MGIC Investment Down over 22% after Quarterly Results this Morning; 52-Week Low

MGIC Investment Corp MTG swung to a loss in the second quarter. MGIC reported quarterly a loss of $151.7 million, or $0.75 per share, versus a profit of $24.6 million, or $0.13 per share, in the year-ago period. Its revenue dropped 9.7% to $367 million. Analysts were expecting earnings of $0.02 per share on revenue of $346 million. MGIC's losses from mortgage defaults surged to $459.5 million from $320.1 million. Read more here. Many traders and investors see the 52-week high or low as an important indicator. Stocks that have a long-term trend in a certain direction are likely to continue, as that trend is the path of least resistance. In this case, shares of MTG are hitting new 52-week lows. Traders and investors believe this to be a negative indicator that the stock will continue its trend.