Regulated electric utilities typically anchor retirement portfolios with steady income. Right now, three large-cap names are trading with unusual volatility: Edison International (NYSE: EIX | EIX Price Prediction), Eversource Energy (NYSE: ES), and PG&E (NYSE: PCG) all sit well below 52-week highs, trail the S&P 500 over the past month, and carry visible overhangs that have pushed valuations to single-digit or low-teens earnings multiples.
For income-focused investors, the question is which stock offers the best risk-adjusted dip-buy. We rank them on five tests: how much the dip reflects known risks, valuation relative to the regulated utility group, dividend yield and coverage, balance-sheet flexibility, and embedded growth from rate base and load. We count down from worst to best.
3. Eversource Energy: Slow Turnaround, Still Diluting Eversource is the cleanest regulated story after exiting offshore wind and selling Aquarion, improving its funds from operations (FFO)-to-debt ratio by over 400 basis points at Moody’s and 300 basis points at S&P over the prior 12 months. The market has yet to reward that work. Shares trade around $67.02, down 2.4% over the past month and essentially flat year-to-date, against a 52-week high of $72.08.
Q4 2025 GAAP EPS came in at $1.12 versus $1.14 estimates, and full-year 2025 non-GAAP EPS of $4.76 compared with the $4.74 estimate. Storm costs are still under prudency review, and management plans an $800 million to $1.1 billion equity raise through 2030 to fund a $26.5 billion five-year capital plan.
Valuation is fair at a 14x trailing P/E and 14x forward, with dividend yield near 4.7% and the quarterly payout lifted to $0.7875 in Q1 2026. Guidance for 2026 EPS of $4.80 to $4.95 and 5% to 7% long-term growth is solid, but dilution ahead and unresolved storm costs limit upside.
2. Edison International: Wildfire Reset With a 22-Year Dividend Streak Edison trades at $69.39, off 1.9% over the past month, with a 52-week range of $47.73 to $76.22. The overhang is the Eaton Fire, where Southern California Edison has extended roughly 1,500 settlement offers totaling more than $500 million and acknowledged its equipment was likely associated with ignition.
Against that sits a strong operating story. Q1 2026 core EPS of $1.42 beat the $1.33 estimate on revenue of $4.10 billion, up 7.7% year over year. Management guides 5% to 7% core EPS CAGR through 2030, backed by a $38 to $41 billion capital plan, around 7% rate base growth and no new equity through 2030.
Valuation is striking: a trailing P/E of 8 and forward P/E of 11, with a 5.1% dividend yield and a 22nd consecutive year of dividend growth at a $0.8775 quarterly rate. Analyst consensus target is $75.61. The setup looks attractive for investors who can tolerate headline risk on Eaton settlement disclosures.
1. PG&E: Cheapest Stock, Biggest Growth Algorithm PG&E is the deepest dip and the best risk-adjusted setup. Shares trade near $16.20, down 6.2% over the past month and 9.4% over the past year. This weakness comes despite strong Q1 2026: core EPS of $0.43 versus $0.33 a year earlier on revenue of $6.88 billion, with wildfire-related non-core charges shrinking to $3 million after tax.
The growth algorithm is the highest in the group. Management guides 2026 non-GAAP core EPS of $1.64 to $1.66 and 9%+ annual EPS growth from 2027 through 2030, supported by a $73 billion five-year capital plan, roughly 9% rate base CAGR reaching about $106 billion by 2030, and no common equity issuance through 2030. The data center pipeline in final engineering expanded to about 1.6 GW, with a total 10 GW pipeline, and Diablo Canyon’s NRC license was renewed on April 2, 2026, for 20 more years.
Valuation is the differentiator: a forward P/E of 10, price-to-book of 1.1, and analyst consensus target of $22.72 against 14 buy or strong-buy ratings versus 4 holds. For income investors, the dividend is just 0.89% yield today, though the quarterly payout doubled to $0.05 in Q4 2025 and management targets a 20% payout ratio by 2028.
The Verdict PG&E wins on growth and price-to-earnings, with wildfire framework materially improved under SB 254’s $18 billion Continuation Account and clean equity outlook. Edison offers the highest yield for investors willing to underwrite Eaton Fire headlines in exchange for single-digit P/E and a 22-year dividend streak. Eversource is the safest operating story but already priced for slow growth, with dilution ahead. For retirement-focused income investors, PG&E offers the steepest discount relative to forward earnings power, Edison offers the most yield per unit of valuation, and Eversource is the most defensive but least asymmetric.
On May 29, 2026, Coherent Corp (COHR) shares fell 4.1% to $361.47. This decline comes in the context of a 52-week trading range that has seen prices as high as
Gavin Baker, the Chief Investment Officer of the hedge fund Atreides Management, has established itself as one of the top tech investors operating today.
In eight years managing the OTC Portfolio at Fidelity, Baker achieved a compound annual return rate of more than 19% and outperformed 99% of his peers on Morningstar.
At Atreides, Baker now oversees around $7 billion in public and private investments, and, though his complete returns aren't public, he does have a Sharpe ratio of 2.46, according to Tipranks, well above the average hedge fund, meaning he's able to achieve higher returns without taking on more risk.
Baker also shares his insights on social media, and he just dropped a gem on AI stock valuations.
Speaking on the All-In podcast, he described the AI sector as "cross-sectionally inefficient," explaining that the multiples in the sector don't make sense relative to one another.
As he observes, memory stocks like Micron (MU +0.17%) and Sandisk (SNDK +6.90%) are cheap right now. Baker also says Nvidia (NVDA 0.03%) is trading at a really low P/E.
Conversely, he said that multiples in stocks dealing with power, cooling, and optical are much higher. Stocks like Lumentum Holdings (NASDAQ: LITE), an optical chipmaker that has jumped 10x over the last year, trade at a triple-digit price-to-earnings ratio. Similarly, Coherent (COHR +6.65%), another optical stock that has soared over the last year, trades at a triple-digit P/E.
Baker goes on to conclude that if the multiples on stocks like Coherent and Lumemtum are correct, then memory and Nvidia stocks should go a lot higher. On the other hand, if multiples on Nvidia and Micron are correct, then those other stocks are likely to underperform.
Image source: Getty Images.
Is there just one AI cycle? Baker's theory assumes that there is one AI cycle driving all of these stocks. According to the line of reasoning above, the optical names are in the same AI cycle as memory stocks like Micron. If the AI boom continues, they'll win, but if it fades, they'll be losers.
Memory chip stocks have a history of cyclicality, and investors are wary of another boom-and-bust in the sector as prices can fluctuate wildly due to shifts in inventory from gluts to shortages.
Cyclicality is prevalent across the semiconductor sector, including in optical chips, though the cycles have historically been more severe in memory. What is different about AI is that it has sent these stocks off the charts, arguably making history less useful by comparison, as some have argued AI is a secular boom. If supply/demand dynamics change, however, the downside of the cycle could be brutal.
The smart way to invest in AI stocks While momentum can trump valuation in the short term, valuation almost always matters eventually, so the cheaper stocks do have the advantage here. As the chart below shows, Lumentum stock is significantly more expensive than Micron and Nvidia, even though it's not growing faster, and it's much less profitable on a margin basis.
MU Revenue (Quarterly YoY Growth) data by YCharts
Part of Lumentum's gains over the last year have come from multiple expansion, while that isn't true of Micron, and Nvidia's valuation has actually fallen.
Following Baker's commentary, it looks like the smart way to invest in AI stocks is to choose cheaper names like Micron and Nvidia and avoid stocks like Lumentum that have relied on multiple expansion for growth.
If the AI sector rises and falls as a whole, the cheaper stocks should outperform the pricier ones over the long haul.
While investors know Nvidia (NVDA 0.03%) as the chipmaker at the center of the artificial intelligence (AI) universe, the company also invests in other companies, several of which are publicly traded.
These are typically other AI companies that Nvidia partners with or that are key suppliers or customers.
Nvidia's investment portfolio swelled close to $18.4 billion at the end of the first quarter of this year. During this time, Nvidia plowed $3.8 billion into two AI stocks: one it already owned and the other a new position.
Image source: Nvidia.
Doubling down on CoreWeave In the quarter, Nvidia increased its stake in the AI data center company CoreWeave (CRWV +9.17%) by 95%. Its position in the company increased by more than $1.9 billion at the end of the quarter, bringing the total position to more than $3.65 billion.
Nvidia and CoreWeave have long had a partnership, as CoreWeave purchases graphics processing units (GPUs) from Nvidia and deploys them in its data centers to rent compute to companies looking to deploy AI solutions.
In January, the companies announced they had expanded their relationship in order for CoreWeave to accelerate the construction of more than 5 gigawatts of AI data centers by 2030. Data center build-out is key to the AI revolution, so it's in Nvidia's interest to see CoreWeave grow.
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Along with the announcement, Nvidia said it had invested $2 billion into Class A shares of CoreWeave at an average cost of $87.20 per share. Now owning more than 47 million shares, Nvidia's stake is close to 9% in the company.
While CoreWeave is one of the larger data center companies and is likely to continue to benefit as long as AI remains strong, the company's balance sheet is a bit worrisome. Building data centers is a capital-intensive business, and CoreWeave is highly leveraged. It has significantly diluted shareholders' equity.
At the end of the first quarter, CoreWeave's total debt-to-equity ratio, a measure of default risk, was high at 5.2. The company's total liabilities-to-equity ratio, which focuses more on overall leverage, was also very high at 10.6.
The company's outstanding share count has also more than doubled over the past year, driven by multiple private offerings, typically involving convertible notes that can eventually be converted into shares.
I'm not a huge fan of CoreWeave due to these balance sheet issues and the growing competition in the space. If the AI trade does take a turn for the worse, CoreWeave could take a big hit.
A new partnership In March, Nvidia also announced a new partnership with Coherent (COHR +6.65%). Coherent is a leader in photonics, making components like lasers and optical transceivers that are becoming increasingly important for AI infrastructure.
Nvidia and Coherent's non-exclusive agreement involves a multibillion-dollar purchase commitment from Nvidia and future access and capacity rights to Coherent's advanced laser and optical networking products. The partnership also includes a $2 billion investment from Nvidia to support research and development.
Coherent's products have become important to Nvidia as data centers scale to thousands of GPUs, which require more and more data movement between GPUs before that data is eventually fed into the GPUs.
Specifically, Nvidia uses Coherent's silicon photonics to build Spectrum-X switches. These Ethernet networking platforms are key for "building multi-tenant, hyperscale AI clouds," according to Nvidia.
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Coherent is similar to Micron. While Micron differs in that it provides memory that sits on GPUs and feeds them data, both companies have become key components of the AI supply chain, especially as the industry scales.
Coherent's stock has been on a big run, rising nearly 370% over the past year. The stock also trades at close to 70 times forward earnings, although at a more manageable 10.5 times forward revenue.
This is also another stock that will likely live and die with the AI trade, but seems to be in a good spot at the moment. I think investors can take a small position right now, but should wait for pullbacks to add at better entry points or practice dollar-cost averaging to build the position more slowly.
Coherent is initiated at a buy rating, supported by accelerating growth, robust Q4 guidance, and a long-term optical/photonics opportunity. Q3 saw 21% YoY revenue growth, 55% EPS growth, and expanding margins, with data center demand outpacing supply. Q4 guidance implies further acceleration: 29% revenue growth, 62% EPS growth, and continued margin expansion.
Meanwhile, Coherent Corp. (NYSE:COHR) quietly hit a new all-time high, and it’s playing the exact same trade.
COHR stock is at all-time highs. See the chart and price action here. Optical Trade is on FireHuang’s bullish commentary on AI infrastructure — and specifically on the accelerating demand for high-speed optical connectivity inside hyperscale data centers — sent Marvell flying 25% and Coherent up 16% on Tuesday.
Huang’s remarks reinforced what the optical transceiver trade has been pricing in for months: AI clusters are growing faster and require more bandwidth than anyone modeled a year ago.
Marvell, as one of the most visible names in custom silicon and optical networking, got the headlines from Huang.
Coherent, which manufactures the actual optical transceivers and components that make those data center interconnects work, got the all-time high.
The asymmetry in investors' attention is worth pausing on.
Marvell is a $241.28 billion market cap name that every AI infrastructure investor already has in a model.
Coherent is a $65.76 billion company that tends to get overlooked in the same conversation — even though its revenue exposure to AI optical demand is just as direct.
When Huang says the data center is being rewired around optical interconnects, that’s not just a Marvell headline. It’s a Coherent headline, too.
Expert IdeasWall Street has been quietly building conviction in Coherent.
The three most-recent analyst ratings were released by TD Cowen, Rosenblatt and Stifel in May and hold an average price target of $410.67 between them.
The average price target of $247.58 actually sits well below where the stock is trading now, meaning the most aggressive bulls had their numbers right and the consensus still hasn’t caught up.
The 52-week range says everything: COHR was trading as low as $76.88 a year ago. Tuesday’s $426.67 mark is a 455% run from that trough.
The next real test is whether management can back up the multiple in the next earnings update with hard data on hyperscaler transceiver volumes.
COHR Stock Price Activity: Coherent stock was up 17.74% at $427.29 at the time of publication on Tuesday, according to Benzinga Pro.
Over the past month, COHR has gained about 22.9% versus a 5.5% rise in the S&P 500 and is up roughly 126% year-to-date compared to the index’s 10.8% gain. The stock is trading at new 52-week highs.
Photo: Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Coherent and Lumentum Holdings shares surged on Tuesday as investors piled into optical networking stocks.
The rally followed comments from Nvidia Chief Executive Jensen Huang, highlighting the growing importance of optical interconnects in artificial intelligence data centers.
The rally came alongside a sharp gain in Marvell Technology shares after Huang suggested the chipmaker could become the next trillion-dollar company.
Investors extended that enthusiasm across the broader optical networking ecosystem, lifting companies that supply critical components used in AI infrastructure.
Coherent shares COHR rose 17% to $425.64, putting the stock on track for an all-time closing high.
Lumentum gained 13%, while Corning, which produces fiber used in optical networking systems, also climbed 13%.
Investor enthusiasm was fueled by Huang's remarks at Marvell's Computex 2026 keynote in Taipei, where he discussed the growing need for optical connectivity as AI infrastructure scales.
According to Huang, copper remains useful for data transmission, but its limitations are becoming increasingly apparent as AI workloads expand.
"We should use copper as much as we can, for as long as we can, but copper has its limits... You use optics wherever you must, you use copper wherever you can," Huang said.
The comments reinforced a trend that many investors have already been betting on: the rapid expansion of AI data centers is creating significant demand for high-speed optical networking equipment.
Marvell manufactures digital signal processors used in optical transceivers that connect servers inside AI data centers.
Coherent and Lumentum supply critical optical components and hardware that enable those connections, making them direct beneficiaries of increased spending on AI infrastructure.
Lumentum also maintains a formal partnership with Marvell, further linking its growth prospects to demand for optical networking technologies.
While Marvell attracted much of the attention following Huang's remarks, investors also turned their focus toward Coherent.
The company manufactures optical transceivers and related components that are essential for moving data across hyperscale AI clusters.
According to market observers, Coherent's exposure to AI-related optical demand is comparable to many of the more widely followed AI infrastructure companies.
Analyst sentiment has also improved. Recent ratings from TD Cowen, Rosenblatt, and Stifel carried an average price target of $410.67, although the stock now trades above those levels following its latest rally.
The gains across optical networking stocks highlight how AI-related investments are increasingly benefiting a wide network of suppliers beyond chipmakers.
Nvidia has already committed substantial capital to photonics and optical networking companies.
Over the past three months, the company has invested $2 billion each in Lumentum and Coherent, committed $500 million to Corning for advanced optical connectivity, and participated in Ayar Labs' $500 million funding round.
Those investments, combined with Huang's latest comments, reinforced investor confidence that optical networking will remain a critical component of next-generation AI infrastructure.
The broader trend has also lifted investment vehicles tied to data center development.
The Global X Data Center & Digital Infrastructure ETF, which tracks companies across the data center ecosystem, has gained 50% this year.
For investors, Tuesday's rally underscored a growing market view that as AI clusters become greater and more complex, demand for optical connectivity providers such as Coherent and Lumentum could continue to rise alongside spending on AI infrastructure.
It has been about a month since the last earnings report for Coherent (COHR - Free Report) . Shares have added about 32.2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Coherent due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
COHR Q3 Earnings Meet EstimateCoherent reported third-quarter fiscal 2026 adjusted earnings of $1.41 per share, which matched the Zacks Consensus Estimate and increased 55% year over year. Revenues of $1.8 billion rose 21% year over year and surpassed the consensus estimate of $1.78 billion by 1.5%.
Management highlighted exceptionally strong demand trends across AI networking infrastructure, with bookings reaching record levels and backlog extending into 2028. The company also noted that long-term agreements now extend through the end of the decade.
AI Data Center Demand Drives COHR GrowthCoherent’s Datacenter & Communications segment remained the primary growth engine, accounting for 75% of total revenues in the quarter compared with 65% in the year-ago period. Segment revenues increased more than 40% year over year.
Within the data center business, revenues climbed 13% sequentially and 37% year over year, marking the second consecutive quarter of double-digit sequential growth. Growth was fueled by strong demand for 800G and 1.6T transceivers as hyperscale customers expanded their AI infrastructure deployments. Management expects further acceleration in the current quarter, supported by improving supply availability and capacity expansion initiatives.
The communications business also delivered strong results, with revenues increasing 16% sequentially and 60% year over year. Demand remained robust for data center interconnect products, including ZR and ZR+ transceivers, as well as broader transport networking solutions.
Coherent Expands Capacity Amid Strong OrdersManagement stated that indium phosphide capacity expansion remains a key strategic priority due to industry-wide supply constraints. The company expects to double its internal indium phosphide output capacity by the end of 2026, one quarter ahead of schedule and plans to more than double capacity again by the end of 2027.
Coherent’s 6-inch indium phosphide platform is now producing electro-absorption modulated lasers, CW lasers and photodiodes with yields exceeding legacy 3-inch production lines. During the quarter, the company shipped its first transceivers incorporating components manufactured on the 6-inch platform, contributing to both revenue growth and gross margin expansion.
Management also emphasized growing opportunities in optical circuit switching (OCS) and co-packaged optics (CPO). The company increased its estimate of the OCS market opportunity to more than $4 billion and expects initial scale-out CPO revenues to ramp up in the second half of 2026.
NVIDIA Partnership Strengthens Long-Term OutlookDuring the quarter, Coherent announced a strategic partnership with NVIDIA focused on advanced optical networking and CPO technologies for AI data centers. The agreement includes a $2 billion equity investment from NVIDIA and a multi-year supply agreement extending through the end of the decade.
Management believes the partnership strengthens Coherent’s position in next-generation AI networking infrastructure and creates meaningful long-term revenue visibility across lasers, optical components and integrated photonic systems.
Margins Expand on Better Mix & Cost EfficienciesNon-GAAP gross margin expanded 105 basis points year over year to 39.6%, driven by lower product input costs, pricing optimization and yield improvements from the 6-inch indium phosphide ramp.
Non-GAAP operating margin improved to 20.3% from 18.6% in the prior-year quarter. Meanwhile, non-GAAP operating expenses increased due to continued investments in research & development initiatives supporting transceivers, CPO and high-value optical networking systems.
The company ended the quarter with $3 billion in cash, up significantly from $1.5 billion in the previous quarter, primarily due to NVIDIA’s investment. Coherent also reduced its debt leverage ratio from 1.7 to 0.5 sequentially after making $162 million in debt payments.
COHR Guides Strong Sequential GrowthFor fourth-quarter fiscal 2026, Coherent expects revenues to be between $1.91 billion and $2.05 billion. The company guided adjusted earnings per share between $1.52 and $1.72. Adjusted gross margin is expected to be in the range of 39-41%.
Management expects fiscal 2027 revenue growth to exceed fiscal 2026 growth, supported by expanding AI infrastructure deployments, growing optical networking demand and continued production capacity increases.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.
VGM ScoresCurrently, Coherent has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Coherent has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerCoherent belongs to the Zacks Technology Services industry. Another stock from the same industry, Aptiv PLC (APTV - Free Report) , has gained 27.7% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
APTIV PLC reported revenues of $5.09 billion in the last reported quarter, representing a year-over-year change of +5.4%. EPS of $1.71 for the same period compares with $1.69 a year ago.
APTIV PLC is expected to post earnings of $1.43 per share for the current quarter, representing a year-over-year change of -32.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.8%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for APTIV PLC. Also, the stock has a VGM Score of B.
Nvidia (NVDA 0.03%) has been one of the best-performing stocks in the artificial intelligence (AI) era, which isn't surprising, as its chips have been instrumental in the training of large language models (LLMs) over the years.
An investment of $1,000 made in Nvidia stock three years ago is now worth more than $5,400. The good news for Nvidia investors is that its growth continues to accelerate. This was evident from Nvidia's latest quarterly report. However, the stock's returns have been lukewarm so far this year, with shares gaining just 14% despite the consistently solid growth that Nvidia has been clocking.
There are a few reasons this may be the case, such as rising competition in AI chips and concerns about Nvidia's ability to deliver further upside after becoming the largest company in the world. However, the market may be making a big mistake by viewing Nvidia's AI prospects in isolation. It has been expanding its wings in AI by investing in other companies that are playing a critical role in this space.
Let's take a closer look at how Nvidia's investments make it a much bigger AI play than the market may realize.
Image source: Nvidia.
Nvidia is tapping these fast-growing niches through its investments AI is not just about the graphics processing units (GPUs) that Nvidia sells. The booming investment in AI infrastructure has created demand for additional components, such as custom processors and networking products. Nvidia has stakes in companies such as Lumentum Holdings (LITE +3.06%), Coherent (COHR +6.65%), and Marvell Technology (MRVL +1.23%).
Lumentum and Coherent manufacture optical networking, photonics, and laser components that enable the rapid transfer of large amounts of data in data centers and AI chip clusters. Nvidia announced a $2 billion investment in Coherent in March this year to "support research and development, future capacity and operations as Coherent builds out its U.S.-based manufacturing capabilities."
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It also announced a similar investment in Lumentum on the same day for identical reasons. Nvidia notes that optical networks will play a critical role in scaling up AI data centers and factories. That's not surprising, as optical networks support help transfer large datasets with low latency in AI chip clusters, enabling AI accelerators to perform optimally with minimal data loss.
Fast networking and high bandwidth reduce downtime for AI accelerators, such as GPUs. This explains why demand for optical networking components is outpacing supply. McKinsey estimates that demand for high-speed 800 Gbps (gigabits per second) optical transceivers deployed in AI data centers will exceed production by 40% to 60% through 2027.
As a result, the prices of these optical components are rising sharply, driving phenomenal growth for Coherent and Lumentum.
Data by YCharts
This terrific earnings growth is translating into healthy upside on the stock market. Lumentum stock has jumped by over 1,100% over the past year, while Coherent has clocked 444% gains. Moreover, Nvidia's investments in these companies should ensure it has access to a supply of optical networking components by helping them build additional capacity.
For example, Coherent CEO Jim Anderson pointed out in March that Nvidia's investment will increase the chip giant's "access to include multiple product families to help them build the AI data centers of the future." Similarly, Lumentum is going to invest "in a new fabrication facility to increase capacity and accelerate innovation" following Nvidia's investments.
So, Nvidia is taking steps to ensure that it controls the AI infrastructure supply chain more tightly by investing in the likes of Coherent and Lumentum, which provide critical components necessary for scaling up AI data centers.
Meanwhile, Nvidia's $2 billion investment in Marvell Technology, announced on March 31, is another strategic move. Marvell designs custom AI processors and networking components that are experiencing strong demand as AI inference grows. Nvidia's investment in Marvell will enable it to make rack-scale server systems that integrate custom AI processors, server processors, and networking components into a single platform.
The partnership also strengthens Nvidia's position in optical networking and silicon photonics. What's worth noting is that Marvell designs AI chips and networking components for major hyperscalers and has multiple design wins in the pipeline, poised to go into production over the next couple of years. So, it was easy to see why Marvell raised its full-year guidance when it released its fiscal 2027 first-quarter results (for the three months ended May 2) on May 27.
The company anticipates a 40% increase in revenue in the current fiscal year to $11.5 billion, followed by a larger 45% increase in the next fiscal year. What's more, its earnings growth is also poised to take off.
Data by YCharts
So, Nvidia's investment in Marvell is likely to become a profitable one in the long run. At the same time, its partnership for custom AI processors should ensure the chip giant remains a dominant player in the AI semiconductor space. In fact, Nvidia CEO Jensen Huang recently remarked that Marvell could become a $1 trillion company, sending the AI stock soaring.
Investors should consider loading up on Nvidia stock before it breaks out Nvidia's growth was fantastic last quarter, and the good news is that it is poised to step on the gas from the current quarter. Moreover, the company's focus on expanding its AI hardware ecosystem by investing in key infrastructure companies should be a long-term tailwind, especially given that its investments are likely to be profitable.
That's why it would be a good idea to buy Nvidia stock, given its price/earnings-to-growth (PEG) ratio of just 0.69, based on the annual earnings growth it can clock over the next five years, according to Yahoo! Finance. The PEG ratio is a forward-looking valuation metric that considers a company's earnings growth potential, and a reading of below 1 indicates the stock is undervalued.
Nvidia, therefore, seems quite undervalued given its future growth potential. So, it won't be surprising to see it jump significantly in the long run, which is why it makes sense to buy it before it soars higher.
Nvidia (NVDA 0.03%) dominates many headlines about the booming artificial intelligence (AI) market. As the world's largest producer of data center GPUs for training AI algorithms, it's still selling the best picks and shovels for the AI gold rush.
Yet over the past 12 months, an oft-overlooked optical networking stock outperformed Nvidia by a wide margin. That stock was Coherent (COHR +6.65%), which surged more than 400% and crushed Nvidia's near-50% gain. Let's see why the AI tailwinds propelled Coherent's stock higher -- and if it can stay ahead of Nvidia and the other AI leaders.
Image source: Getty Images.
What does Coherent do? Coherent, which was known as II-VI until it acquired the original Coherent and inherited its brand and ticker in 2022, is the world's leading photonics company. It manufactures optical transceivers and components that convert electronic data into light signals, transmit them through fiber-optic cables, and convert them back into accessible data.
In the past, data centers mainly used traditional copper wires to transfer their data between servers. But today, those wires are too slow and generate too much heat to handle the soaring data needs of the expanding cloud infrastructure and AI markets. Those limitations are driving more data center operators to upgrade their networks with Coherent's faster optical devices.
Most of Coherent's revenue comes from its optical business, which has become its core growth engine as the AI market expands. It also produces manufacturing lasers and specialty chips, but those businesses aren't delivering nearly as much growth as its optical business.
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How fast is Coherent growing? In fiscal 2025 (which ended last June), Coherent's revenue rose 23% as data centers upgraded their infrastructure to handle the latest generative AI applications. From fiscal 2025 to fiscal 2028, analysts expect its revenue to grow at a 30% CAGR. They expect its EPS to turn positive in fiscal 2026 and grow at a 52% CAGR over the following two years.
That growth should be driven by its new ultra-fast 800G, 1.6T, and next-generation 3.2T optical technologies. However, Coherent's stock isn't cheap at 63 times its fiscal 2027 earnings (and 51 times its forward adjusted earnings). Nvidia trades at just 22 times its projected earnings for fiscal 2027 (which ends next January) -- but analysts still expect its revenue and EPS to grow at 46% and 45%, respectively, from fiscal 2026 to fiscal 2029.
Coherent's stock soared as it was revalued from a slow-growth optical components and industrial lasers maker into a high-growth AI play. Still, its high valuation could cap its upside potential. While it's still a promising long-term play on the AI-fueled growth of the optical networking market, I think it could underperform Nvidia for the rest of this year.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Coherent and Nvidia. The Motley Fool has a disclosure policy.
Key Takeaways COHR surged 336.6% in a year, then slipped 6.3% in a month as a correction set in.Coherent's datacenter & communications segment was 75% of Q3'26 top line, up 41% y/y.COHR's multi-year NVIDIA pact includes $2B investment and backlog into 2028, but scaling InP lines adds risks. Coherent Corp.’s (COHR - Free Report) stock displayed remarkable growth over the past year. COHR has skyrocketed 336.6%, beating the industry's 11.6% rally and the Zacks S&P 500 Composite’s 28.2% growth.
Over the past year, the company has outpaced its close competitors, Wolfspeed (WOLF - Free Report) and ON Semiconductor (ON - Free Report) . Wolfspeed and ON Semiconductor shares have surged 70.5% and 125.9%, respectively.
1-Year Share Price PerformanceImage Source: Zacks Investment Research
Recent performance shows that Coherent stock dipped 6.3% in a month, signaling that it is going through a correction phase. For the same period, Wolfspeed has declined 3.1%, while ON Semiconductor has gained 9.1%.
Let us analyze the COHR stock to find out whether you should ride the rally, hold or stay away from it.
AI-Backed Demand De-Risks COHR’s Financial OutlookCoherent's primary growth driver has shifted to the datacenter & communications segment, capturing 75% of the top line during the third quarter of fiscal 2026 and gaining 41% from the year-ago quarter. It is beneficial for investors as it de-risks the company’s financial prospects while improving earnings quality.
The stock is trading at a 12-month forward price-to-earnings multiple of 44.83X, which is a premium price compared with the industry’s 22X. While traditionally this premium equity valuation could have affected investors’ interest, it is justified considering Coherent’s ability to convert historically volatile, short-cycle tech-hardware demand into a predictable and long-term source of cash flow. This stream of cash is backed by solid order visibility into calendar year 2028 and long-term agreements extending to the end of the decade.
Image Source: Zacks Investment Research
A drastic surge in asset utilization and supply-chain efficiencies facilitated by a step-function increase to record-high backlogs enhances the company’s operational prowess. It is validated by a 163-basis-point year-over-year expansion in the adjusted operating margin, translating into a 55.9% jump in adjusted net income.
NVIDIA Partnership: Boon to COHR’s Growth SecurityNVIDIA and Coherent entered a multi-year agreement to push the boundaries of advanced optic technologies. Through this partnership, NVIDIA is investing $2 billion in Coherent to aid research and development, future capacity, and operations as the company builds its U.S.-based manufacturing arm.
This news is nothing short of a catalyst for investors because it provides immediate financial validation and long-term growth security. The endorsement from an elite tech giant strengthens COHR’s balance sheet and pushes the narrative that optical technology is vital to AI infrastructure. This partnership deal provides Coherent with a predictable and contracted revenue stream, shielding it from hardware cyclicality.
Importantly, this event has positioned Coherent as a frontrunner of the Co-Packaged Optics transition, exposing investors to a market that is anticipated to see a CAGR of 35.9% through 2031 to $764.3 million (per Mordor Intelligence). This partnership sets Coherent as a long-term beneficiary of NVIDIA’s AI dominance.
Coherent’s Bright Top & Bottom-Line ProspectsThe Zacks Consensus Estimate for COHR’s fiscal 2026 revenues is pegged at $7.1 billion, indicating a 21.5% year-over-year increase. For fiscal 2027, the same is expected to rise 34.4% from the year-ago quarter’s actual. For EPS, the consensus mark is set at $5.48, implying 55.2% year-over-year growth. For fiscal 2027, the bottom line is anticipated to rise 47.6%.
Image Source: Zacks Investment Research
Over the past 60 days, eight and nine EPS estimates for fiscal 2026 and 2027 have been revised upward, respectively, with one downward adjustment for fiscal 2026 and none for fiscal 2027. During the same period, the Zacks Consensus Estimate for fiscal 2026 and 2027 earnings has increased 1.7% and 10.1%, respectively, signaling analyst confidence.
COHR Faces Concentration Risks & Sectoral ImbalanceWhile Coherent derives 75% of its top line from the booming datacenter & communications segment, it poses concentration risks, raising vulnerability to any slowdown or supply congestion. A spending halt within the AI domain can hinder the company’s ability to generate revenues.
In addition to the concentration risks, Coherent’s industrial segment is tackling a massive downturn. In the third quarter of fiscal 2026, revenues in this segment plunged 19.1% year over year. This is not a one-off event since the company has been experiencing this decelerating trajectory over the past few quarters.
Therefore, it is evident that the company is lacking a cushion to fall onto if AI demand slows down, reducing revenue growth rate from the datacenter & communications segment.
Execution Risks of Coherent’s Step-Function BacklogManagement highlighted a step-function increase in backlog in calendar 2028. Although exponential growth must provide a positive impetus to the company’s revenues, it raises execution risks as well. If the company suffers unexpected yield issues, infrastructure constraints, or operational setbacks during the transition from 3-inch to 6-inch indium phosphide manufacturing lines, it could hinder the conversion of this steep backlog efficiently. This could easily result in canceled orders or customer defection.
Verdict: Hold COHR Stock NowCoherent’s bullish trajectory is solidified by explosive growth in its datacenter & communications segment and a $2-billion investment from the NVIDIA partnership, bolstering its ability to raise revenue visibility into 2028.
While the top and bottom-line outlooks appear bright, the company is relying on reaching those milestones on the back of a single segment that generates 75% of revenues, which raises concentration risks. This headwind is further amplified by the execution risks involved in delivering the massive backlog that the company has shouldered.
Ultimately, it appears that COHR is riding through a correction phase. Therefore, we suggest that potential investors remain patient and watch for further share price adjustments before buying.
COHR currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A pair of Nvidia-backed stocks that were among investors' favorite AI names earlier this year, have pulled back lately. JPMorgan analysts see that as an opportunity.
WILDLIGHT, Fla.--(BUSINESS WIRE)--Rayonier Inc. (NYSE:RYN) plans to release its first quarter 2026 earnings after the market closes on Wednesday, May 6, 2026.
Rayonier will host a conference call and live audio webcast at 10:00 a.m. (ET) on Thursday, May 7 to discuss these results. Supplemental materials and access to the live audio webcast will be available at www.rayonier.com. A replay of the webcast will be archived on the Company’s website and available shortly after the call.
The conference call can be accessed by registering online at Q1 2026 Rayonier Earnings Call Webcast, at which time registrants will receive dial-in information.
About Rayonier
Rayonier is a land resources real estate investment trust (REIT) with a portfolio comprising over four million acres in the U.S. South and U.S. Northwest. The company is focused on managing its timberlands on a sustainable basis while optimizing its overall portfolio value by delivering land to its highest and best use. Rayonier also operates six sawmills, an industrial-grade plywood mill, residential and commercial real estate developments, and a rural land sales program. Rayonier is committed to corporate responsibility, third-party forest certification, and supporting climate change mitigation through its land-based solutions business. More information is available at www.rayonier.com.
During the quarter, we had no new purchases and exited three holdings: Louisiana-Pacific, PayPal and Walt Disney. CNH, a leading global agriculture and construction equipment manufacturer, was a contributor for the quarter. Life-sciences company Avantor detracted for the quarter.
Alcoholic beverage company Boston Beer was a contributor for the quarter as industry data improved compared to last year. Children's toy, media, and consumer products creator Mattel was a detractor in the quarter. During the quarter we had no new purchases or exits.
JACKSONVILLE, Fla.--(BUSINESS WIRE)--Rayonier Advanced Materials Inc. (“RYAM” or the “Company”) today announced that the Company is engaged in a formal process to explore strategic alternatives to maximize shareholder value. In connection with the strategic alternatives review, the Company has engaged Morgan Stanley & Co. LLC as its financial advisor and Wachtell, Lipton, Rosen & Katz as its legal counsel.
The Company also announced that its Board of Directors (“Board”) has established an interim Office of the Chief Executive Officer (“OFC”) following the resignation of President and CEO Scott M. Sutton, effective immediately. The OFC will comprise current executives to guide the Company through this transition period, including Marcus J. Moeltner, Chief Financial Officer and Senior Vice President of Finance; Michael Osborne, Vice President of Manufacturing Operations; Christian Ribeyrolle, Senior Vice President of Biomaterials; and R. Colby Slaughter, Senior Vice President, General Counsel and Corporate Secretary.
Lisa M. Palumbo, Non-Executive Chair of RYAM’s Board of Directors, stated, “The Board and management are focused on ways to maximize value for the Company’s stockholders. As we have recently received unsolicited indications of interest, we believe now this is the right time to evaluate options that may further advance that goal. Marcus, Michael, Christian and Colby are seasoned and highly capable leaders who have proven track records of success with RYAM. I am confident that they are well positioned to provide continuity and maintain momentum as the team continues to execute on our value-creating strategy, and the Board works with a leading executive search firm to identify a permanent successor.”
Additionally, a committee of the Board will support the OFC as part of the strategic review process. The strategic review will consider a range of potential strategic, business and financial alternatives, which may include, among other things, a sale of all or part of the Company, a strategic investment, a merger or other business combination, or other strategic or financial alternatives, as well as continuing to execute on the Company’s standalone strategic plan.
The Board remains confident that its approach—which is grounded in disciplined governance, transparency, and a commitment to sustainable value creation—is in the best interests of stockholders, customers, employees and all stakeholders. The Board has not set a timetable for completion of the strategic review and does not intend to provide updates unless and until it is determined that disclosure is appropriate or required by law. There can be no assurance that the strategic alternatives review process will result in any transaction or other strategic change.
Office of the CEO – Member Biographies
Marcus J. Moeltner has served as RYAM’s Chief Financial Officer and Senior Vice President, Finance since July 2019, bringing 35 years of experience across the forest and consumer products industries, including leadership roles at Tembec, Grant Forest Products, and Kimberly‑Clark.
Michael Osborne is Vice President of Manufacturing at RYAM, a role he assumed in April 2023, bringing more than 30 years of manufacturing and leadership experience across Georgia‑Pacific, Arizona Chemical, and Kraton Pine Chemicals, where he most recently served as Vice President, Global Manufacturing.
Christian Ribeyrolle became Vice President Biomaterials in November 2021 following a more than 35-year career in the paper and cellulose specialty business. He started at Tembec in 2003 as General Manager of the Tartas plant in France and went on to lead the HPC Business Unit. He then joined RYAM following the acquisition of Tembec in November 2017.
R. Colby Slaughter has served as RYAM’s Vice President, General Counsel and Corporate Secretary of the Company since March 21, 2020. Prior to that, he was appointed Assistant General Counsel in May 2016. He joined the Company’s predecessor, Rayonier Inc., in January 2013 as Senior Counsel, a role he continued in following the Company’s 2014 spinoff from Rayonier Inc. until his promotion in 2016.
About RYAM
RYAM is a global leader of cellulose and derivatives commonly used in the production of filters, food, pharmaceuticals, high performance plastics, propellants and various industrial applications. RYAM’s specialized assets, capable of creating the world’s leading cellulose specialties products, are also used to produce cellulose viscose pulp, cellulose fluff pulp, high-yield pulp and various value-added derivatives, including paperboard, biofuels, bioelectricity and lignin. With manufacturing operations in the U.S., Canada and France, RYAM generated $1.5 billion of revenue in 2025. More information is available at www.RYAM.com.
Forward-Looking Statements
Certain statements in this press release may constitute forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which can be identified by words such as “may”, “intend”, “believe”, “expect”, “anticipate”, “continue”, or other comparable words and references to future periods. These statements involve a number of risks and uncertainties and RYAM cautions that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Readers are urged to carefully review and consider the various disclosures, including but not limited to risk factors contained in RYAM’s Annual Report on Form 10-K and its quarterly reports on Form 10-Q, as well as other filings with the securities commissions.
I discuss two deeply discounted, high-yield stocks most investors are ignoring. Both trade at huge discounts to NAV and are buying back stock aggressively. They also pay out attractive dividend yields ranging from 5.1%-11.7%.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Rayonier (RYN - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 6. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis forest products company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +400%.
Revenues are expected to be $282.95 million, up 241.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 5.26% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Rayonier?For Rayonier, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Rayonier will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Rayonier would post earnings of $0.12 per share when it actually produced earnings of $0.20, delivering a surprise of +66.67%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Rayonier doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
The market expects Trex (TREX - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 7. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis maker of fencing and decking products is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of -15%.
Revenues are expected to be $339.28 million, down 0.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.31% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Trex?For Trex, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.37%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Trex will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Trex would post a loss of$0.01 per share when it actually produced earnings of $0.04, delivering a surprise of +500.00%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Trex doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsRayonier (RYN - Free Report) , another stock in the Zacks Building Products - Wood industry, is expected to report earnings per share of $0.06 for the quarter ended March 2026. This estimate points to a year-over-year change of +400%. Revenues for the quarter are expected to be $282.95 million, up 241.3% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Rayonier has been revised 5.3% down to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Rayonier will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
WILDLIGHT, Fla.--(BUSINESS WIRE)--Rayonier Inc. (NYSE:RYN) today reported first quarter net loss attributable to Rayonier of ($12.4) million, or ($0.05) per diluted share, on revenues of $276.8 million. This compares to net loss attributable to Rayonier of ($3.4) million, or ($0.02) per diluted share, on revenues of $82.9 million in the prior year quarter.
The first quarter results included $69.5 million of costs (net of tax) related to the merger with PotlatchDeltic1 and a $0.9 million inventory purchase price adjustment (net of tax) in cost of sales,2 which was partially offset by a $40.3 million income tax benefit from the release of a valuation allowance.3 Excluding these items and adjusting for pro forma net income adjustments attributable to noncontrolling interests,4 first quarter pro forma net income5 was $17.4 million, or $0.07 per share. This compares to pro forma net loss5 of ($2.7) million, or ($0.02) per share, in the prior year period.
The following table summarizes the current quarter and comparable prior year period results. Consolidated results for the first quarter of 2026 include the operations of PotlatchDeltic for the period from January 31, 2026 through March 31, 2026.
Three Months Ended
(millions of dollars, except earnings per share (EPS))
March 31, 2026
March 31, 2025
$
EPS
$
EPS
Revenues
$276.8
$82.9
Net loss attributable to Rayonier
($12.4
)
($0.05
)
($3.4
)
($0.02
)
Pro forma items net of tax:
Costs related to the merger with PotlatchDeltic1
69.5
0.27
—
—
Inventory purchase price adjustment in cost of sales2
0.9
—
—
—
Tax benefit from valuation allowance release3
(40.3
)
(0.16
)
—
—
Income from operations of discontinued operations6
—
—
(2.5
)
(0.02
)
Restructuring charges7
—
—
1.1
0.01
Net cost on legal settlements8
—
—
1.7
0.01
Pro forma net income (loss) adjustments attributable to noncontrolling interests4
(0.2
)
—
0.4
—
Pro forma net income (loss)5
$17.4
$0.07
($2.7
)
($0.02
)
First quarter operating loss was ($45.7) million versus operating income of $0.1 million in the prior year period. First quarter operating loss included $70.4 million of costs related to the merger with PotlatchDeltic1 and a $1.2 million inventory purchase price adjustment in cost of sales.2 Excluding these items, pro forma operating income5 was $25.9 million. This compares to pro forma operating income5 of $1.2 million in the prior year period. First quarter Adjusted EBITDA5 was $94.1 million versus $27.1 million in the prior year period.
The following table summarizes operating income, pro forma operating income,5 and Adjusted EBITDA5 for the current quarter and the comparable prior-year period. The presentation reflects the addition of the Wood Products segment and the renaming of the Pacific Northwest Timber segment following the merger with PotlatchDeltic (as further described below).
Three Months Ended March 31,
Operating (Loss) Income
Pro forma Operating Income (Loss)5
Adjusted EBITDA5
(millions of dollars)
2026
2025
2026
2025
2026
2025
Southern Timber
$12.4
$10.1
$12.4
$10.1
$45.5
$27.0
Northwest Timber
(0.4
)
0.3
(0.4
)
0.3
8.6
5.9
Wood Products
(1.0
)
—
0.1
—
6.8
—
Real Estate
27.4
(1.0
)
27.4
(1.0
)
46.2
2.0
Corporate and Other
(82.8
)
(9.3
)
(12.3
)
(8.2
)
(11.8
)
(7.9
)
Intersegment Eliminations9
(1.2
)
—
(1.2
)
—
(1.2
)
—
Total
($45.7
)
$0.1
$25.9
$1.2
$94.1
$27.1
Cash provided by operating activities was $34.6 million versus $27.7 million in the prior year period. Cash available for distribution (CAD)5 was $90.2 million, which increased $69.9 million versus the prior year period due to higher Adjusted EBITDA5 ($67.1 million) and higher cash interest received (net) ($11.0 million), partially offset by higher capital expenditures ($8.4 million).
“During the first quarter, we generated total Adjusted EBITDA of $94.1 million, reflecting two months of post-merger contribution from the legacy PotlatchDeltic businesses following the successful closing of our merger of equals on January 30th,” said Mark McHugh, President and Chief Executive Officer. “In addition to delivering solid financial results to start the year, I am extremely proud of the collaboration, focus and dedication that our team has demonstrated as we’ve executed on integration initiatives.”
“In our Southern Timber segment, Adjusted EBITDA of $45.5 million increased 68% versus the prior year quarter, largely due to the contribution of approximately 1.0 million tons of harvest volume from the PotlatchDeltic timberlands. In Northwest Timber, Adjusted EBITDA of $8.6 million was 45% higher than the prior year quarter, primarily due to 116,000 tons of incremental harvest volume from the PotlatchDeltic timberlands.”
“In our newly established Wood Products segment, we generated Adjusted EBITDA of $6.8 million, as lumber price realizations trended higher through the first quarter.”
“In our Real Estate segment, Adjusted EBITDA totaled $46.2 million—above the high-end of our prior guidance for the quarter—as we continued to see strong momentum across our real estate categories. Notably, our real estate results for the quarter included a $22.5 million land sale to a solar developer at over $10,000 per acre.”
PotlatchDeltic Corporation Merger and Changes to Reportable Business Segments
On January 30, 2026, Rayonier completed the previously announced merger with PotlatchDeltic Corporation (“PotlatchDeltic”). Accordingly, PotlatchDeltic’s balance sheet and results of operations are included in our consolidated financial statements from and after the date of acquisition.
As a result of the merger, we revised our reportable business segments to include a new “Wood Products” segment, which manufactures and sells lumber, plywood and residual products at seven mills located in Arkansas, Idaho, Michigan and Minnesota. We further renamed the Pacific Northwest Timber segment to “Northwest Timber,” reflecting the addition of approximately 623,000 acres of timberlands in Idaho. Within our Southern Timber segment, we revised our price reporting to reflect delivered log prices rather than net stumpage realizations, reflecting the change in the prevalent mode of sale following the addition of approximately 1.5 million acres to the segment through the merger.
Southern Timber
First quarter sales of $88.7 million increased $37.7 million, or 74%, versus the prior year period. Harvest volumes increased 76% to 2.78 million tons versus 1.58 million tons in the prior year period, primarily driven by 1.0 million tons of incremental volume from the PotlatchDeltic timberlands. Average delivered pine sawtimber prices decreased to $44.59 per ton versus $47.69 per ton in the prior year period, primarily reflecting changes in geographic mix associated with the expanded Southern Timber footprint, as well as modestly weaker market conditions. Average delivered pine pulpwood prices decreased to $30.20 per ton versus $37.83 per ton in the prior year period, reflecting geographic mix impacts from the expanded footprint, as well as softer pulpwood markets. Meanwhile, weighted-average prices on stumpage sales (including hardwood) decreased to $16.65 per ton versus $18.11 per ton in the prior year period, largely attributable to the geographic mix shift due to the merger. Operating income of $12.4 million increased $2.2 million versus the prior year period due to higher volumes ($6.7 million) and higher non-timber income ($4.8 million), partially offset by higher depletion expense ($3.4 million), lower prices ($3.3 million) and higher costs ($2.5 million).
First quarter Adjusted EBITDA5 of $45.5 million was 68%, or $18.5 million, above the prior year period.
Northwest Timber
First quarter sales of $32.1 million increased $10.3 million, or 47%, versus the prior year period. Harvest volumes increased 38% to 361,000 tons versus 261,000 tons in the prior year period, primarily driven by 116,000 tons of incremental volume from legacy PotlatchDeltic timberlands. Idaho harvest activity was limited during the first quarter due to extended spring break-up conditions following a relatively mild winter. Average delivered prices for sawtimber increased to $94.37 per ton versus $90.58 per ton in the prior year period, primarily reflecting geographic mix due to the addition of Idaho sawtimber (most of which is indexed to lumber prices), which more than offset modestly lower prices in the Pacific Northwest. Average delivered pulpwood prices increased to $36.82 per ton versus $30.05 per ton in the prior year period, primarily due to improved pulpwood demand and less competition from sawmill residuals. Operating loss of ($0.4) million versus operating income of $0.3 million in the prior year period was driven by higher costs ($2.4 million) and higher depletion expense ($1.3 million), partially offset by higher volumes ($1.5 million), higher prices ($1.2 million) and higher non-timber income ($0.3 million).
First quarter Adjusted EBITDA5 of $8.6 million was 45%, or $2.7 million, above the prior year period.
Wood Products
First quarter sales totaled $108.5 million, consisting of $87.2 million of lumber sales and $21.3 million of plywood, residual, and other sales. Improved supply-demand conditions due to capacity curtailments announced last year, coupled with seasonal restocking ahead of the spring building season, drove higher lumber prices throughout the first quarter, particularly for southern yellow pine. Lumber shipments totaled 199 MMBF, with average lumber price realizations of $437 per thousand board feet. While shipment volumes were impacted by adverse weather in both our Northern and Southern mills, overall manufacturing costs per unit remained stable. Industrial plywood demand and costs were also relatively stable during the quarter.
First quarter operating loss and Adjusted EBITDA5 were ($1.0) million and $6.8 million, respectively.
Real Estate
First quarter sales of $59.8 million increased $49.6 million versus the prior year period, while operating income of $27.4 million increased $28.3 million versus the prior year period. Sales and operating income increased primarily due to higher acres sold (7,695 acres sold versus 1,031 acres sold in the prior year period), partially offset by lower weighted-average prices ($7,280 per acre versus $8,308 per acre in the prior year period).
Improved Development sales of $6.6 million included $3.5 million from the Heartwood development project south of Savannah, Georgia and $3.1 million from the Chenal Valley development project in Little Rock, Arkansas. Sales in Heartwood consisted of a 32-acre church site for $2.2 million ($68,000 per acre) and two commercial properties totaling 2.4 acres for $1.3 million ($538,000 per acre). Sales in Chenal Valley included 20 residential lots for $3.1 million ($157,000 per lot). This compares to Improved Development sales of $3.3 million in the prior year period.
Rural sales of $49.4 million consisted of 7,656 acres at an average price of $6,457 per acre, including a 2,226-acre sale to a solar developer for $10,100 per acre. This compares to prior year period sales of $5.3 million, which consisted of 953 acres at an average price of $5,534 per acre.
First quarter Adjusted EBITDA5 of $46.2 million increased $44.2 million versus the prior year period.
Other Items
First quarter corporate and other operating expenses of $82.8 million increased $73.4 million versus the prior year period, primarily due to $70.4 million of costs related to the merger with PotlatchDeltic.1 The prior year period included $1.1 million of restructuring charges.7
First quarter interest expense of $14.3 million increased $7.9 million versus the prior year period, primarily due to incremental debt assumed in the merger with PotlatchDeltic. First quarter interest income of $7.2 million increased $4.3 million versus the prior year period, primarily due to a higher cash balance following the sale of the Company’s New Zealand joint venture interest in the second quarter of 2025.
First quarter income tax benefit of $39.4 million versus $0.3 million of income tax expense in the prior year period was primarily driven by a $40.3 million benefit associated with the release of a valuation allowance.3 This valuation allowance was primarily related to net operating losses generated by the Company’s taxable REIT subsidiary, which are now expected to be utilized following the merger with PotlatchDeltic.
Share Repurchases
During the first quarter, the Company repurchased approximately 1.5 million shares at an average price of $20.98 per share, or $31.1 million in total. As of March 31, 2026, the Company had $198.4 million remaining on its current share repurchase authorization.
Outlook
Consistent with the initial 2026 financial guidance we provided in February, the following full-year metrics reflect a pro rata contribution from legacy PotlatchDeltic operations for January 31, 2026 through December 31, 2026.
Southern Timber: In our Southern Timber segment, we expect to achieve full-year harvest volumes of 12.1 to 12.6 million tons, with anticipated harvest volumes of 2.9 to 3.1 million tons in the second quarter. We expect regional sawtimber and pulpwood prices to remain relatively stable for the second quarter compared to the first quarter. However, full-year and quarterly average pine prices for the combined company’s Southern Timber segment are expected to be lower than the standalone prices for Rayonier in the prior year based on the geographic mix of the combined company. Northwest Timber: In our Northwest Timber segment, we expect to achieve full-year harvest volumes of 2.0 to 2.3 million tons, with anticipated harvest volumes of approximately 500,000 tons in the second quarter. We expect overall sawtimber prices to be higher in the second quarter compared to the first quarter primarily due to the addition of PotlatchDeltic’s Idaho timberlands. We also continue to expect that full-year 2026 average log pricing for the combined company’s Northwest Timber segment will be higher than the standalone pricing for Rayonier in the prior year. However, as we previously highlighted, our pricing in the Northwest following the merger will be more sensitive to fluctuations in lumber pricing, as a significant portion of our sawlog sales in Idaho are indexed to lumber prices. Wood Products: In our Wood Products segment, we continue to expect lumber shipments to total ~1.1 billion board feet for the 11 months of contribution in 2026. We further expect lumber shipments in the second quarter of approximately 310 to 320 million board feet. We were encouraged by the positive trajectory in lumber prices through mid-April, but pricing in recent weeks across some products has moderated amid more balanced supply/demand dynamics. Based on quarter-to-date price realizations and current lumber pricing, we expect the Adjusted EBITDA contribution from the Wood Products segment to be higher in the second quarter as compared to the first quarter results. Real Estate: We are pleased by the continued momentum in our Real Estate segment and maintain a strong pipeline of rural and improved development land sales for the balance of the year. Based on our current transaction pipeline and sales closed quarter-to-date, we expect an Adjusted EBITDA contribution in the second quarter of $25 to $35 million. For the full year, we continue to expect an Adjusted EBITDA contribution from our Real Estate segment of $180 to $200 million. Conference Call
A conference call and live audio webcast will be held on Thursday, May 7, 2026 at 10:00 AM (ET) to discuss these results. The conference call can be accessed by registering online at www.rayonier.com, at which time registrants will receive dial-in information.
Access to the live audio webcast will be available at www.rayonier.com. A replay of the webcast will be archived on the Company’s website and available shortly after the call.
Complimentary copies of Rayonier press releases and other financial documents are also available by calling (904) 357-9100.
1
"Costs related to the merger with PotlatchDeltic" include professional services fees, employee-related costs, accelerated stock-based compensation, and other integration-related costs incurred in connection with the merger, which closed on January 30, 2026.
2
"Inventory purchase price adjustment in cost of sales" reflects a non-cash, one-time charge reflecting the excess of fair value over PotlatchDeltic’s historical cost on acquired finished goods inventory sold post-closing.
3
"Tax benefit from valuation allowance release" reflects a non-cash release of Rayonier's pre-existing valuation allowance, triggered by deferred tax liabilities recognized in the PotlatchDeltic purchase price allocation.
4
"Pro forma net income (loss) adjustments attributable to noncontrolling interests" are the proportionate share of pro forma items that are attributable to noncontrolling interests.
5
"Pro forma net income (loss)," "Pro forma operating income (loss)," "Adjusted EBITDA" and "CAD" are non-GAAP measures defined and reconciled to GAAP in the attached exhibits.
6
"Income from operations of discontinued operations" includes income generated by the Company’s New Zealand joint venture interest, which was classified as discontinued operations prior to its June 30, 2025 disposition.
7
"Restructuring charges" include severance costs related to workforce optimization initiatives.
8
"Net cost on legal settlements" reflects the net loss from litigation regarding insurance claims.
9
"Intersegment eliminations" reflects the elimination of profit on log sales from the Timber segments to Wood Products that remain in inventory at the end of the period.
About Rayonier
Rayonier is a land resources real estate investment trust (REIT) with a portfolio comprising over four million acres in the U.S. South and U.S. Northwest. The company is focused on managing its timberlands on a sustainable basis while optimizing its overall portfolio value by delivering land to its highest and best use. Rayonier also operates six sawmills, an industrial-grade plywood mill, residential and commercial real estate developments, and a rural land sales program. Rayonier is committed to corporate responsibility, third-party forest certification, and supporting climate change mitigation through its land-based solutions business.
More information is available at www.rayonier.com.
Forward-Looking Statements - Certain statements in this press release regarding anticipated financial outcomes including Rayonier’s earnings guidance, if any, business and market conditions, outlook, expected dividend rate, acquisition and disposition activity, including the ability to realize the intended benefits of our recent merger with PotlatchDeltic Corporation, expected harvest schedules, timberland acquisitions and dispositions, the anticipated benefits of Rayonier’s business strategies, including the recent sale of the entities holding Rayonier’s interest in the New Zealand joint venture and the anticipated use of proceeds from such sale, and other similar statements relating to Rayonier’s future events, developments or financial or operational performance or results, are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as “may,” “will,” “should,” “expect,” “estimate,” “believe,” “intend,” “project,” “anticipate,” “long-term,” “looking ahead” and other similar language. However, the absence of these or similar words or expressions does not mean that a statement is not forward-looking. While management believes that these forward-looking statements are reasonable when made, forward-looking statements are not guarantees of future performance or events and undue reliance should not be placed on these statements.
The following important factors, among others, could cause actual results or events to differ materially from those expressed in forward-looking statements that may have been made in this document: our ability to obtain the intended benefits of our merger with PotlatchDeltic Corporation, including future financial and operating results; the cyclical and competitive nature of the industries in which we operate; fluctuations in demand for, or supply of, our forest products and real estate offerings, including any further downturn in the housing market; entry of new competitors into our markets; changes in production and production capacity in the forest products industry; unanticipated manufacturing disruptions or inefficiencies in our supply chain and/or operations; fires at our manufacturing facilities; changes in policy regarding governmental timber sales; changes in global economic conditions and geopolitical tensions, including the war in Ukraine and elevated tensions in the Middle East; business disruptions arising from government shutdowns, public health crises and outbreaks of communicable diseases; the uncertainties of potential impacts of climate-related initiatives; the cost and availability of third-party logging and trucking services; the geographic concentration of a significant portion of our timberland; our ability to identify, finance and complete timberland acquisitions and/or to complete dispositions; changes in timberland values; changes in environmental laws and regulations regarding timber harvesting, delineation of wetlands, endangered species and development of real estate generally, that may restrict or adversely impact our ability to conduct our business, or increase the cost of doing so; adverse weather conditions, natural disasters and other catastrophic events such as hurricanes, wind storms and wildfires; the lengthy, uncertain and costly process associated with the ownership, entitlement and development of real estate, especially in Florida and Washington, including changes in law, policy and political factors beyond our control; the availability and cost of financing for real estate development and mortgage loans; changes in tariffs, taxes or treaties relating to the import and export of our products, our customers’ products or those of our and our customers’ competitors; changes in key management and personnel; and our ability to meet all necessary legal requirements to continue to qualify as a real estate investment trust (“REIT”) and changes in tax laws that could adversely affect beneficial tax treatment.
For additional factors that could impact future results, please see Item 1A - Risk Factors in the Company’s most recent Annual Report on Form 10-K and similar discussion included in other reports that we subsequently file with the Securities and Exchange Commission (the “SEC”). Forward-looking statements are only as of the date they are made, and the Company undertakes no duty to update its forward-looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our subsequent reports filed with the SEC.
Non-GAAP Financial Measures - To supplement Rayonier’s financial statements presented in accordance with generally accepted accounting principles in the United States (“GAAP”), Rayonier uses certain non-GAAP measures, including “cash available for distribution,” “pro forma operating income (loss),” “pro forma net income (loss),” and “Adjusted EBITDA,” which are defined and further explained in this communication. Reconciliation of such measures to the nearest GAAP measures can also be found in this communication. Rayonier’s definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.
RAYONIER INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED INCOME
March 31, 2026 (unaudited)
(millions of dollars, except per share information)
Three Months Ended
March 31,
December 31,
March 31,
2026
2025
2025
SALES
$276.8
$117.5
$82.9
Costs and Expenses
Cost of sales
(230.3
)
(68.2
)
(65.0
)
Selling and general expenses
(21.8
)
(16.1
)
(16.7
)
Other operating expense, net
(70.4
)
(6.2
)
(1.1
)
OPERATING (LOSS) INCOME
(45.7
)
27.0
0.1
Interest expense, net
(14.3
)
(6.7
)
(6.4
)
Interest income
7.2
9.3
2.9
Other miscellaneous income (expense), net
0.9
(3.2
)
(1.9
)
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
(51.9
)
26.4
(5.3
)
Income tax benefit (expense)
39.4
(0.2
)
(0.3
)
(LOSS) INCOME FROM CONTINUING OPERATIONS
(12.5
)
26.2
(5.6
)
Income from operations of discontinued operations, net of tax
—
—
2.5
NET (LOSS) INCOME
(12.5
)
26.2
(3.1
)
Less: Net loss (income) attributable to noncontrolling interests in the Operating Partnership
0.1
(0.3
)
0.1
Less: Net income attributable to noncontrolling interests in consolidated affiliates
—
—
(0.4
)
NET (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC.
($12.4
)
$25.9
($3.4
)
(LOSS) EARNINGS PER COMMON SHARE
BASIC (LOSS) EARNINGS PER SHARE ATTRIBUTABLE TO RAYONIER INC.
Continuing Operations
($0.05
)
$0.17
($0.04
)
Discontinued Operations
—
—
$0.01
Net Income
($0.05
)
$0.17
($0.02
)
DILUTED (LOSS) EARNINGS PER SHARE ATTRIBUTABLE TO RAYONIER INC.
Continuing Operations
($0.05
)
$0.16
($0.04
)
Discontinued Operations
—
—
$0.01
Net Income
($0.05
)
$0.16
($0.02
)
Pro forma net income (loss) per share (a)
$0.07
$0.20
($0.02
)
Weighted Average Common Shares used for determining
Basic EPS
255,954,391
155,506,254
153,677,854
Diluted EPS (b)
255,954,391
162,170,418
153,677,854
(a)
Pro forma net income per share is a non-GAAP measure. See Schedule F for definition and reconciliation to the nearest GAAP measure.
(b)
Diluted earnings per share is calculated based on the weighted average number of shares of common stock outstanding combined with the incremental weighted average number of shares that would have been outstanding assuming all potentially dilutive securities (including Redeemable Operating Partnership Units) were converted into shares of common stock at the earliest date possible. The incremental weighted average number of shares used for determining diluted EPS for the three months ended December 31, 2025 also includes 4,866,708 of contingently issuable shares from the additional dividend of $1.40 per share, which was declared on October 14, 2025. For the three months ended March 31, 2026 and 2025, because net (loss) earnings from continuing operations was a loss, the effect of anti-dilutive securities was excluded in the denominator of calculating diluted EPS. As of March 31, 2026, there were 301,675,323 common shares and 1,682,257 Redeemable Operating Partnership Units outstanding.
A
RAYONIER INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2026 (unaudited)
(millions of dollars)
March 31,
December 31,
2026
2025
Assets
Cash and cash equivalents
$681.7
$842.9
Inventory
113.2
6.8
Assets held for sale
28.4
5.4
Other current assets
72.4
28.6
Timber and timberlands, net of depletion and amortization
5,867.7
2,299.5
Higher and better use timberlands and real estate development investments
187.6
126.1
Property, plant and equipment
606.8
39.4
Less - accumulated depreciation
(28.4
)
(20.9
)
Net property, plant and equipment
578.4
18.5
Restricted cash, non-current
0.5
0.5
Operating lease right-of-use assets
23.5
16.3
Other assets
192.0
60.1
$7,745.4
$3,404.7
Liabilities, Noncontrolling Interests in the Operating Partnership and Shareholders’ Equity
Current maturities of long-term debt
200.0
200.0
Other current liabilities
154.1
71.3
Long-term debt
1,855.1
845.3
Pension and other postretirement benefits, non-current
61.6
1.4
Other non-current liabilities
105.3
36.5
Noncontrolling interests in the Operating Partnership
39.9
40.5
Total shareholders’ equity
5,329.4
2,209.7
$7,745.4
$3,404.7
B
RAYONIER INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
March 31, 2026 (unaudited)
(millions of dollars, except share information)
Common Shares
Retained Earnings
Accumulated
Other
Comprehensive Income
Shareholders’ Equity
Shares
Amount
Balance, January 1, 2026
161,425,616
$1,904.3
$280.9
$24.5
$2,209.7
Net loss
—
—
(12.5
)
—
(12.5
)
Net loss attributable to noncontrolling interests in the Operating Partnership
—
—
0.1
—
0.1
Dividends ($0.26 per share)
—
—
(81.1
)
—
(81.1
)
Issuance of shares associated with the merger with PotlatchDeltic, net of equity issuance costs of $0.9 million
140,872,342
3,202.6
—
—
3,202.6
Replacement equity awards granted in connection with the merger with PotlatchDeltic — precombination service portion
—
25.0
—
—
25.0
Issuance of shares under incentive stock plans
903,045
—
—
—
—
Stock-based incentive compensation
—
15.4
—
—
15.4
Repurchase of common shares made under repurchase program
(1,480,753
)
—
(31.1
)
—
(31.1
)
Other (a)
(44,927
)
(0.8
)
(0.1
)
2.2
1.3
Balance, March 31, 2026
301,675,323
$5,146.5
$156.2
$26.7
$5,329.4
Common Shares
Retained Earnings
Accumulated
Other
Comprehensive Loss
Noncontrolling Interests in Consolidated Affiliates
Shareholders’ Equity
Shares
Amount
Balance, January 1, 2025
148,536,643
$1,522.5
$257.2
($10.4
)
$11.2
$1,780.5
Loss from continuing operations
—
—
(5.6
)
—
—
(5.6
)
Income from discontinued operations
—
—
2.1
—
0.4
2.5
Net loss attributable to noncontrolling interests in the Operating Partnership
—
—
0.1
—
—
0.1
Dividends ($0.2725 per share)
—
—
(42.7
)
—
—
(42.7
)
Issuance of common shares from special
dividend (b)
7,560,983
200.4
—
—
—
200.4
Issuance of shares under incentive stock plans
5,566
—
—
—
—
—
Stock-based incentive compensation
—
2.3
—
—
—
2.3
Repurchase of common shares made under repurchase program
(95,000
)
—
(2.6
)
—
—
(2.6
)
Adjustment of noncontrolling interests in the Operating Partnership
—
—
(4.3
)
—
—
(4.3
)
Other (a)
(420
)
—
—
(3.9
)
(1.4
)
(5.3
)
Balance, March 31, 2025
156,007,772
$1,725.2
$204.2
($14.3
)
$10.2
$1,925.3
(a)
Primarily includes shares purchased from employees in non-open market transactions to pay withholding taxes associated with the vesting of shares granted under the Company’s Incentive Stock Plan, dividend equivalents on deferred stock, pension and post-retirement benefit plan adjustments, foreign currency translation adjustments, mark-to-market adjustments of qualifying cash flow hedges, distributions to noncontrolling interests in consolidated affiliates and the allocation of other comprehensive income (loss) to noncontrolling interests in the Operating Partnership. The three months ended March 31, 2026 and March 31, 2025 also includes the redemption of 637 and 1,000 Redeemable Operating Partnership Units, respectively, for an equal number of Rayonier Inc. common shares.
(b)
Reflects the issuance of shares related to the Company’s special dividend of $1.80 per common share, paid on January 30, 2025, to shareholders of record as of December 12, 2024. This dividend comprised a combination of cash and the Company’s common shares.
C
RAYONIER INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
March 31, 2026 (unaudited)
(millions of dollars)
Three Months Ended March 31,
2026
2025
Cash provided by operating activities:
Net loss
($12.5
)
($3.1
)
Depreciation, depletion and amortization from continuing operations
56.2
23.5
Depreciation, depletion and amortization from discontinued operations
—
4.3
Non-cash cost of land and improved development
12.0
2.4
Stock-based incentive compensation expense
15.4
2.3
Deferred income taxes
(39.5
)
(1.0
)
Other items to reconcile net income to cash provided by operating activities
1.7
8.7
Changes in working capital and other assets and liabilities
1.3
(9.4
)
34.6
27.7
Cash used for investing activities:
Capital expenditures from continuing operations
(20.4
)
(12.0
)
Capital expenditures from discontinued operations
—
(2.7
)
Real estate development investments
(4.5
)
(4.1
)
Net cash consideration for merger with PotlatchDeltic
(24.8
)
—
Interest received under swaps with other-than-insignificant financing element
4.1
—
Other
(7.4
)
(2.6
)
(53.0
)
(21.4
)
Cash used for financing activities:
Repayment of debt
(27.5
)
—
Dividends paid (a)
(81.1
)
(110.4
)
Distributions to noncontrolling interests in the Operating Partnership (b)
(0.4
)
(1.5
)
Equity issuance costs
(0.9
)
—
Repurchase of common shares made under repurchase program
(31.1
)
(2.6
)
Distributions to noncontrolling interests in consolidated affiliates
—
(1.9
)
Other
(1.8
)
(0.1
)
(142.8
)
(116.5
)
Cash, cash equivalents and restricted cash:
Change in cash, cash equivalents and restricted cash
(161.2
)
(110.2
)
Balance from continuing operations, beginning of year
843.4
323.1
Balance from discontinued operations, beginning of year
—
20.1
Total Balance, beginning of year
843.4
343.2
Balance from continuing operations, end of period
682.2
216.9
Balance from discontinued operations, end of period
—
16.1
Total Balance, end of period
$682.2
$233.0
(a)
The three months ended March 31, 2025 includes an additional dividend of $1.80 per common share, consisting of a combination of cash and the Company’s common shares. The cash portion of $67.8 million was paid on January 30, 2025, to shareholders of record on December 12, 2024.
(b)
The three months ended March 31, 2025 includes an additional distribution of $1.80 per Redeemable Operating Partnership Unit, consisting of a combination of cash and the Company’s Redeemable Operating Partnership Units. The cash portion of $0.9 million was paid on January 30, 2025, to holders of record on December 12, 2024.
D
RAYONIER INC. AND SUBSIDIARIES
BUSINESS SEGMENT SALES, OPERATING (LOSS) INCOME,
PRO FORMA OPERATING INCOME AND ADJUSTED EBITDA
March 31, 2026 (unaudited)
(millions of dollars)
Three Months Ended
March 31,
December 31,
March 31,
2026
2025
2025
Sales
Southern Timber
$88.7
$57.2
$50.9
Northwest Timber
32.1
18.0
21.8
Wood Products
108.5
—
—
Real Estate
59.8
42.3
10.2
Intersegment Eliminations (a)
(12.2
)
—
—
Sales
$276.8
$117.5
$82.9
Operating (loss) income
Southern Timber
$12.4
$15.8
$10.1
Northwest Timber
(0.4
)
(1.6
)
0.3
Wood Products
(1.0
)
—
—
Real Estate
27.4
27.1
(1.0
)
Corporate and Other
(82.8
)
(14.3
)
(9.3
)
Intersegment Eliminations (a)
(1.2
)
—
—
Operating (loss) income
($45.7
)
$27.0
$0.1
Pro forma operating income (loss) (b)
Southern Timber
$12.4
$15.8
$10.1
Northwest Timber
(0.4
)
(1.6
)
0.3
Wood Products
0.1
—
—
Real Estate
27.4
27.1
(1.0
)
Corporate and Other
(12.3
)
(8.0
)
(8.2
)
Intersegment Eliminations (a)
(1.2
)
—
—
Pro forma operating income
$25.9
$33.3
$1.2
Adjusted EBITDA (b)
Southern Timber
$45.5
$32.0
$27.0
Northwest Timber
8.6
4.6
5.9
Wood Products
6.8
—
—
Real Estate
46.2
32.7
2.0
Corporate and Other
(11.8
)
(7.5
)
(7.9
)
Intersegment Eliminations (a)
(1.2
)
—
—
Adjusted EBITDA
$94.1
$61.7
$27.1
(a)
Intersegment eliminations represents logs sold by the Timber segments to Wood Products, and includes the elimination of intersegment profit remaining in ending Wood Products inventory.
(b)
Pro forma operating income (loss) and Adjusted EBITDA are non-GAAP measures. See Schedule F for definitions and reconciliations.
E
RAYONIER INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
March 31, 2026 (unaudited)
(millions of dollars, except per share information)
LIQUIDITY MEASURES:
Three Months Ended
March 31,
March 31,
2026
2025
Cash Provided by Operating Activities
$34.6
$27.7
Working capital and other balance sheet changes
5.6
13.6
Costs related to the merger with PotlatchDeltic (a)
70.4
—
Capital expenditures
(20.4
)
(12.0
)
Cash provided by operating activities from discontinued operations
—
(9.0
)
Cash Available for Distribution (b)
$90.2
$20.3
Net Loss
($12.5
)
($3.1
)
Interest, net and miscellaneous expense
7.1
3.5
Income tax (benefit) expense (c)
(39.4
)
0.3
Depreciation, depletion and amortization
56.2
23.5
Non-cash cost of land and improved development
12.0
2.4
Non-operating (income) expense (d)
(0.9
)
1.8
Costs related to the merger with PotlatchDeltic (a)
70.4
—
Inventory purchase price adjustment in cost of sales (e)
1.2
—
Restructuring charges (f)
—
1.1
Income from operations of discontinued operations, net of tax (g)
—
(2.5
)
Adjusted EBITDA (h)
$94.1
$27.1
Cash interest received, net (i)
16.5
5.5
Cash taxes paid
—
(0.3
)
Capital expenditures
(20.4
)
(12.0
)
Cash Available for Distribution (b)
$90.2
$20.3
Cash Available for Distribution (b)
$90.2
$20.3
Real estate development investments
(4.5
)
(4.1
)
Cash Available for Distribution after real estate development investments
$85.6
$16.2
PRO FORMA NET INCOME (LOSS) (j):
Three Months Ended
March 31, 2026
December 31, 2025
March 31, 2025
$
Per Diluted Share
$
Per Diluted Share
$
Per Diluted Share
Net (Loss) Income Attributable to Rayonier Inc.
($12.4
)
($0.05
)
$25.9
$0.16
($3.4
)
($0.02
)
Pro Forma items net of tax:
Costs related to the merger with PotlatchDeltic (a)
69.5
0.27
6.3
0.04
—
—
Inventory purchase price adjustment in cost of sales (e)
0.9
—
—
—
—
—
Tax benefit from valuation allowance release (k)
(40.3
)
(0.16
)
—
—
—
—
Income from operations of discontinued operations (g)
—
—
—
—
(2.5
)
(0.02
)
Restructuring charges (f)
—
—
—
—
1.1
0.01
Net cost on legal settlements (l)
—
—
—
—
1.7
0.01
Pro forma net income (loss) adjustments attributable to noncontrolling interests (m)
(0.2
)
—
(0.1
)
—
0.4
—
Pro Forma Net Income (Loss)
$17.4
$0.07
$32.1
$0.20
($2.7
)
($0.02
)
PRO FORMA OPERATING INCOME (LOSS) AND ADJUSTED EBITDA (n) (h):
Three Months Ended
Southern Timber
Northwest Timber
Wood Products
Real
Estate
Corporate
and
Other
Intersegment Eliminations
Total
March 31, 2026
Operating income (loss)
$12.4
($0.4
)
($1.0
)
$27.4
($82.8
)
($1.2
)
($45.7
)
Costs related to the merger with PotlatchDeltic (a)
—
—
—
—
70.4
—
70.4
Inventory purchase price adjustment in cost of sales (e)
—
—
1.2
—
—
—
1.2
Pro forma operating income (loss)
$12.4
($0.4
)
$0.1
$27.4
($12.3
)
($1.2
)
$25.9
Depreciation, depletion and amortization
33.1
9.0
6.7
6.9
0.6
—
56.2
Non-cash cost of land and improved development
—
—
—
12.0
—
—
12.0
Adjusted EBITDA
$45.5
$8.6
$6.8
$46.2
($11.8
)
($1.2
)
$94.1
December 31, 2025
Operating income (loss)
$15.8
($1.6
)
—
$27.1
($14.3
)
—
$27.0
Costs related to the merger with PotlatchDeltic (a)
—
—
—
—
6.3
—
6.3
Pro forma operating income (loss)
$15.8
($1.6
)
—
$27.1
($8.0
)
—
$33.3
Depreciation, depletion and amortization
16.2
6.2
—
1.9
0.4
—
24.7
Non-cash cost of land and improved development
—
—
—
3.7
—
—
3.7
Adjusted EBITDA
$32.0
$4.6
—
$32.7
($7.5
)
—
$61.7
March 31, 2025
Operating income (loss)
$10.1
$0.3
—
($1.0
)
($9.3
)
—
$0.1
Restructuring charges (f)
—
—
—
—
1.1
—
1.1
Pro forma operating income (loss)
$10.1
$0.3
—
($1.0
)
($8.2
)
—
$1.2
Depreciation, depletion and amortization
16.9
5.6
—
0.6
0.4
—
23.5
Non-cash cost of land and improved development
—
—
—
2.4
—
—
2.4
Adjusted EBITDA
$27.0
$5.9
—
$2.0
($7.9
)
—
$27.1
(a)
“Costs related to the merger with PotlatchDeltic” include professional services fees, employee-related costs, accelerated stock-based compensation, and other integration-related costs incurred in connection with the merger, which closed on January 30, 2026.
(b)
“Cash Available for Distribution” (CAD) is defined as cash provided by operating activities adjusted for capital spending (excluding timberland acquisitions and real estate development investments) and working capital and other balance sheet changes. CAD is a non-GAAP measure of cash generated during a period that is available for common share dividends, distributions to Operating Partnership unitholders, common share repurchases, debt reduction, timberland acquisitions and real estate development investments. CAD is not necessarily indicative of the CAD that may be generated in future periods.
(c)
The three months ended March 31, 2026 includes a $40.3 million tax benefit from our valuation allowance release. (d)
The three months ended March 31, 2025 includes $1.7 million of net costs associated with legal settlements. (e)
“Inventory purchase price adjustment in cost of sales” reflects a non-cash, one-time charge reflecting the excess of fair value over PotlatchDeltic’s historical cost on acquired finished goods inventory sold post-closing. (f)
“Restructuring charges” include severance costs related to workforce optimization initiatives. (g)
“Income from operations of discontinued operations, net of tax” includes income generated by the Company’s New Zealand joint venture interest, which was classified as discontinued operations prior to its June 30, 2025 disposition. (h)
“Adjusted EBITDA” is defined as earnings before interest, taxes, depreciation, depletion, amortization, the non-cash cost of land and improved development, non-operating (income) expense, costs related to the merger with PotlatchDeltic, an inventory purchase price adjustment in cost of sales, restructuring charges, income from operations of discontinued operations and Large Dispositions. Adjusted EBITDA is a non-GAAP measure that management uses to make strategic decisions about the business and that investors can use to evaluate the operational performance of the assets under management. It excludes specific items that management believes are not indicative of the Company’s ongoing operating results. (i)
“Cash interest received, net” includes patronage refunds received of $14.8 million and $7.7 million during the three months ended March 31, 2026 and March 31, 2025, respectively. In addition, cash interest received, net includes cash interest received of $7.1 million and $2.9 million during the three months ended March 31, 2026 and March 31, 2025, respectively. (j)
“Pro forma net income (loss)” is defined as net income (loss) attributable to Rayonier Inc. adjusted for its proportionate share of costs related to the merger with PotlatchDeltic, an inventory purchase price adjustment in cost of sales, a tax benefit from valuation allowance release, income from operations of discontinued operations (net of tax), net costs associated with legal settlements, restructuring charges and Large Dispositions. Rayonier believes that this non-GAAP financial measure provides investors with useful information to evaluate our core business operations because it excludes specific items that are not indicative of the Company’s ongoing operating results. (k)
“Tax benefit from valuation allowance release" reflects a non-cash release of Rayonier's pre-existing valuation allowance, triggered by deferred tax liabilities recognized in the PotlatchDeltic purchase price allocation. (l)
“Net cost on legal settlements” reflects the net loss from litigation regarding insurance claims. (m)
“Pro forma net income (loss) adjustments attributable to noncontrolling interests” are the proportionate share of pro forma items that are attributable to noncontrolling interests. (n)
“Pro forma operating income (loss)” is defined as operating income (loss) adjusted for costs related to the merger with PotlatchDeltic, an inventory purchase price adjustment in cost of sales, restructuring charges and Large Dispositions. Rayonier believes that this non-GAAP financial measure provides investors with useful information to evaluate our core business operations because it excludes specific items that are not indicative of the Company’s ongoing operating results. F
Rayonier (RYN - Free Report) came out with quarterly earnings of $0.07 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to a loss of $0.02 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +27.27%. A quarter ago, it was expected that this forest products company would post earnings of $0.12 per share when it actually produced earnings of $0.2, delivering a surprise of +66.67%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Rayonier, which belongs to the Zacks Building Products - Wood industry, posted revenues of $276.8 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 2.17%. This compares to year-ago revenues of $82.9 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Rayonier shares have lost about 4.4% since the beginning of the year versus the S&P 500's gain of 6%.
What's Next for Rayonier?While Rayonier has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Rayonier was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.09 on $400 million in revenues for the coming quarter and $0.42 on $1.53 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Wood is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Construction sector, Aspen Aerogels (ASPN - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.
This maker of insulation products is expected to post quarterly loss of $0.27 per share in its upcoming report, which represents a year-over-year change of -350%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Aspen Aerogels' revenues are expected to be $36.56 million, down 53.6% from the year-ago quarter.
JACKSONVILLE, Fla.--(BUSINESS WIRE)--Rayonier Advanced Materials Inc. (NYSE: RYAM) (“RYAM” or the “Company”) today announced that its Board of Directors has elected Julie A. Dill as Non-Executive Chair of the Board, effective May 14, 2026. Ms. Dill succeeds Lisa M. Palumbo, who has completed her second two-year term as Chair and will continue to serve as an independent director. Ms. Dill has served on the RYAM Board since 2018 and brings extensive leadership experience across the energy, indust.
WILDLIGHT, Fla.--(BUSINESS WIRE)--Rayonier Inc. (NYSE:RYN) announced today that the Company’s board of directors has declared a second quarter cash dividend of $0.26 per common share. The dividend is payable on June 30, 2026, to shareholders of record on June 16, 2026.
The Company also announced today that the Company’s board of directors, in its capacity as the board of directors of the general partner of Rayonier, L.P., has declared a second quarter cash distribution of $0.26 per operating partnership unit. The cash distribution is payable on June 30, 2026, to holders of record on June 16, 2026.
About Rayonier
Rayonier is a land resources real estate investment trust (REIT) with a portfolio comprising over four million acres in the U.S. South and U.S. Northwest. The company is focused on managing its timberlands on a sustainable basis while optimizing its overall portfolio value by delivering land to its highest and best use. Rayonier also operates six sawmills, an industrial-grade plywood mill, residential and commercial real estate developments, and a rural land sales program. Rayonier is committed to corporate responsibility, third-party forest certification, and supporting climate change mitigation through its land-based solutions business. More information is available at www.rayonier.com.
WILDLIGHT, Fla.--(BUSINESS WIRE)--Rayonier Inc. (NYSE:RYN) announced today that members of its management team will present at Nareit's REITweek: 2026 Investor Conference on Wednesday, June 3 at 1:15 p.m. Eastern Time in New York, NY. To access a live webcast of the presentation, participants can visit the Investor Relations section of Rayonier's website at www.rayonier.com and follow the registration link. The webcast will be available for replay on the Company's website shortly after the live.
Rayonier offers unique hard asset exposure, trading at a rare 27% discount to estimated NAV and a 57% discount to its historical price-to-book. RYN's diversified portfolio includes timberland, real estate, solar, and over 4.1 million acres, with significant optionality in higher-and-better-use land strategies. The PotlatchDeltic merger increased RYN's exposure to cyclical lumber manufacturing, pressuring margins, but the real estate and solar segments provide high-margin, lumpy upside.
Rayonier's post-merger profile is defined by optionality—land monetization, solar, and carbon capture—but recurring earnings remain volatile and hard to model. Current valuation appears to price in successful integration and optionality monetization, with EV/EBITDA multiples (~29x TTM) elevated versus sector norms. Q1 2026 results are heavily adjusted, with pro forma operating income positive only after significant normalization; recurring operating trends remain unclear.
Rayonier Inc. trades below its "sum-of-the-parts" net asset value after the PotlatchDeltic merger but lacks a near-term catalyst. The Real Estate segment beat Q1 guidance at $46.2M of EBITDA, but soft timber and lumber pricing left dividend coverage tight. Management targets $40 million in annual merger cost savings within 24 months; none has reached the income statement yet.
The Undercovered Dozen series spotlights 12 lesser-covered stocks featured on Seeking Alpha between May 22 and May 28. This curated selection aims to provide fresh investment ideas and foster community discussion around under-the-radar equities. Readers are encouraged to engage, share perspectives, and highlight additional overlooked investment opportunities.
Swiss Re (OTCMKTS:SSREY - Get Free Report) and MGIC Investment (NYSE: MTG - Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings. Earnings and Valuation This table compares Swiss Re
Assenagon Asset Management S.A. bought a new stake in shares of MGIC Investment Corporation (NYSE:MTG – Free Report) during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm bought 135,914 shares of the insurance provider’s stock, valued at approximately $3,971,000. Assenagon Asset Management S.A. owned 0.06% of MGIC Investment as of its most recent filing with the Securities and Exchange Commission.
Other large investors have also modified their holdings of the company. Norges Bank bought a new position in shares of MGIC Investment during the second quarter valued at approximately $95,857,000. AQR Capital Management LLC raised its stake in MGIC Investment by 92.4% in the second quarter. AQR Capital Management LLC now owns 6,333,091 shares of the insurance provider’s stock worth $176,313,000 after buying an additional 3,041,446 shares in the last quarter. First Trust Advisors LP raised its stake in MGIC Investment by 48.1% in the second quarter. First Trust Advisors LP now owns 7,302,263 shares of the insurance provider’s stock worth $203,295,000 after buying an additional 2,370,403 shares in the last quarter. Assetmark Inc. lifted its holdings in MGIC Investment by 1,208.1% during the third quarter. Assetmark Inc. now owns 1,674,152 shares of the insurance provider’s stock worth $47,496,000 after buying an additional 1,546,173 shares during the period. Finally, Caisse de depot et placement du Quebec boosted its position in MGIC Investment by 20.4% during the 3rd quarter. Caisse de depot et placement du Quebec now owns 3,943,965 shares of the insurance provider’s stock valued at $111,890,000 after acquiring an additional 667,876 shares in the last quarter. Institutional investors own 95.58% of the company’s stock.
Wall Street Analysts Forecast Growth MTG has been the subject of several recent research reports. UBS Group reduced their price target on MGIC Investment from $29.50 to $28.00 and set a “neutral” rating for the company in a research report on Thursday, March 12th. Weiss Ratings downgraded shares of MGIC Investment from a “buy (a-)” rating to a “buy (b+)” rating in a report on Thursday, February 5th. Keefe, Bruyette & Woods raised their price target on shares of MGIC Investment from $27.00 to $28.00 and gave the company a “market perform” rating in a report on Thursday, December 18th. Finally, Barclays reduced their price objective on shares of MGIC Investment from $30.00 to $28.00 and set an “equal weight” rating for the company in a research note on Wednesday, February 4th. One investment analyst has rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, MGIC Investment presently has a consensus rating of “Hold” and a consensus price target of $28.00.
Read Our Latest Analysis on MGIC Investment
MGIC Investment Stock Down 0.1% NYSE:MTG opened at $25.71 on Monday. The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 0.13. MGIC Investment Corporation has a twelve month low of $21.94 and a twelve month high of $29.97. The company has a market cap of $5.53 billion, a PE ratio of 8.19, a P/E/G ratio of 2.04 and a beta of 0.83. The company’s 50 day moving average is $26.49 and its two-hundred day moving average is $27.55.
MGIC Investment (NYSE:MTG – Get Free Report) last posted its quarterly earnings data on Monday, February 2nd. The insurance provider reported $0.75 EPS for the quarter, topping the consensus estimate of $0.73 by $0.02. MGIC Investment had a net margin of 60.84% and a return on equity of 14.33%. The firm’s revenue was down .9% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.72 earnings per share. Analysts anticipate that MGIC Investment Corporation will post 2.71 EPS for the current year.
MGIC Investment Dividend Announcement The company also recently disclosed a quarterly dividend, which was paid on Friday, March 6th. Stockholders of record on Tuesday, February 17th were paid a $0.15 dividend. This represents a $0.60 annualized dividend and a dividend yield of 2.3%. The ex-dividend date was Tuesday, February 17th. MGIC Investment’s dividend payout ratio (DPR) is presently 19.11%.
Insider Transactions at MGIC Investment In related news, CEO Timothy J. Mattke sold 139,203 shares of MGIC Investment stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $26.51, for a total transaction of $3,690,271.53. Following the completion of the sale, the chief executive officer owned 822,588 shares of the company’s stock, valued at $21,806,807.88. The trade was a 14.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, COO Salvatore A. Miosi sold 30,000 shares of the company’s stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $27.27, for a total transaction of $818,100.00. Following the completion of the sale, the chief operating officer directly owned 454,245 shares in the company, valued at $12,387,261.15. This trade represents a 6.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 189,203 shares of company stock worth $5,058,572 over the last three months. 1.34% of the stock is currently owned by insiders.
MGIC Investment Profile (Free Report)
MGIC Investment Corporation (NYSE: MTG) is a leading provider of private mortgage insurance in the United States. Established in 1957 as the nation’s first private mortgage insurer, MGIC helps lenders manage credit risk and facilitates homeownership by protecting mortgage loans against default. Headquartered in Milwaukee, Wisconsin, the company operates through its principal subsidiary, Mortgage Guaranty Insurance Corporation, and maintains relationships with a broad network of originators and servicers nationwide.
The company’s primary business activity involves issuing mortgage insurance policies that enable borrowers to purchase homes with down payments below traditional lending thresholds.
Read More Five stocks we like better than MGIC Investment Want to see what other hedge funds are holding MTG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for MGIC Investment Corporation (NYSE:MTG – Free Report).
Receive News & Ratings for MGIC Investment Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MGIC Investment and related companies with MarketBeat.com's FREE daily email newsletter.
Burns Matteson Capital Management LLC purchased a new stake in shares of MGIC Investment Corporation (NYSE:MTG – Free Report) in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 20,064 shares of the insurance provider’s stock, valued at approximately $586,000.
Several other hedge funds and other institutional investors also recently made changes to their positions in the business. Compound Planning Inc. lifted its position in shares of MGIC Investment by 5.3% during the 3rd quarter. Compound Planning Inc. now owns 7,788 shares of the insurance provider’s stock worth $221,000 after purchasing an additional 389 shares during the last quarter. SBI Securities Co. Ltd. grew its holdings in MGIC Investment by 61.1% in the 3rd quarter. SBI Securities Co. Ltd. now owns 1,041 shares of the insurance provider’s stock valued at $30,000 after buying an additional 395 shares during the last quarter. Waddell & Associates LLC increased its position in MGIC Investment by 5.3% in the 3rd quarter. Waddell & Associates LLC now owns 8,090 shares of the insurance provider’s stock worth $230,000 after buying an additional 410 shares during the period. Clearstead Advisors LLC lifted its holdings in shares of MGIC Investment by 24.7% during the third quarter. Clearstead Advisors LLC now owns 2,209 shares of the insurance provider’s stock worth $63,000 after buying an additional 438 shares during the last quarter. Finally, Whittier Trust Co. of Nevada Inc. lifted its holdings in shares of MGIC Investment by 58.0% during the third quarter. Whittier Trust Co. of Nevada Inc. now owns 1,365 shares of the insurance provider’s stock worth $38,000 after buying an additional 501 shares during the last quarter. 95.58% of the stock is owned by institutional investors and hedge funds.
MGIC Investment Stock Performance MTG opened at $26.24 on Wednesday. The stock’s 50 day simple moving average is $26.48 and its 200-day simple moving average is $27.52. The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 0.13. The stock has a market cap of $5.64 billion, a PE ratio of 8.36, a P/E/G ratio of 2.07 and a beta of 0.83. MGIC Investment Corporation has a 1 year low of $21.94 and a 1 year high of $29.97.
MGIC Investment (NYSE:MTG – Get Free Report) last issued its earnings results on Monday, February 2nd. The insurance provider reported $0.75 EPS for the quarter, topping the consensus estimate of $0.73 by $0.02. MGIC Investment had a return on equity of 14.33% and a net margin of 60.84%.The business’s revenue for the quarter was down .9% compared to the same quarter last year. During the same period in the previous year, the company earned $0.72 earnings per share. Sell-side analysts forecast that MGIC Investment Corporation will post 2.71 EPS for the current year.
MGIC Investment Announces Dividend The firm also recently announced a quarterly dividend, which was paid on Friday, March 6th. Stockholders of record on Tuesday, February 17th were given a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 2.3%. The ex-dividend date was Tuesday, February 17th. MGIC Investment’s payout ratio is 19.11%.
Analyst Upgrades and Downgrades Several brokerages have recently issued reports on MTG. Keefe, Bruyette & Woods raised their price objective on shares of MGIC Investment from $27.00 to $28.00 and gave the stock a “market perform” rating in a research note on Thursday, December 18th. Barclays cut their target price on shares of MGIC Investment from $30.00 to $28.00 and set an “equal weight” rating for the company in a research note on Wednesday, February 4th. Weiss Ratings downgraded shares of MGIC Investment from a “buy (a-)” rating to a “buy (b+)” rating in a report on Thursday, February 5th. Finally, UBS Group decreased their price target on shares of MGIC Investment from $29.50 to $28.00 and set a “neutral” rating on the stock in a research report on Thursday, March 12th. One equities research analyst has rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, MGIC Investment presently has a consensus rating of “Hold” and a consensus price target of $28.00.
Read Our Latest Report on MTG
Insider Activity In related news, COO Salvatore A. Miosi sold 30,000 shares of the company’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $27.27, for a total value of $818,100.00. Following the sale, the chief operating officer owned 454,245 shares of the company’s stock, valued at $12,387,261.15. The trade was a 6.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Timothy J. Mattke sold 139,203 shares of the stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $26.51, for a total transaction of $3,690,271.53. Following the completion of the transaction, the chief executive officer directly owned 822,588 shares of the company’s stock, valued at $21,806,807.88. This trade represents a 14.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 189,203 shares of company stock worth $5,058,572. Corporate insiders own 1.34% of the company’s stock.
MGIC Investment Profile (Free Report)
MGIC Investment Corporation (NYSE: MTG) is a leading provider of private mortgage insurance in the United States. Established in 1957 as the nation’s first private mortgage insurer, MGIC helps lenders manage credit risk and facilitates homeownership by protecting mortgage loans against default. Headquartered in Milwaukee, Wisconsin, the company operates through its principal subsidiary, Mortgage Guaranty Insurance Corporation, and maintains relationships with a broad network of originators and servicers nationwide.
The company’s primary business activity involves issuing mortgage insurance policies that enable borrowers to purchase homes with down payments below traditional lending thresholds.
See Also Five stocks we like better than MGIC Investment Want to see what other hedge funds are holding MTG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for MGIC Investment Corporation (NYSE:MTG – Free Report).
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, /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) has announced plans to release its first quarter 2026 financial results after the market closes on Wednesday, April 29, 2026. A conference call/webcast has been scheduled for 10:00 a.m. Eastern Time on Thursday, April 30, 2026, to discuss the Company's results for the quarter ended March 31, 2026.
Individuals interested in joining by telephone should register for the call "here" to receive the dial-in number and unique PIN to access the call. It is recommended that you join the call at least 10 minutes before the conference call begins. The call is also being webcast and can be accessed via the Company's Investor website found at http://mtg.mgic.com under Newsroom. A replay of the webcast will be available on the Company's website through May 30, 2026.
About MGIC
Mortgage Guaranty Insurance Corporation (MGIC) (mgic.com), the principal subsidiary of MGIC Investment Corporation, provides mortgage insurance solutions that support responsible credit risk management for mortgage lenders and investors and enable borrowers to qualify for mortgages with lower down payments. As the founder and longstanding leader of today's private mortgage insurance industry, MGIC continues to guide the industry's evolution while serving as a trusted partner to lenders across the country.
From time-to-time MGIC Investment Corporation releases important information via postings on its corporate website, and via postings on MGIC's website, and it intends to continue to do so in the future. Such postings include corrections of previous disclosures and may be made without any other disclosure. Investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information for MGIC Investment Corporation alerts can be found at https://mtg.mgic.com/shareholder-services/email-alerts. For information about our underwriting and rates, see https://www.mgic.com/underwriting.
MGIC Investment Corporation (NYSE:MTG – Get Free Report) CEO Timothy Mattke sold 139,202 shares of MGIC Investment stock in a transaction on Thursday, April 2nd. The shares were sold at an average price of $26.49, for a total transaction of $3,687,460.98. Following the transaction, the chief executive officer owned 1,118,005 shares in the company, valued at approximately $29,615,952.45. This trade represents a 11.07% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
MGIC Investment Trading Down 0.1% Shares of MGIC Investment stock opened at $26.50 on Friday. MGIC Investment Corporation has a fifty-two week low of $21.94 and a fifty-two week high of $29.97. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.52 and a current ratio of 1.52. The company has a market capitalization of $5.70 billion, a P/E ratio of 8.44, a P/E/G ratio of 2.11 and a beta of 0.79. The company has a fifty day moving average of $26.47 and a 200 day moving average of $27.49.
MGIC Investment (NYSE:MTG – Get Free Report) last posted its quarterly earnings results on Monday, February 2nd. The insurance provider reported $0.75 EPS for the quarter, beating analysts’ consensus estimates of $0.73 by $0.02. MGIC Investment had a return on equity of 14.33% and a net margin of 60.84%.The company’s revenue was down .9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.72 EPS. On average, sell-side analysts anticipate that MGIC Investment Corporation will post 2.71 earnings per share for the current fiscal year.
MGIC Investment Dividend Announcement The firm also recently declared a quarterly dividend, which was paid on Friday, March 6th. Investors of record on Tuesday, February 17th were issued a $0.15 dividend. The ex-dividend date of this dividend was Tuesday, February 17th. This represents a $0.60 dividend on an annualized basis and a yield of 2.3%. MGIC Investment’s payout ratio is currently 19.11%.
Hedge Funds Weigh In On MGIC Investment Institutional investors have recently added to or reduced their stakes in the company. Alpine Bank Wealth Management bought a new position in shares of MGIC Investment during the 3rd quarter valued at approximately $28,000. Newbridge Financial Services Group Inc. bought a new stake in MGIC Investment in the third quarter worth $28,000. SBI Securities Co. Ltd. raised its stake in MGIC Investment by 61.1% during the third quarter. SBI Securities Co. Ltd. now owns 1,041 shares of the insurance provider’s stock valued at $30,000 after purchasing an additional 395 shares in the last quarter. V Square Quantitative Management LLC purchased a new stake in MGIC Investment during the fourth quarter valued at $36,000. Finally, Root Financial Partners LLC bought a new position in MGIC Investment during the third quarter valued at $38,000. Hedge funds and other institutional investors own 95.58% of the company’s stock.
Analyst Ratings Changes A number of equities research analysts have issued reports on the stock. UBS Group cut their price objective on shares of MGIC Investment from $29.50 to $28.00 and set a “neutral” rating for the company in a report on Thursday, March 12th. Barclays lowered their target price on shares of MGIC Investment from $30.00 to $28.00 and set an “equal weight” rating on the stock in a report on Wednesday, February 4th. Weiss Ratings cut shares of MGIC Investment from a “buy (a-)” rating to a “buy (b+)” rating in a research note on Thursday, February 5th. Finally, Keefe, Bruyette & Woods lifted their price target on shares of MGIC Investment from $27.00 to $28.00 and gave the company a “market perform” rating in a report on Thursday, December 18th. One analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $28.00.
Check Out Our Latest Stock Report on MGIC Investment
MGIC Investment Company Profile (Get Free Report)
MGIC Investment Corporation (NYSE: MTG) is a leading provider of private mortgage insurance in the United States. Established in 1957 as the nation’s first private mortgage insurer, MGIC helps lenders manage credit risk and facilitates homeownership by protecting mortgage loans against default. Headquartered in Milwaukee, Wisconsin, the company operates through its principal subsidiary, Mortgage Guaranty Insurance Corporation, and maintains relationships with a broad network of originators and servicers nationwide.
The company’s primary business activity involves issuing mortgage insurance policies that enable borrowers to purchase homes with down payments below traditional lending thresholds.
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SG Americas Securities LLC raised its holdings in shares of MGIC Investment Corporation (NYSE:MTG – Free Report) by 103.0% in the 4th quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 46,708 shares of the insurance provider’s stock after acquiring an additional 23,704 shares during the quarter. SG Americas Securities LLC’s holdings in MGIC Investment were worth $1,365,000 as of its most recent filing with the SEC.
Other institutional investors and hedge funds have also made changes to their positions in the company. Alps Advisors Inc. boosted its position in shares of MGIC Investment by 60.6% during the 3rd quarter. Alps Advisors Inc. now owns 701,943 shares of the insurance provider’s stock worth $19,914,000 after acquiring an additional 264,968 shares in the last quarter. Lingohr Asset Management GmbH boosted its position in shares of MGIC Investment by 1,625.5% during the 3rd quarter. Lingohr Asset Management GmbH now owns 233,534 shares of the insurance provider’s stock worth $6,625,000 after acquiring an additional 220,000 shares in the last quarter. Thrivent Financial for Lutherans boosted its position in shares of MGIC Investment by 17.8% during the 3rd quarter. Thrivent Financial for Lutherans now owns 472,083 shares of the insurance provider’s stock worth $13,393,000 after acquiring an additional 71,474 shares in the last quarter. Tudor Investment Corp ET AL boosted its position in shares of MGIC Investment by 106.1% during the 3rd quarter. Tudor Investment Corp ET AL now owns 687,445 shares of the insurance provider’s stock worth $19,503,000 after acquiring an additional 353,935 shares in the last quarter. Finally, Moody Aldrich Partners LLC acquired a new position in shares of MGIC Investment during the 3rd quarter worth about $4,648,000. 95.58% of the stock is owned by institutional investors and hedge funds.
Analyst Ratings Changes MTG has been the subject of several analyst reports. Barclays upped their price objective on MGIC Investment from $28.00 to $29.00 and gave the stock an “equal weight” rating in a research report on Monday. Weiss Ratings downgraded MGIC Investment from a “buy (a-)” rating to a “buy (b+)” rating in a report on Thursday, February 5th. Keefe, Bruyette & Woods boosted their target price on MGIC Investment from $27.00 to $28.00 and gave the company a “market perform” rating in a report on Thursday, December 18th. Finally, UBS Group reduced their target price on MGIC Investment from $29.50 to $28.00 and set a “neutral” rating for the company in a report on Thursday, March 12th. One research analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, MGIC Investment has an average rating of “Hold” and an average target price of $28.25.
Check Out Our Latest Report on MGIC Investment
MGIC Investment Stock Performance NYSE MTG opened at $27.03 on Wednesday. The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 0.13. The business’s 50 day moving average is $26.49 and its two-hundred day moving average is $27.47. MGIC Investment Corporation has a 12-month low of $21.94 and a 12-month high of $29.97. The stock has a market capitalization of $5.81 billion, a price-to-earnings ratio of 8.61, a PEG ratio of 2.11 and a beta of 0.79.
MGIC Investment (NYSE:MTG – Get Free Report) last released its earnings results on Monday, February 2nd. The insurance provider reported $0.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.73 by $0.02. MGIC Investment had a return on equity of 14.33% and a net margin of 60.84%.During the same quarter in the previous year, the business posted $0.72 EPS. MGIC Investment’s revenue was down .9% on a year-over-year basis. Research analysts expect that MGIC Investment Corporation will post 2.71 EPS for the current year.
MGIC Investment Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Friday, March 6th. Shareholders of record on Tuesday, February 17th were given a dividend of $0.15 per share. The ex-dividend date was Tuesday, February 17th. This represents a $0.60 annualized dividend and a yield of 2.2%. MGIC Investment’s payout ratio is presently 19.11%.
Insiders Place Their Bets In other MGIC Investment news, COO Salvatore A. Miosi sold 30,000 shares of the business’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $27.27, for a total transaction of $818,100.00. Following the transaction, the chief operating officer owned 454,245 shares in the company, valued at approximately $12,387,261.15. The trade was a 6.20% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Paula C. Maggio sold 20,000 shares of the business’s stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $27.51, for a total value of $550,200.00. Following the transaction, the executive vice president owned 114,689 shares in the company, valued at $3,155,094.39. The trade was a 14.85% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 339,336 shares of company stock worth $9,032,971. Company insiders own 1.05% of the company’s stock.
MGIC Investment Profile (Free Report)
MGIC Investment Corporation (NYSE: MTG) is a leading provider of private mortgage insurance in the United States. Established in 1957 as the nation’s first private mortgage insurer, MGIC helps lenders manage credit risk and facilitates homeownership by protecting mortgage loans against default. Headquartered in Milwaukee, Wisconsin, the company operates through its principal subsidiary, Mortgage Guaranty Insurance Corporation, and maintains relationships with a broad network of originators and servicers nationwide.
The company’s primary business activity involves issuing mortgage insurance policies that enable borrowers to purchase homes with down payments below traditional lending thresholds.
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International General Insurance (NASDAQ:IGIC – Get Free Report) and MGIC Investment (NYSE:MTG – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Earnings and Valuation This table compares International General Insurance and MGIC Investment”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio International General Insurance $516.90 million 2.23 $127.20 million $2.87 9.00 MGIC Investment $1.21 billion 4.82 $738.35 million $3.14 8.67 MGIC Investment has higher revenue and earnings than International General Insurance. MGIC Investment is trading at a lower price-to-earnings ratio than International General Insurance, indicating that it is currently the more affordable of the two stocks.
Profitability This table compares International General Insurance and MGIC Investment’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets International General Insurance 24.61% 16.98% 5.45% MGIC Investment 60.84% 14.33% 11.21% Volatility & Risk International General Insurance has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500. Comparatively, MGIC Investment has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.
Analyst Ratings This is a summary of recent recommendations for International General Insurance and MGIC Investment, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score International General Insurance 0 0 2 0 3.00 MGIC Investment 0 4 1 0 2.20 International General Insurance currently has a consensus target price of $28.00, suggesting a potential upside of 8.40%. MGIC Investment has a consensus target price of $28.50, suggesting a potential upside of 4.72%. Given International General Insurance’s stronger consensus rating and higher probable upside, research analysts plainly believe International General Insurance is more favorable than MGIC Investment.
Dividends International General Insurance pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. MGIC Investment pays an annual dividend of $0.60 per share and has a dividend yield of 2.2%. International General Insurance pays out 7.0% of its earnings in the form of a dividend. MGIC Investment pays out 19.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. International General Insurance has raised its dividend for 2 consecutive years and MGIC Investment has raised its dividend for 6 consecutive years. MGIC Investment is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership 54.2% of International General Insurance shares are held by institutional investors. Comparatively, 95.6% of MGIC Investment shares are held by institutional investors. 20.1% of International General Insurance shares are held by company insiders. Comparatively, 1.3% of MGIC Investment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary MGIC Investment beats International General Insurance on 10 of the 17 factors compared between the two stocks.
About International General Insurance (Get Free Report)
International General Insurance Holdings Ltd. engages in the provision of specialty insurance and reinsurance solutions worldwide. The company operates through three segments: Specialty Long-tail, Specialty Short-tail, and Reinsurance. It is involved in underwriting a portfolio of specialty risks, including energy, property, construction and engineering, ports and terminals, general aviation, political violence, professional lines, financial institutions, motor, marine liability, contingency, marine, treaty, and casualty insurance and reinsurance. The company was founded in 2001 and is based in Amman, Jordan.
About MGIC Investment (Get Free Report)
MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government sponsored entities in the United States, the District of Columbia, Puerto Rico, and Guam. The company offers primary mortgage insurance that provides mortgage default protection on individual loans, as well as covers unpaid loan principal, delinquent interest, and various expenses associated with the default and subsequent foreclosure. It also provides pool insurance for secondary market mortgage transactions; and contract underwriting services, as well as reinsurance. The company serves originators of residential mortgage loans, including savings institutions, commercial banks, mortgage brokers, credit unions, mortgage bankers, and other lenders. MGIC Investment Corporation was founded in 1957 and is headquartered in Milwaukee, Wisconsin.
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MGIC Investment Corporation remains rated Hold due to persistent headwinds in the US housing market and lack of competitive differentiation. MTG's EPS growth is primarily driven by aggressive share buybacks, with a 31.9% share reduction over five years, masking declines in net income. Despite a five-year streak of dividend increases and robust capital returns, MTG faces rising net losses and uneven home buying activity in key states.
, /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) announced its board of directors has approved an additional share repurchase program with authorization to purchase up to $750 million of its common stock.
The company is authorized to repurchase shares of its common stock from time to time through privately negotiated, open market or other transactions (including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended) at any time prior to December 31, 2028. The share repurchase program may be suspended or discontinued at any time and does not require the company to acquire any amount of common stock.
The company also announced that its board of directors declared a quarterly cash dividend of $0.15 per share payable on May 21, 2026, to shareholders of record as of May 6, 2026.
As previously announced, the company will hold a conference call/webcast on Thursday, April 30, 2026, to discuss the results for the quarter ended March 31, 2026.
About MGIC
Mortgage Guaranty Insurance Corporation (MGIC) (mgic.com), the principal subsidiary of MGIC Investment Corporation, provides mortgage insurance solutions that support responsible credit risk management for mortgage lenders and investors and enable borrowers to qualify for mortgages with lower down payments. As the founder and longstanding leader of today's private mortgage insurance industry, MGIC continues to guide the industry's evolution while serving as a trusted partner to lenders across the country.
From time-to-time MGIC Investment Corporation releases important information via postings on its corporate website, and via postings on MGIC's website, and it intends to continue to do so in the future. Such postings include corrections of previous disclosures and may be made without any other disclosure. Investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information for MGIC Investment Corporation alerts can be found at https://mtg.mgic.com/shareholder-services/email-alerts. For information about our underwriting and rates, see https://www.mgic.com/underwriting.
Caprock Group LLC boosted its position in MGIC Investment Corporation (NYSE:MTG – Free Report) by 86.7% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 97,651 shares of the insurance provider’s stock after purchasing an additional 45,335 shares during the period. Caprock Group LLC’s holdings in MGIC Investment were worth $2,853,000 at the end of the most recent quarter.
Other institutional investors and hedge funds have also bought and sold shares of the company. Alpine Bank Wealth Management acquired a new position in MGIC Investment in the 3rd quarter worth about $28,000. Newbridge Financial Services Group Inc. acquired a new position in MGIC Investment in the 3rd quarter worth about $28,000. SBI Securities Co. Ltd. increased its holdings in MGIC Investment by 61.1% in the 3rd quarter. SBI Securities Co. Ltd. now owns 1,041 shares of the insurance provider’s stock worth $30,000 after purchasing an additional 395 shares in the last quarter. V Square Quantitative Management LLC acquired a new position in MGIC Investment in the 4th quarter worth about $36,000. Finally, Root Financial Partners LLC acquired a new position in MGIC Investment in the 3rd quarter worth about $38,000. Institutional investors and hedge funds own 95.58% of the company’s stock.
Insider Buying and Selling at MGIC Investment In other MGIC Investment news, CEO Timothy J. Mattke sold 139,202 shares of the company’s stock in a transaction dated Thursday, April 2nd. The stock was sold at an average price of $26.49, for a total value of $3,687,460.98. Following the sale, the chief executive officer owned 1,118,005 shares in the company, valued at approximately $29,615,952.45. The trade was a 11.07% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paula C. Maggio sold 20,000 shares of the company’s stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $27.51, for a total value of $550,200.00. Following the completion of the sale, the executive vice president owned 114,689 shares in the company, valued at $3,155,094.39. This trade represents a 14.85% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 200,133 shares of company stock worth $5,342,700. Insiders own 1.34% of the company’s stock.
MGIC Investment Trading Down 0.4% NYSE MTG opened at $28.66 on Friday. The business’s 50-day moving average price is $26.71 and its two-hundred day moving average price is $27.44. MGIC Investment Corporation has a 12 month low of $24.14 and a 12 month high of $29.97. The firm has a market capitalization of $6.16 billion, a PE ratio of 9.13, a price-to-earnings-growth ratio of 2.29 and a beta of 0.79. The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 0.13.
MGIC Investment (NYSE:MTG – Get Free Report) last released its quarterly earnings results on Monday, February 2nd. The insurance provider reported $0.75 EPS for the quarter, beating analysts’ consensus estimates of $0.73 by $0.02. MGIC Investment had a return on equity of 14.33% and a net margin of 60.84%.During the same period last year, the firm posted $0.72 EPS. MGIC Investment’s quarterly revenue was down .9% on a year-over-year basis. On average, analysts expect that MGIC Investment Corporation will post 3.08 EPS for the current year.
MGIC Investment announced that its Board of Directors has approved a stock repurchase plan on Thursday, April 23rd that allows the company to buyback $750.00 million in outstanding shares. This buyback authorization allows the insurance provider to reacquire up to 12.4% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board of directors believes its shares are undervalued.
MGIC Investment Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, May 21st. Shareholders of record on Wednesday, May 6th will be given a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date is Wednesday, May 6th. MGIC Investment’s payout ratio is 19.11%.
Wall Street Analysts Forecast Growth A number of equities analysts have issued reports on MTG shares. Keefe, Bruyette & Woods upped their target price on MGIC Investment from $28.00 to $29.00 and gave the stock a “market perform” rating in a report on Friday, April 10th. UBS Group lowered their target price on MGIC Investment from $29.50 to $28.00 and set a “neutral” rating for the company in a report on Thursday, March 12th. Barclays upped their target price on MGIC Investment from $28.00 to $29.00 and gave the stock an “equal weight” rating in a report on Monday, April 6th. Finally, Weiss Ratings cut MGIC Investment from a “buy (a-)” rating to a “buy (b+)” rating in a report on Thursday, February 5th. One analyst has rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $28.50.
View Our Latest Stock Report on MTG
About MGIC Investment (Free Report)
MGIC Investment Corporation (NYSE: MTG) is a leading provider of private mortgage insurance in the United States. Established in 1957 as the nation’s first private mortgage insurer, MGIC helps lenders manage credit risk and facilitates homeownership by protecting mortgage loans against default. Headquartered in Milwaukee, Wisconsin, the company operates through its principal subsidiary, Mortgage Guaranty Insurance Corporation, and maintains relationships with a broad network of originators and servicers nationwide.
The company’s primary business activity involves issuing mortgage insurance policies that enable borrowers to purchase homes with down payments below traditional lending thresholds.
See Also Five stocks we like better than MGIC Investment Want to see what other hedge funds are holding MTG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for MGIC Investment Corporation (NYSE:MTG – Free Report).
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MGIC Investment (NYSE:MTG – Get Free Report) will likely be posting its Q1 2026 results after the market closes on Wednesday, April 29th. Analysts expect MGIC Investment to post earnings of $0.73 per share and revenue of $303.0740 million for the quarter. Individuals may visit the the company’s upcoming Q1 2026 earning results page for the latest details on the call scheduled for Thursday, April 30, 2026 at 10:00 AM ET.
MGIC Investment (NYSE:MTG – Get Free Report) last issued its quarterly earnings results on Monday, February 2nd. The insurance provider reported $0.75 EPS for the quarter, topping the consensus estimate of $0.73 by $0.02. MGIC Investment had a net margin of 60.84% and a return on equity of 14.33%. During the same quarter in the previous year, the business earned $0.72 EPS. The firm’s quarterly revenue was down .9% on a year-over-year basis. On average, analysts expect MGIC Investment to post $3 EPS for the current fiscal year and $3 EPS for the next fiscal year.
MGIC Investment Stock Performance Shares of MTG stock opened at $28.66 on Monday. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.52 and a current ratio of 1.52. MGIC Investment has a one year low of $24.14 and a one year high of $29.97. The company’s 50-day simple moving average is $26.71 and its 200-day simple moving average is $27.45. The stock has a market capitalization of $6.16 billion, a price-to-earnings ratio of 9.13, a PEG ratio of 2.28 and a beta of 0.79.
MGIC Investment declared that its Board of Directors has approved a stock repurchase program on Thursday, April 23rd that authorizes the company to buyback $750.00 million in outstanding shares. This buyback authorization authorizes the insurance provider to reacquire up to 12.4% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board believes its stock is undervalued.
MGIC Investment Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, May 21st. Stockholders of record on Wednesday, May 6th will be given a dividend of $0.15 per share. The ex-dividend date of this dividend is Wednesday, May 6th. This represents a $0.60 annualized dividend and a dividend yield of 2.1%. MGIC Investment’s dividend payout ratio (DPR) is presently 19.11%.
Wall Street Analysts Forecast Growth A number of brokerages have issued reports on MTG. Barclays raised their target price on shares of MGIC Investment from $28.00 to $29.00 and gave the stock an “equal weight” rating in a report on Monday, April 6th. UBS Group decreased their target price on MGIC Investment from $29.50 to $28.00 and set a “neutral” rating for the company in a research note on Thursday, March 12th. Weiss Ratings downgraded MGIC Investment from a “buy (a-)” rating to a “buy (b+)” rating in a research note on Thursday, February 5th. Finally, Keefe, Bruyette & Woods lifted their target price on MGIC Investment from $28.00 to $29.00 and gave the company a “market perform” rating in a research note on Friday, April 10th. One investment analyst has rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, MGIC Investment has a consensus rating of “Hold” and an average target price of $28.50.
Check Out Our Latest Research Report on MGIC Investment
Insider Buying and Selling at MGIC Investment In other MGIC Investment news, COO Salvatore A. Miosi sold 30,000 shares of MGIC Investment stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $27.27, for a total value of $818,100.00. Following the completion of the transaction, the chief operating officer directly owned 454,245 shares in the company, valued at $12,387,261.15. The trade was a 6.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Paula C. Maggio sold 20,000 shares of MGIC Investment stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $27.51, for a total value of $550,200.00. Following the completion of the transaction, the executive vice president owned 114,689 shares of the company’s stock, valued at approximately $3,155,094.39. The trade was a 14.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 200,133 shares of company stock worth $5,342,700 over the last ninety days. Company insiders own 1.34% of the company’s stock.
Institutional Investors Weigh In On MGIC Investment Hedge funds have recently made changes to their positions in the business. Newbridge Financial Services Group Inc. bought a new stake in shares of MGIC Investment during the third quarter valued at approximately $28,000. Geneos Wealth Management Inc. raised its holdings in shares of MGIC Investment by 88.0% during the first quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider’s stock valued at $43,000 after buying an additional 817 shares during the last quarter. Kestra Advisory Services LLC bought a new stake in shares of MGIC Investment during the fourth quarter valued at approximately $79,000. Danske Bank A S bought a new stake in shares of MGIC Investment during the third quarter valued at approximately $82,000. Finally, iSAM Funds UK Ltd bought a new stake in shares of MGIC Investment during the third quarter valued at approximately $122,000. Institutional investors own 95.58% of the company’s stock.
About MGIC Investment (Get Free Report)
MGIC Investment Corporation (NYSE: MTG) is a leading provider of private mortgage insurance in the United States. Established in 1957 as the nation’s first private mortgage insurer, MGIC helps lenders manage credit risk and facilitates homeownership by protecting mortgage loans against default. Headquartered in Milwaukee, Wisconsin, the company operates through its principal subsidiary, Mortgage Guaranty Insurance Corporation, and maintains relationships with a broad network of originators and servicers nationwide.
The company’s primary business activity involves issuing mortgage insurance policies that enable borrowers to purchase homes with down payments below traditional lending thresholds.
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First Quarter 2026 Net Income of $165.3 million or $0.76 per Diluted Share
First Quarter 2026 Adjusted Net Operating Income (Non-GAAP) of $165.1 million or $0.76 per Diluted Share
, /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) today reported operating and financial results for the first quarter of 2026.
Tim Mattke, CEO of MTG and Mortgage Guaranty Insurance Corporation ("MGIC") said, "We had a strong start to the year, successfully executing on our business strategies and generating solid first quarter results. We achieved a return on equity of 13% while continuing to return meaningful capital to our shareholders.
"We are well-positioned to navigate dynamic environments, supported by our deep industry expertise, strong balance sheet, and disciplined approach to capital allocation. Our continued focus and commitment to meet our customers' evolving needs has allowed us to drive long-term shareholder value," concluded Mattke.
SUMMARY FINANCIAL METRICS
Quarter ended
($ in millions, except where otherwise noted)
Q1 2026
Q4 2025
Q1 2025
Net income
$ 165.3
$ 169.3
$ 185.5
Net income per diluted share
$ 0.76
$ 0.75
$ 0.75
Adjusted net operating income
$ 165.1
$ 168.4
$ 185.2
Adjusted net operating income per diluted share
$ 0.76
$ 0.75
$ 0.75
New insurance written (NIW) (billions)
$ 14.4
$ 17.1
$ 10.2
Net premiums earned
$ 235.4
$ 236.0
$ 243.7
Insurance in force (billions)
$ 302.7
$ 303.1
$ 293.8
Annual persistency
84.0 %
84.8 %
84.7 %
Losses incurred, net
$ 33.2
$ 31.2
$ 9.6
Primary delinquency inventory
27,006
27,072
25,438
Primary IIF delinquency rate (count based)
2.44 %
2.43 %
2.30 %
Loss ratio
14.1 %
13.2 %
3.9 %
Underwriting expense ratio
20.5 %
19.9 %
22.5 %
In force portfolio yield (bps)
38.0
38.0
38.4
Net premium yield (bps)
31.1
31.2
33.0
Annualized return on equity
13.0 %
13.1 %
14.3 %
Book value per common share outstanding
$ 23.63
$ 23.47
$ 21.40
Adjust for AOCI
$ 0.79
$ 0.61
$ 0.98
Tangible book value per share
$ 24.41
$ 24.08
$ 22.38
CAPITAL AND LIQUIDITY
As of
($ in billions, except where otherwise noted)
March 31, 2026
December 31, 2025
March 31, 2025
PMIERs available assets
$ 5.8
$ 5.7
$ 5.9
PMIERs excess
$ 2.9
$ 2.5
$ 2.6
Holding company liquidity (millions)
$ 709
$ 1,074
$ 824
FIRST QUARTER 2026 HIGHLIGHTS
Through an insurance linked note transaction, we executed a $324 million excess of loss reinsurance agreement that covers certain policies written between January 1, 2022 and March 31, 2025. We repurchased 7.2 million shares of common stock for $192.6 million. We paid a dividend of $0.15 per common share to shareholders. SECOND QUARTER 2026 HIGHLIGHTS
Through April 24, 2026 we repurchased an additional 1.7 million shares of our common stock for $47.4 million. We declared a dividend of $0.15 per common share to shareholders payable on May 21, 2026, to shareholders of record at the close of business on May 6, 2026. MGIC paid a $400 million dividend to our holding company. Our board of directors approved a share repurchase program, authorizing us to purchase an additional $750 million of common stock prior to December 31, 2028. Conference Call and Webcast Details
MGIC Investment Corporation will hold a conference call April 30, 2026, at 10:00 a.m. ET to allow securities analysts and shareholders the opportunity to hear management discuss the company's quarterly results. Individuals interested in joining by telephone should register for the call at https://register-conf.media-server.com/register/BIeb1b95ef583c49419a8d6b744e509dce to receive the dial-in number and unique PIN to access the call. It is recommended that you join the call at least 10 minutes before the conference call begins. The call is also being webcast and can be accessed at the company's website at http://mtg.mgic.com/ under "Newsroom." A replay of the webcast will be available on the company's website through May 30, 2026.
About MGIC
Mortgage Guaranty Insurance Corporation (MGIC) (www.mgic.com), the principal subsidiary of MGIC Investment Corporation, provides mortgage insurance solutions that support responsible credit risk management for mortgage lenders and investors and enable borrowers to qualify for mortgages with lower down payments. As the founder and longstanding leader of today's private mortgage insurance industry, MGIC continues to guide the industry's evolution while serving as a trusted partner to lenders across the country.
This press release, which includes certain additional statistical and other information, including non-GAAP financial information and a supplement that contains various portfolio statistics, are all available on the Company's website at https://mtg.mgic.com/ under "Newsroom."
From time to time MGIC Investment Corporation releases important information via postings on its corporate website, and via postings on MGIC's website for information related to underwriting and pricing, and intends to continue to do so in the future. Such postings include corrections of previous disclosures and may be made without any other disclosure. Investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information for MGIC Investment Corporation alerts can be found at https://mtg.mgic.com/shareholder-services/email-alerts. For information about our underwriting and rates, see https://www.mgic.com/underwriting.
Use of Non-GAAP financial measures
We believe that use of the Non-GAAP financial measures of adjusted pre-tax operating income (loss), adjusted net operating income (loss) and adjusted net operating income (loss) per diluted share facilitate the evaluation of the company's core financial performance thereby providing relevant information to investors. These measures are not recognized in accordance with accounting principles generally accepted in the United States of America (GAAP) and should not be viewed as alternatives to GAAP measures of performance.
Adjusted pre-tax operating income (loss) is defined as GAAP income (loss) before tax, excluding the effects of net realized investment gains (losses), gain and losses on debt extinguishment and infrequent or unusual non-operating items where applicable.
Adjusted net operating income (loss) is defined as GAAP net income (loss) excluding the after-tax effects of net realized investment gains (losses), gain and losses on debt extinguishment and infrequent or unusual non-operating items where applicable. The amounts of adjustments to components of pre-tax operating income (loss) are tax effected using a federal statutory tax rate of 21%.
Adjusted net operating income (loss) per diluted share is calculated in a manner consistent with the accounting standard regarding earnings per share by dividing (i) adjusted net operating income (loss) by (ii) diluted weighted average common shares outstanding, which reflects share dilution from unvested restricted stock units.
Although adjusted pre-tax operating income (loss) and adjusted net operating income (loss) exclude certain items that have occurred in the past and are expected to occur in the future, the excluded items represent items that are: (1) not viewed as part of the operating performance of our primary activities; or (2) impacted by both discretionary and other economic or regulatory factors and are not necessarily indicative of operating trends, or both. These adjustments, along with the reasons for their treatment, are described below. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these adjustments. Other companies may calculate these measures differently. Therefore, their measures may not be comparable to those used by us.
(1)
Net realized investment gains (losses). The recognition of net realized investment gains or losses can vary significantly across periods as the timing of individual securities sales is highly discretionary and is influenced by such factors as market opportunities, our tax and capital profile, and overall market cycles.
(2)
Gains and losses on debt extinguishment. Gains and losses on debt extinguishment result from discretionary activities that are undertaken to enhance our capital position, and/or improve our debt profile.
(3)
Infrequent or unusual non-operating items. Items that are non-recurring in nature and are not part of our primary operating activities.
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended March 31,
(In thousands, except per share data)
2026
2025
Net premiums written
$ 234,943
$ 235,346
Revenues
Net premiums earned
$ 235,363
$ 243,719
Net investment income
61,742
61,443
Net gains (losses) on investments and other financial instruments
(169)
741
Other revenue
141
331
Total revenues
297,077
306,234
Losses and expenses
Losses incurred, net
33,242
9,591
Underwriting and other expenses, net
48,108
53,063
Interest expense
8,899
8,899
Total losses and expenses
90,249
71,553
Income before tax
206,828
234,681
Provision for income taxes
41,525
49,221
Net income
$ 165,303
$ 185,460
Net income per diluted share
$ 0.76
$ 0.75
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
EARNINGS PER SHARE (UNAUDITED)
Three Months Ended March 31,
(In thousands, except per share data)
2026
2025
Net income - basic and diluted
$ 165,303
$ 185,460
Basic weighted average common shares outstanding
216,135
244,147
Dilutive effect of unvested restricted stock units
2,051
2,343
Diluted weighted average common shares outstanding
218,186
246,490
Diluted earnings per share
$ 0.76
$ 0.75
NON-GAAP RECONCILIATIONS
Reconciliation of Income before tax / Net income to Adjusted pre-tax operating income / Adjusted net operating income
Three Months Ended March 31,
2026
2025
(In thousands, except per share amounts)
Pre-tax
Tax Effect
Net
(after-tax)
Pre-tax
Tax Effect
Net
(after-tax)
Income before tax / Net income
$ 206,828
$ 41,525
$ 165,303
$ 234,681
$ 49,221
$ 185,460
Adjustments:
Net realized investment (gains) losses
(200)
(42)
(158)
(319)
(67)
(252)
Adjusted pre-tax operating income / Adjusted
net operating income
$ 206,628
$ 41,483
$ 165,145
$ 234,362
$ 49,154
$ 185,208
Reconciliation of Net income per diluted share to Adjusted net operating income per diluted share
Weighted average shares - diluted
218,186
246,490
Net income per diluted share
$ 0.76
$ 0.75
Net realized investment (gains) losses
0.00
0.00
Adjusted net operating income per diluted share
$ 0.76
$ 0.75
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
March 31,
December 31,
March 31,
(In thousands, except per share data)
2026
2025
2025
ASSETS
Investments (1)
$ 5,719,421
$ 5,807,662
$ 5,901,057
Cash and cash equivalents
235,090
368,989
206,988
Restricted cash and cash equivalents
14,405
6,525
5,705
Reinsurance recoverable on loss reserves (2)
73,184
65,055
51,864
Home office and equipment, net
31,947
32,454
34,468
Deferred insurance policy acquisition costs
7,955
8,377
11,114
Deferred income taxes, net
15,494
18,512
46,196
Other assets
319,253
331,912
277,744
Total assets
$ 6,416,749
$ 6,639,486
$ 6,535,136
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Loss reserves (2)
$ 499,120
$ 474,884
$ 465,033
Unearned premiums
92,606
93,026
111,987
Senior notes
646,506
646,138
645,035
Other liabilities
141,230
277,887
173,197
Total liabilities
1,379,462
1,491,935
1,395,252
Shareholders' equity
5,037,287
5,147,551
5,139,884
Total liabilities and shareholders' equity
$ 6,416,749
$ 6,639,486
$ 6,535,136
Book value per share (3)
$ 23.63
$ 23.47
$ 21.40
(1) Investments include net unrealized gains (losses) on securities
$ (194,840)
$ (152,767)
$ (261,022)
(2) Loss reserves, net of reinsurance recoverable on loss reserves
$ 425,936
$ 409,829
$ 413,169
(3) Shares outstanding
213,200
219,367
240,194
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
ADDITIONAL INFORMATION - NEW INSURANCE WRITTEN
2026
2025
Q1
Q4
Q3
Q2
Q1
New primary insurance written (NIW) (billions)
$ 14.4
$ 17.1
$ 16.5
$ 16.4
$ 10.2
Monthly (including split premium plans) and
annual premium plans
13.9
16.6
16.1
16.0
9.9
Single premium plans
0.5
0.5
0.4
0.4
0.3
Product mix as a % of primary NIW
Credit score < 680
5 %
5 %
4 %
4 %
4 %
>95% LTVs
14 %
15 %
17 %
13 %
13 %
>45% DTI
25 %
26 %
27 %
26 %
31 %
Singles
4 %
3 %
2 %
2 %
2 %
Refinances
21 %
17 %
6 %
6 %
6 %
New primary risk written (billions)
$ 3.8
$ 4.4
$ 4.4
$ 4.3
$ 2.6
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
ADDITIONAL INFORMATION - INSURANCE IN FORCE and RISK IN FORCE
2026
2025
Q1
Q4
Q3
Q2
Q1
Primary Insurance In Force (IIF) (billions)
$ 302.7
$ 303.1
$ 300.8
$ 297.0
$ 293.8
Total # of loans
1,106,958
1,112,727
1,111,855
1,107,526
1,105,863
Premium Yield
In force portfolio yield (1)
38.0
38.0
38.3
38.3
38.4
Premium refunds (2)
(0.3)
(0.4)
(0.3)
(0.1)
0.0
Accelerated earnings on single premium
0.2
0.3
0.2
0.2
0.2
Total direct premium yield
37.9
37.9
38.2
38.4
38.6
Ceded premiums earned, net of profit
commission and assumed premiums (3)
(6.8)
(6.7)
(5.9)
(5.4)
(5.6)
Net premium yield
31.1
31.2
32.3
33.0
33.0
Average Loan Size of IIF (thousands)
$ 273.4
$ 272.4
$ 270.6
$ 268.2
$ 265.7
Annual Persistency
84.0 %
84.8 %
85.0 %
84.7 %
84.7 %
Primary Risk In Force (RIF) (billions)
$ 81.2
$ 81.2
$ 80.6
$ 79.5
$ 78.5
By credit score (%) (4)
760 & >
45 %
45 %
45 %
44 %
44 %
740-759
18 %
18 %
18 %
18 %
18 %
720-739
14 %
14 %
14 %
14 %
14 %
700-719
10 %
10 %
10 %
10 %
10 %
680-699
7 %
7 %
7 %
7 %
7 %
660-679
3 %
3 %
3 %
3 %
3 %
640-659
2 %
2 %
2 %
2 %
2 %
639 & <
1 %
1 %
1 %
2 %
2 %
Average Coverage Ratio (RIF/IIF)
26.8 %
26.8 %
26.8 %
26.8 %
26.7 %
(1)
Total direct premiums earned, excluding premium refunds and accelerated premiums from single premium policy cancellations divided by average primary insurance in force.
(2)
Premium refunds and our estimate of refundable premium on our delinquency inventory divided by average primary insurance in force.
(3)
Ceded premiums earned, net of profit commissions and assumed premiums. Assumed premiums include our participation in GSE Credit Risk Transfer programs, of which the impact on the net premium yield was 0.5 bps in the first quarter of 2026.
(4)
The credit score at the time of origination for a loan with multiple borrowers is the lowest of the borrowers' "decision credit scores." A borrower's "decision credit score" is determined as follows: if there are three credit scores available, the middle credit score is used; if two credit scores are available, the lower of the two is used; if only one credit score is available, it is used.
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
ADDITIONAL INFORMATION - DELINQUENCY STATISTICS
2026
2025
Q1
Q4
Q3
Q2
Q1
Primary IIF - Delinquent Roll Forward - # of
Loans
Beginning Delinquent Inventory
27,072
25,747
24,444
25,438
26,791
New Notices
13,791
14,489
13,582
11,970
12,965
Cures
(13,393)
(12,632)
(11,814)
(12,588)
(13,981)
Paid claims
(457)
(359)
(359)
(341)
(312)
Rescissions and denials
(7)
(13)
(18)
(35)
(25)
Other items removed from inventory (1)
—
(160)
(88)
—
—
Ending Delinquent Inventory
27,006
27,072
25,747
24,444
25,438
Primary IIF Delinquency Rate (count based)
2.44 %
2.43 %
2.32 %
2.21 %
2.30 %
Primary claim received inventory included in
ending delinquent inventory
383
398
333
295
304
Composition of Cures
Reported delinquent and cured
intraquarter
3,973
3,917
3,606
3,268
4,321
Number of payments delinquent prior to
cure
3 payments or less
6,262
5,734
5,141
5,708
6,379
4-11 payments
2,702
2,466
2,500
2,887
2,759
12 payments or more
456
515
567
725
522
Total Cures in Quarter
13,393
12,632
11,814
12,588
13,981
Composition of Paids
Number of payments delinquent at time
of claim payment
3 payments or less
1
—
1
—
1
4-11 payments
57
32
32
32
28
12 payments or more
399
327
326
309
283
Total Paids in Quarter
457
359
359
341
312
Aging of Primary Delinquent Inventory
Consecutive months delinquent
3 months or less
9,655
36 %
10,389
38 %
9,817
38 %
8,552
35 %
8,497
33 %
4-11 months
10,289
38 %
9,559
35 %
8,858
34 %
8,868
36 %
9,907
39 %
12 months or more
7,062
26 %
7,124
27 %
7,072
28 %
7,024
29 %
7,034
28 %
Number of payments delinquent
3 payments or less
13,376
49 %
14,121
52 %
13,406
52 %
12,260
50 %
12,319
48 %
4-11 payments
9,364
35 %
8,747
32 %
8,122
32 %
7,963
33 %
8,788
35 %
12 payments or more
4,266
16 %
4,204
16 %
4,219
16 %
4,221
17 %
4,331
17 %
(1)
Items removed from inventory are associated with commutations of coverage on non-performing policies.
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
ADDITIONAL INFORMATION - RESERVES and CLAIMS PAID
2026
2025
Q1
Q4
Q3
Q2
Q1
Reserves (millions)
Primary Direct Loss Reserves
$ 497
$ 472
$ 450
$ 450
$ 462
Other Gross Loss Reserves
2
3
2
2
3
Total Gross Loss Reserves
$ 499
$ 475
$ 452
$ 452
$ 465
Primary Average Direct Reserve
Per Delinquency
$ 18,398
$ 17,449
$ 17,462
$ 18,395
$ 18,167
Net Paid Claims (millions) (1)
$ 17
$ 16
$ 14
$ 12
$ 12
Total primary (excluding settlements)
20
16
14
13
12
Rescission and NPL settlements
—
3
1
—
—
Reinsurance
(4)
(3)
(2)
(2)
(2)
LAE and other
1
1
1
1
2
Reinsurance Terminations (1)
—
(1)
—
—
—
Primary Average Claim Payment
(thousands) (2)
$ 42.7
$ 46.1
$ 39.7
$ 36.5
$ 38.8
(1)
Net paid claims, as presented, does not include amounts received in conjunction with terminations or commutations of reinsurance agreements.
(2)
Excludes amounts paid in settlement disputes for claims paying practices and/or commutations of policies.
MGIC INVESTMENT CORPORATION AND SUBSIDIARIES
ADDITIONAL INFORMATION - REINSURANCE AND MI RATIOS
2026
2025
Q1
Q4
Q3
Q2
Q1
Quota Share Reinsurance
% NIW subject to reinsurance
86.4 %
86.2 %
88.2 %
87.7 %
86.8 %
Ceded premiums written and earned (millions)
$ 37.8
$ 38.9
$ 32.0
$ 28.1
$ 29.9
Ceded losses incurred (millions)
$ 12.0
$ 11.9
$ 6.1
$ 4.0
$ 6.4
Ceding commissions (millions) (included in
underwriting and other expenses)
$ 13.4
$ 13.4
$ 12.9
$ 12.1
$ 11.7
Profit commission (millions) (included in ceded
premiums)
$ 29.1
$ 28.3
$ 32.6
$ 32.3
$ 28.7
Excess-of-Loss Reinsurance
Ceded premiums earned (millions)
$ 17.8
$ 14.8
$ 16.2
$ 15.4
$ 14.7
GAAP loss ratio
14.1 %
13.2 %
4.5 %
(1.2 %)
3.9 %
GAAP underwriting expense ratio
20.5 %
19.9 %
21.1 %
21.9 %
22.5 %
Mortgage Guaranty Insurance Corporation - Risk to
Capital
9.6:1
10.0:1
9.7:1
10.0:1
9.8:1
Combined Insurance Companies - Risk to Capital
9.6:1
10.0:1
9.7:1
10.0:1
9.7:1
Safe Harbor Statement
Forward Looking Statements and Risk Factors:
This release contains forward looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on current assumptions, expectations, and projections and are subject to risks and uncertainties that could cause actual results to differ materially. Forward-looking statements consist of statements which relate to matters other than historical fact, including matters that inherently refer to future events. Among others, statements that include words such as "believe," "anticipate," "will" or "expect," or words of similar import, are forward-looking statements. Our actual results may differ, possibly materially, from those expressed or implied in such forward-looking statements. Factors and uncertainties that could cause actual results to differ can be found in the "Risk Factors" and "Forward-Looking Statements" sections included in MGIC Investment Corporation's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Such factors and uncertainties include, without limitation:
Our results are dependent on U.S. economic and housing market conditions; adverse conditions may cause a decrease in new insurance written and/or an increase in delinquencies, claim frequency, and claim severity. Additionally, if the volume of low down payment home mortgage originations declines, the amount of new insurance that we write could decline. The substantial majority of MGIC's new insurance written is for loans purchased by Fannie Mae and Freddie Mac ("the GSEs"); therefore, changes to their business practices or legislative, regulatory or administrative reforms could materially affect our business and financial results. Failure to comply with the GSEs' Private Mortgage Insurance Eligibility Requirements ("PMIERs") could limit our operations, or at the extreme, lead to suspension or termination of eligibility to insure loans purchased by the GSEs. Loss reserve estimates are subject to uncertainties; actual losses may differ materially from estimates. Additionally, because reserves are established only upon delinquency, losses may disproportionately impact earnings in certain periods. We operate in a highly regulated environment at both the federal and state levels; regulatory changes or enforcement actions may adversely affect our operations and/or financial results. If we fail to meet the State Capital Requirements of Wisconsin, we could be prevented from writing new business in all jurisdictions; we could be prevented from writing new business in a particular jurisdiction if we fail to meet the state capital requirements of that jurisdiction. Pandemics, severe weather events, and climate related developments may negatively affect home prices and affordability, potentially leading to an increase in delinquencies, claim frequency, and claim severity. Actions by government authorities, including FHFA and the GSEs, to address climate related issues could similarly affect our results. The availability, cost, and capital credit for reinsurance may change due to market conditions or GSE actions, potentially requiring us to retain more risk and maintain additional capital. Our financial results may be impacted if lenders and investors seek alternatives to private mortgage insurance. In addition, changes in GSE programs, growth in government market share, or changes to regulatory capital rules to limit capital relief for mortgage insurance could affect our business in similar ways. The premium rates we charge may prove inadequate due to unknown future economic conditions, modelling limitations or errors, or other unexpected events. The length of time our insurance policies remain in force ("persistency") affects our results. Among other things, persistency can be influenced by interest rates, borrower equity, refinancing activity, and mortgage insurance cancellation requirements. Instability in financial markets or counterparty failures, including by reinsurers or mortgage servicers, could increase our credit risk and losses. Ineffective risk management programs, inaccurate data or model errors could impair our ability to identify and respond to risks, and materially adversely affect our business, results of operations, and financial condition. Technology system failures, cybersecurity breaches, or data privacy incidents could materially disrupt operations and cause financial and reputational damage. Changes in our underwriting practices and mix of business have the potential to increase risk and negatively affect our financial results. Our business depends on hiring and retaining experienced management and key personnel; the failure to do so could disrupt operations and negatively impact our financial condition. The mortgage insurance market is highly competitive. Competition from private mortgage insurers, government programs, and potential new market entrants —combined with pricing pressure and shifting customer preferences and relationships—could lead to a reduction in our new insurance written. Adverse rating agency actions could affect our competitiveness, GSE eligibility, and access to capital. Litigation and regulatory proceedings could result in fines, settlements, operational restrictions, or reputational harm. Our investment portfolio is exposed to risks that could adversely impact our operations and financial results. Future capital needs could require issuance of debt or equity, potentially diluting shareholders. Our stock price may fluctuate due to economic, industry, regulatory, or company specific developments. Regulatory limits on dividends from our insurance subsidiaries have the potential to constrain holding company liquidity and our ability to pay shareholder dividends or repurchase stock in the future. We are not undertaking any obligation to update any forward-looking statements or other statements we may make even though these statements may be affected by events or circumstances occurring after the forward looking statements or other statements were made. No investor should rely on the fact that such statements are current at any time other than the time at which this press release was delivered for dissemination to the public.
While we communicate with security analysts from time to time, it is against our policy to disclose to them any material non-public information or other confidential information. Accordingly, investors should not assume that we agree with any statement or report issued by any analyst irrespective of the content of the statement or report, and such reports are not our responsibility.
MGIC Investment (MTG - Free Report) came out with quarterly earnings of $0.76 per share, beating the Zacks Consensus Estimate of $0.73 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +3.64%. A quarter ago, it was expected that this mortgage insurance company would post earnings of $0.73 per share when it actually produced earnings of $0.75, delivering a surprise of +2.74%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
MGIC, which belongs to the Zacks Insurance - Multi line industry, posted revenues of $297.25 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 1.41%. This compares to year-ago revenues of $305.49 million. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
MGIC shares have lost about 0.8% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for MGIC?While MGIC has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for MGIC was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.76 on $304.88 million in revenues for the coming quarter and $3.08 on $1.22 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Multi line is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Radian (RDN - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.
This mortgage insurer is expected to post quarterly earnings of $1.22 per share in its upcoming report, which represents a year-over-year change of +23.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Radian's revenues are expected to be $302.3 million, down 1.3% from the year-ago quarter.
MGIC Investment (MTG - Free Report) reported $297.25 million in revenue for the quarter ended March 2026, representing a year-over-year decline of 2.7%. EPS of $0.76 for the same period compares to $0.75 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $301.51 million, representing a surprise of -1.41%. The company delivered an EPS surprise of +3.64%, with the consensus EPS estimate being $0.73.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how MGIC performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
GAAP loss ratio (insurance operations only): 14.1% versus the two-analyst average estimate of 17.7%.Combined Ratio - Insurance Segment (Net of underwriting expense ratio and Loss ratio): 34.6% versus 38.6% estimated by two analysts on average.GAAP underwriting expense ratio (insurance operations only): 20.5% compared to the 20.9% average estimate based on two analysts.Revenues- Net investment income: $61.74 million versus the two-analyst average estimate of $62.38 million. The reported number represents a year-over-year change of +0.5%.Revenues- Net premiums earned: $235.36 million versus $238.75 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -3.4% change.Revenues- Other revenue: $0.14 million versus the two-analyst average estimate of $0.39 million. The reported number represents a year-over-year change of -57.4%.View all Key Company Metrics for MGIC here>>>
Shares of MGIC have returned +10.4% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
