Will housing headwinds flatten home sales?

Will housing headwinds flatten home sales?

Auction.com: Market maintaining current momentum

Wilbur Ross quits Ocwen Financial

Distressed asset investor bringing his magic to Bank of Cyprus

Dustin Johnson levels blockbuster claims at title attorneys

Is Nat Hardwick the fall guy?
W S
Investments / The Ticker

Massive growth predicted for Radian, MGIC

Cash pile

It seems that more than just private mortgage insurers themselves are expecting a big year for the industry.

On Wednesday, Bradley Shuster, president and CEO of NMI Holdings, Inc. (NMIH), the parent company of National Mortgage Insurance Corp., told a group of investors that a recovery in the housing market and the high cost of FHA mortgage insurance could lead to a boost in business for private mortgage insurers.

Maverick Capital has joined Shuster in predicting a lucrative year for private mortgage insurers. Maverick has established a new stock price target for Radian Group (RDN) of $26.20. The company’s stock closed Thursday at $14.31.

Maverick is also predicting a big year for fellow private mortgage insurer MGIC Investment Corp. (MTG). Maverick has established a new stock price target for MGIC of $16.50. MGIC closed Thursday at $8.28.

The predictions can’t come as big shock considering that both companies reported big profits in the first quarter. Radian’s net income for the first quarter was $203 million and MGIC’s net income was $60 million

Recent Articles by Ben Lane

Comments powered by Disqus