NMI Holdings Inc (NASDAQ:NMIH) Stock Now Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• NMI Holdings received a “Moderate Buy” consensus rating from seven analysts, with five buys and two holds. The average 12-month price target is $48.43, implying upside from the reported $39.56 share price.
• NMI reported stronger-than-expected quarterly results, posting $1.38 in EPS versus the $1.28 estimate and $187.89 million in revenue versus the $156.26 million consensus. Revenue increased 8.1% year over year.
• Institutional investors own a substantial 94.12% of NMI’s shares, while insiders have sold 196,368 shares worth approximately $8.8 million over the past 90 days.

NMI Holdings Inc (NASDAQ:NMIH - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the seven ratings firms that are covering the firm, Marketbeat Ratings reports. Two research analysts have rated the stock with a hold recommendation and five have assigned a buy recommendation to the company. The average 1 year target price among brokers that have covered the stock in the last year is $48.43.

Several equities research analysts have recently commented on NMIH shares. Royal Bank Of Canada restated an "outperform" rating and set a $53.00 price objective on shares of NMI in a report on Tuesday, August 4th. Keefe, Bruyette & Woods reaffirmed a "market perform" rating and set a $47.00 target price on shares of NMI in a research report on Monday, August 3rd. Truist Financial increased their target price on NMI from $49.00 to $51.00 and gave the stock a "buy" rating in a report on Friday, July 31st. JPMorgan Chase & Co. cut their target price on NMI from $50.00 to $45.00 and set an "overweight" rating on the stock in a report on Monday. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of NMI in a research report on Wednesday, September 9th.

Insiders Place Their Bets

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

Institutional Investors Weigh In On NMI

Institutional investors and hedge funds have recently made changes to their positions in the business. Dimensional Fund Advisors LP raised its holdings in shares of NMI by 0.8% in the first quarter. Dimensional Fund Advisors LP now owns 4,351,808 shares of the financial services provider's stock valued at $163,237,000 after purchasing an additional 34,372 shares during the last quarter. Bank of America Corp DE lifted its position in shares of NMI by 22.7% during the first quarter. Bank of America Corp DE now owns 1,304,633 shares of the financial services provider's stock valued at $48,937,000 after purchasing an additional 241,724 shares in the last quarter. Donald Smith & CO. Inc. purchased a new position in NMI during the second quarter worth about $36,262,000. Panagora Asset Management Inc. boosted its holdings in NMI by 4.5% during the fourth quarter. Panagora Asset Management Inc. now owns 596,249 shares of the financial services provider's stock worth $24,321,000 after purchasing an additional 25,639 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in NMI during the second quarter worth about $20,919,000. Institutional investors and hedge funds own 94.12% of the company's stock.

NMI Stock Performance

Shares of NMI stock opened at $39.56 on Wednesday. NMI has a one year low of $34.84 and a one year high of $46.74. The firm has a market capitalization of $2.98 billion, a price-to-earnings ratio of 7.79, a PEG ratio of 1.06 and a beta of 0.56. The business has a 50-day simple moving average of $43.14 and a 200 day simple moving average of $40.66. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.65 and a quick ratio of 0.65.

NMI (NASDAQ:NMIH - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The financial services provider reported $1.38 earnings per share for the quarter, topping analysts' consensus estimates of $1.28 by $0.10. The business had revenue of $187.89 million for the quarter, compared to the consensus estimate of $156.26 million. NMI had a return on equity of 15.13% and a net margin of 54.10%. The firm's revenue for the quarter was up 8.1% on a year-over-year basis. During the same period in the prior year, the business earned $1.22 EPS. On average, research analysts anticipate that NMI will post 5.25 earnings per share for the current fiscal year.

About NMI

NMI Holdings, Inc NASDAQ: NMIH is a holding company whose principal operating subsidiary, National MI, provides private mortgage insurance in the United States. Mortgage insurance helps protect lenders and investors against losses when borrowers default on residential mortgage loans, enabling qualified borrowers to purchase homes with down payments below traditional requirements.

National MI primarily offers mortgage insurance for residential first-lien mortgages, including borrower-paid and lender-paid coverage.

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