MGIC Investment Corp. (NYSE:MTG) Rides The Wave On Its Strong 3Q Results


Dallas, Texas 10/25/2013 (Financialstrend) – MGIC Investment Corp. (NYSE:MTG) is a premier property and casualty insurance firm which in the recent years has taken on the role of market bell weather for small capped insurance firms. Last week the company announced what analysts have termed surprisingly strong results from its 3Q operations. This strong showing helped the $2.77 billion market capped company post a 13.89% increase in market value over the previous month. The stock rally can be traced back to even earlier times as it has shown a 52% growth during trading over the past 180 days. The stock has managed to retain and sustain investor interest since the stock was priced below its actual potential. This can be gauged by the fact that current pricing is indicative of 477% increase in value over its 52 week low pricing.

The current market rally has taken the share price of the stock close to its 52 week high pricing. As of close of business on October 24, the stock was trading at $8.2 per share, a 2.12% increase over its previous day close.  Investors who bought into the stock one year back are today sitting on a windfall appreciation of 305% in their net asset value.

These kind of returns have promoted other “mortgage insurance companies” are chomping at their bits to enter the trading arena via initial public offerings. “NMI Holdings, Kyle Bass, and Blue Mountain” are few of those likely companies which are all set to test the IPO waters. Some of the above have already submitted S-1 forms with SEC.

The reinsurance company has managed to post sales of $1.2 billion and managed to post net loss of $694 million. In its third quarter it was able to show an 102% increase in its earnings per share which were duly noted by the investors.