NMI (NASDAQ:NMIH) Stock Rating Lowered by Bank of America

Key Points

• Bank of America downgraded NMI Holdings from “buy” to “neutral” and cut its price target from $51 to $44, implying only about 1.9% upside.
• NMI’s latest quarterly results exceeded expectations, with EPS of $1.38 versus a $1.28 estimate and revenue of $187.89 million, up 8.1% year over year.
• Analyst sentiment remains broadly positive, with five Buy ratings and three Holds, but insiders sold roughly $8.8 million of shares over the past 90 days while institutional investors own 94.12% of the stock.

NMI (NASDAQ:NMIH - Get Free Report) was downgraded by investment analysts at Bank of America from a "buy" rating to a "neutral" rating in a report issued on Friday, MarketBeat.com reports. They presently have a $44.00 target price on the financial services provider's stock, down from their prior target price of $51.00. Bank of America's price objective points to a potential upside of 1.90% from the stock's current price.

Other equities research analysts have also recently issued reports about the stock. JPMorgan Chase & Co. decreased their price objective on shares of NMI from $50.00 to $45.00 and set an "overweight" rating for the company in a research report on Monday, October 12th. Keefe, Bruyette & Woods downgraded NMI from an "outperform" rating to a "market perform" rating and set a $47.00 price objective on the stock. in a report on Monday, August 3rd. Royal Bank Of Canada reissued an "outperform" rating and set a $53.00 target price on shares of NMI in a research report on Tuesday, August 4th. Weiss Ratings upgraded NMI from a "buy (b)" rating to a "buy (b+)" rating in a research note on Monday, October 19th. Finally, Truist Financial upped their price target on NMI from $49.00 to $51.00 and gave the company a "buy" rating in a report on Friday, July 31st. Five equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $47.88.

NMI Stock Up 2.5%

Shares of NASDAQ:NMIH opened at $43.18 on Friday. The firm's 50 day moving average price is $42.32 and its 200 day moving average price is $40.22. The stock has a market cap of $3.25 billion, a price-to-earnings ratio of 8.50, a price-to-earnings-growth ratio of 1.38 and a beta of 0.56. NMI has a fifty-two week low of $34.84 and a fifty-two week high of $46.74. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.15.

NMI (NASDAQ:NMIH - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The financial services provider reported $1.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.28 by $0.10. NMI had a net margin of 54.10% and a return on equity of 15.13%. The company had revenue of $187.89 million during the quarter, compared to the consensus estimate of $156.26 million. During the same quarter in the previous year, the firm earned $1.22 earnings per share. The firm's quarterly revenue was up 8.1% on a year-over-year basis. As a group, equities research analysts predict that NMI will post 5.26 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, EVP Aurora Swithenbank sold 11,662 shares of NMI stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $44.51, for a total value of $519,075.62. Following the sale, the executive vice president owned 50,734 shares of the company's stock, valued at $2,258,170.34. The trade was a 18.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Robert Smith sold 12,000 shares of NMI stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $44.65, for a total value of $535,800.00. Following the completion of the sale, the executive vice president owned 96,381 shares in the company, valued at approximately $4,303,411.65. This trade represents a 11.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 196,368 shares of company stock worth $8,800,740 in the last 90 days. Company insiders own 2.44% of the company's stock.

Hedge Funds Weigh In On NMI

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Donald Smith & CO. Inc. purchased a new stake in shares of NMI during the 2nd quarter valued at $36,262,000. Bank of New York Mellon Corp acquired a new stake in shares of NMI during the 2nd quarter worth $20,919,000. Winmill & CO. Inc. purchased a new position in shares of NMI in the 2nd quarter worth $16,276,000. Bank of America Corp DE raised its position in shares of NMI by 22.7% in the 1st quarter. Bank of America Corp DE now owns 1,304,633 shares of the financial services provider's stock worth $48,937,000 after buying an additional 241,724 shares during the period. Finally, Amundi boosted its holdings in NMI by 1,364.3% in the first quarter. Amundi now owns 168,246 shares of the financial services provider's stock valued at $6,311,000 after acquiring an additional 156,756 shares during the last quarter. 94.12% of the stock is owned by institutional investors and hedge funds.

About NMI

NMI Holdings, Inc NASDAQ: NMIH is the parent company of National MI, a U.S.-based provider of private mortgage insurance. Through its insurance subsidiaries, the company helps lenders manage the risk associated with residential mortgage loans, particularly loans made to borrowers with down payments below traditional thresholds.

National MI primarily offers private mortgage insurance for residential purchase and refinance transactions. Its products are designed for mortgage lenders, banks, credit unions and other housing-finance institutions, helping them expand access to homeownership while transferring a portion of potential credit risk.

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