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MTG MGIC Investment

MGIC Investment Corp. is a private mortgage insurer that serves lenders throughout the United States, and Puerto Rico. It also provides lenders with underwriting and other services and products related to home mortgage lending through its subsidiaries, such as Mortgage Guaranty Insurance Corp. and MGIC Indemnity Corp. The company was founded by Max Karl in 1957 and is headquartered in Milwaukee, WI.

Company profile

Ticker
MTG
Exchange
Website
CEO
Timothy Mattke
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
SEC CIK
IRS number
391486475

MTG stock data

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Calendar

5 May 21
27 Jul 21
31 Dec 21
Quarter (USD)
Mar 21 Dec 20 Sep 20 Jun 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 192.77M 192.77M 192.77M 192.77M 192.77M 192.77M
Cash burn (monthly) 34.64M 14.73M (positive/no burn) (positive/no burn) (positive/no burn) (positive/no burn)
Cash used (since last report) 134.5M 57.2M n/a n/a n/a n/a
Cash remaining 58.26M 135.57M n/a n/a n/a n/a
Runway (months of cash) 1.7 9.2 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
16 Jul 21 Maggio Paula C Common Stock Payment of exercise Dispose F No No 13.65 2,954 40.32K 239,138
30 Jun 21 Gary A. Poliner Share Units Common Stock Grant Aquire A No No 13.66 661.765 9.04K 134,663.159
30 Jun 21 Jodee A Kozlak Share Units Common Stock Grant Aquire A No No 13.66 980.392 13.39K 23,845.585
27 May 21 Daniel A. Arrigoni Share Units Common Stock Grant Aquire A No No 0 33.392 0 8,058.616
27 May 21 Analisa M Allen Share Units Common Stock Grant Aquire A No No 0 50.142 0 12,101.082

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

98.8% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 316 321 -1.6%
Opened positions 41 67 -38.8%
Closed positions 46 46
Increased positions 87 100 -13.0%
Reduced positions 135 111 +21.6%
13F shares
Current Prev Q Change
Total value 4.62B 4.43B +4.2%
Total shares 335.25M 353.34M -5.1%
Total puts 609.9K 335.4K +81.8%
Total calls 1.22M 1.35M -9.7%
Total put/call ratio 0.5 0.2 +101.5%
Largest owners
Shares Value Change
Vanguard 35.38M $489.97M +3.4%
BLK Blackrock 31.35M $434.26M +3.2%
Wellington Management 28.54M $395.32M +2.3%
FMR 24.57M $340.24M +8.5%
Goldman Sachs & Co 19.45M $244.05M 0.0%
GS Goldman Sachs 14.75M $204.29M -42.4%
STT State Street 12.31M $170.43M +1.7%
LSV Asset Management 9.62M $133.18M -6.0%
Natixis 6.52M $90.24M +4.4%
BNS Bank Of Nova Scotia 6.02M $83.37M +36.6%
Largest transactions
Shares Bought/sold Change
GS Goldman Sachs 14.75M -10.84M -42.4%
Norges Bank 0 -6.15M EXIT
Vaughan Nelson Investment Management 0 -3.02M EXIT
Capital International Investors 3.1M +2.44M +368.1%
FMR 24.57M +1.92M +8.5%
BNS Bank Of Nova Scotia 6.02M +1.61M +36.6%
Senator Investment 1M -1.6M -61.5%
Rubric Capital Management 1.52M +1.52M NEW
Dimensional Fund Advisors 4.78M +1.36M +39.7%
Millennium Management 27.69K -1.28M -97.9%

Financial report summary

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Competition
Arch CapitalNMI
Risks
  • The COVID-19 pandemic may continue to materially impact our financial results and may also materially impact our business, liquidity and financial condition.
  • Downturns in the domestic economy or declines in home prices may result in more homeowners defaulting and our losses increasing, with a corresponding decrease in our returns.
  • We may not continue to meet the GSEs’ private mortgage insurer eligibility requirements and our returns may decrease if we are required to maintain more capital in order to maintain our eligibility.
  • Because we establish loss reserves only upon a loan delinquency rather than based on estimates of our ultimate losses on risk in force, losses may have a disproportionate adverse effect on our earnings in certain periods.
  • Because loss reserve estimates are subject to uncertainties, paid claims may be substantially different than our loss reserves.
  • The amount of insurance we write could be adversely affected if lenders and investors select alternatives to private mortgage insurance.
  • Changes in the business practices of the GSEs, federal legislation that changes their charters or a restructuring of the GSEs could reduce our revenues or increase our losses.
  • Reinsurance may not always be available or affordable.
  • We are subject to comprehensive regulation and other requirements, which we may fail to satisfy.
  • If the volume of low down payment home mortgage originations declines, the amount of insurance that we write could decline.
  • State capital requirements may prevent us from continuing to write new insurance on an uninterrupted basis.
  • We are susceptible to disruptions in the servicing of mortgage loans that we insure and we rely on third-party reporting for information regarding the mortgage loans we insure.
  • Changes in interest rates, house prices or mortgage insurance cancellation requirements may change the length of time that our policies remain in force.
  • Pandemics, hurricanes and other natural disasters may impact our incurred losses, the amount and timing of paid claims, our inventory of notices of default and our Minimum Required Assets under PMIERs.
  • The premiums we charge may not be adequate to compensate us for our liabilities for losses and as a result any inadequacy could materially affect our financial condition and results of operations.
  • Competition or changes in our relationships with our customers could reduce our revenues, reduce our premium yields and / or increase our losses.
  • We are involved in legal proceedings and are subject to the risk of additional legal proceedings in the future.
  • If our risk management programs are not effective in identifying, or adequate in controlling or mitigating, the risks we face, or if the models used in our businesses are inaccurate, it could have a material adverse impact on our business, results of operations and financial condition.
  • We rely on our management team and our business could be harmed if we are unable to retain qualified personnel or successfully develop and/or recruit their replacements.
  • The mix of business we write affects our Minimum Required Assets under the PMIERs, our premium yields and the likelihood of losses occurring.
  • Our holding company debt obligations materially exceed our holding company cash and investments.
  • Your ownership in our company may be diluted by additional capital that we raise or if the holders of our outstanding convertible debt convert that debt into shares of our common stock.
  • The price of our common stock may fluctuate significantly, which may make it difficult for holders to resell common stock when they want or at a price they find attractive.
  • We could be adversely affected if personal information on consumers that we maintain is improperly disclosed, our information technology systems are damaged or their operations are interrupted, or our automated processes do not operate as expected.
  • Our success depends, in part, on our ability to manage risks in our investment portfolio.
  • The Company may be adversely impacted by the transition from LIBOR as a reference rate.
Management Discussion
  • We recorded first quarter 2021 net income of $150.0 million, or $0.43 per diluted share. Net income increased by $0.2 million from net income of $149.8 million in the prior year primarily reflecting a decrease in losses incurred, net, partially offset by higher other underwriting and operating expenses, net, lower net premiums earned, higher interest expense and lower investment income, net of expenses.
  • Diluted income per share increased slightly due a decrease in the number of diluted weighted average shares outstanding and an increase in net income. Adjusted net operating income for the first quarter 2021 was $148.0 million (Q1 2020: $147.5 million) and adjusted net operating income per diluted share was $0.42 (Q1 2020: $0.42).
  • Net premiums earned declined as a result of lower net premiums written, partially offset by an increase in accelerated premiums earned from single premium policy cancellations. The decrease in net premium written during the first quarter of 2021 was due to an increase in ceded premiums written and lower average premium rates on our insurance in force. These impacts were partially offset by higher average insurance in force.
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