarter's results.
- MGIC Investment Corporation Reports Third Quarter 2026 ResultsMGIC reported third-quarter 2026 net income of $175.0 million, or $0.85 per diluted share. The release also covered reinsurance transactions and share repurchases.
- MGIC Investment Q3 Adj. EPS $0.85 Beats $0.81 Estimate, Sales $299.080M Beat $298.639M EstimateAdjusted EPS of $0.85 beat the $0.81 consensus estimate, and sales of $299.08M edged past the $298.64M estimate. Both results were modest beats.
- Ahlsell Announces Public Tender Offer for Meier Tobler Group AGSwedish wholesaler Ahlsell launched a public tender offer for Meier Tobler at CHF 45.50 per share, which the target's board unanimously supports. This is an unrelated deal in a different sector.
- MGIC Investment Corporation Declares Quarterly Cash DividendMGIC declared a quarterly cash dividend of $0.17 per share, payable to holders of record in November 2026. At the latest close, that annualizes to roughly a 2.4% yield.
About MGIC Investment Corp.
MGIC Investment Corporation is a Milwaukee-based holding company. Its main subsidiary, Mortgage Guaranty Insurance Corporation, sells private mortgage insurance that lets home buyers get a mortgage with a down payment below 20%. MGIC started the modern private mortgage insurance industry nearly 70 years ago and is still one of its largest players. The company also returns a lot of cash to shareholders through big share buybacks and a quarterly dividend.
How it makes money
Most of its revenue comes from insurance premiums that borrowers pay on mortgages MGIC insures. These premiums are usually built into the monthly mortgage payment and continue until the borrower has enough equity in the home. The rest comes mostly from investment income on its bond portfolio. Trailing revenue is roughly $1.2 billion a year, and quarterly net income in 2026 has been about $165–182 million. To reduce risk, it passes part of its exposure to reinsurers through quota-share deals and insurance-linked notes.
What usually moves MTG
- Mortgage delinquencies and insurance claims
- Home prices and unemployment
- Mortgage origination volumes and interest rates
- How long existing policies stay in force (persistency)
- Capital rules and housing-finance policy, such as FHA pricing and the GSEs