PROMISES TO REPURCHASE COMPANY STOCK MANY TIMES GO UNFILLED
ESSENT GUARANTY promises to buy $250 million in stock by the end of 2022. However, manytimes those promises aren't kept due unforseen obstacles. In the case of MGIC COVID-19.
ESSENT GUARANTY promises it will BUYBACK $250 million in company shares to makeup for a bad two quarters, when it missed estimates and under performed.
In Q1 2021, ESSENT GUARANTY lost marketshare, decreased insurance in force, came in last in new insurance written. So, does making a promise to REPURCHASE COMPANY STOCK makeup for a poor performance?
MGIC SEC 10-K 2020
"Share repurchase programs
In the first quarter of 2020 and in the full year of 2019, we repurchased
approximately 9.6 million and 8.7 million shares of our common stock,
respectively, using approximately $120 million and $114 million,
respectively, of holding company resources. As of December 31, 2020, we
had $291 million of authorization remaining to repurchase our common
stock through the end of 2021 under a share repurchase program approved
by our Board of Directors in January 2020. Repurchases may be made
from time to time on the open market (including through 10b5-1 plans) or
through privately negotiated transactions. The repurchase programs may
be suspended for periods or discontinued at any time. Due to the
uncertainty caused by the COVID-19 pandemic, we have temporarily
suspended stock repurchases, but may resume them in the future.
The following table shows details of our share repurchase programs.
Repurchase
Program Expiration Date
Repurchased (in
millions)
Authorization
Remaining
(in millions)
2018 Authorization December 31, 2019 $ 200 $ —
2019 Authorization December 31, 2020 $ 200 $ —
2020 Authorization December 31, 2021 $ 9 $ 291
As of December 31, 2020, we had approximately 339 million shares of
common stock outstanding."
