MTG Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
MGIC Investment Corp (MTG) is not a strong buy at the moment for a beginner investor with a long-term focus. The stock lacks significant positive catalysts, and its financial performance shows a decline in revenue and net income. While technical indicators are neutral to slightly positive, the lack of strong trading signals and hedge fund selling trends suggest a cautious approach. Holding the stock or waiting for better entry points is recommended.
The MACD is positive and expanding, indicating a slight bullish momentum. RSI is neutral at 59.761, and moving averages are converging, showing no clear trend. The stock is trading near its resistance level of R1: 27.657, with a pivot at 26.74.
EPS increased by 4.17% YoY in Q4 2025, showing some profitability improvement. Gross margin remained stable.
Hedge funds are selling heavily, with an 804.05% increase in selling activity last quarter. Analysts recently lowered the price target from $30 to $28, citing weaker earnings and lower reserve releases.
In Q4 2025, revenue declined to $298.65M (-0.93% YoY), and net income dropped to $169.31M (-8.33% YoY). However, EPS improved to 0.75 (+4.17% YoY).
Barclays lowered the price target from $30 to $28 and maintained an Equal Weight rating due to weaker earnings and lower reserve releases. Previously, analysts were more optimistic, with Keefe Bruyette raising the price target to $28 in December 2025, citing double-digit book value growth potential.
