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MGIC Investment Corporation (MTG) Stock Analysis

Falling Knife setup

SellVALUE-TRAP 1/5Moderate Confidence

Financial Services · Insurance - Specialty

Sell if holding. Analyst target reached at $26.32 — A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: GSEs.

MGIC Investment provides private mortgage insurance (PMI), credit risk management, and ancillary services through wholly-owned subsidiaries including Mortgage Guaranty Insurance Corporation (MGIC). In 2025, primary NIW was $60.2B with $303.1B direct IIF and $1.2B total revenues.... Read more

$26.32+9.9% A.UpsideScore 4.9/10#9 of 10 Insurance - Specialty
Stop $25.41Target $28.94(resistance)A.R:R -0.8:1
Analyst target$29.00+10.2%6 analysts
$28.94our TP
$26.32price
$29.00mean
$30

Sell if holding. Analyst target reached at $26.32 — A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: GSEs. Chart setup: Death cross, below all MAs, RSI 39, MACD bearish. Score 4.9/10, moderate confidence.

Passes 4/6 gates (clean insider activity, no SEC red flags, earnings proximity 89d clear, semi cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.

Thesis

Rewards
Strong earnings beat streak (3/4)
High-quality business
Margin of safety: 44%
Risks
Concentration risk — Customer: GSEs
Analyst target reached - limited upside remaining
Weak overall score: 4.9/10

Key Metrics

P/E (TTM)8.4
P/E (Fwd)7.9
Mkt Cap$5.6B
EV/EBITDA6.4
Profit Mgn59.6%
ROE14.1%
Rev Growth-3.0%
Beta
Dividend2.27%
Rating analysts12

Quality Signals

Piotroski F7/9

Options Flow

P/C0.50bullish
IV81%elevated
Max Pain$20-24.0% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHCustomerGSEs
    10-K Item 1A: 'The substantial majority of our new insurance written ("NIW") is for loans purchased by the GSEs'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Volume
0.0
Macd
0.7
Obv
1.0
Ma Position
2.2
Rsi
3.5
Volume distribution (falling OBV)Below 200-MA but MA still rising (+0.5%/30d) — pullback in uptrend, not confirmed weakness

Revenue shrinking — -3.0% YoY. Growth thesis broken unless recovery story develops.static

Revenue Growth
1.8
Earnings Growth
2.3
Declining revenue: -3%
GatesMomentum 1.5<4.5A.R:R -0.8=NEGATIVEInsider activity: OKNo SEC red flagsEARNINGS PROXIMITY 89d clearSEMI CYCLE PEAK CLEARFalling KnifeSuitability: Moderate
RSI
39 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $26.20Resistance $29.53

Price Targets

$25
$29
A.Upside+10.0%
A.R:R-0.8:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! Target reached (-4.2% upside)
! Momentum score 1.5/10 — below 4.5 minimum
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-07-29 (89d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is MTG stock a buy right now?

Sell if holding. Analyst target reached at $26.32 — A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: GSEs. Chart setup: Death cross, below all MAs, RSI 39, MACD bearish. Prior stop was $25.41. Score 4.9/10, moderate confidence.

What is the MTG stock price target?

Take-profit target: $28.94 (+9.9% upside). Prior stop was $25.41. Stop-loss: $25.41.

What are the risks of investing in MTG?

Concentration risk — Customer: GSEs; Analyst target reached - limited upside remaining; Weak overall score: 4.9/10.

Is MTG overvalued or undervalued?

MGIC Investment Corporation trades at a P/E of 8.4 (forward 7.9). TrendMatrix value score: 6.4/10. Verdict: Sell.

What do analysts say about MTG?

12 analysts cover MTG with a consensus score of 2.5/5. Average price target: $29.

What does MGIC Investment Corporation do?MGIC Investment provides private mortgage insurance (PMI), credit risk management, and ancillary services through...

MGIC Investment provides private mortgage insurance (PMI), credit risk management, and ancillary services through wholly-owned subsidiaries including Mortgage Guaranty Insurance Corporation (MGIC). In 2025, primary NIW was $60.2B with $303.1B direct IIF and $1.2B total revenues. The vast majority of NIW insures loans purchased by Fannie Mae and Freddie Mac.

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