NMI Holdings Inc (NMIH) - What Are Researchers Saying About This Stock?

Key Points

• Analyst sentiment is moderately positive: Five of eight covering brokerages rate NMI Holdings a buy, while three recommend holding; the average 12-month price target is $47.75.
• Quarterly earnings fell short of expectations: EPS was $1.23 versus the $1.30 consensus, though revenue of $187.55 million exceeded estimates. Higher claims and costs weighed on results, partly offset by portfolio growth and stronger investment income.
• NMI shares were reported down 11.8%, and some analysts lowered their price targets or ratings, including Bank of America’s downgrade to neutral and target cut to $44.

NMI Holdings Inc (NASDAQ:NMIH - Get Free Report) has earned an average recommendation of "Moderate Buy" from the eight brokerages that are presently covering the company, MarketBeat reports. Three investment analysts have rated the stock with a hold recommendation and five have issued a buy recommendation on the company. The average 12-month price target among analysts that have issued a report on the stock in the last year is $47.75.

A number of equities analysts have issued reports on the stock. Bank of America downgraded shares of NMI from a "buy" rating to a "neutral" rating and cut their price objective for the stock from $51.00 to $44.00 in a report on Friday, October 30th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $53.00 target price on shares of NMI in a report on Tuesday, August 4th. JPMorgan Chase & Co. lowered their target price on shares of NMI from $50.00 to $45.00 and set an "overweight" rating for the company in a report on Monday, October 12th. BTIG Research initiated coverage on shares of NMI in a research report on Tuesday, September 22nd. They set a "buy" rating and a $54.00 price target on the stock. Finally, Keefe, Bruyette & Woods cut shares of NMI from an "outperform" rating to a "market perform" rating and set a $47.00 price target on the stock. in a report on Monday, August 3rd.

NMI Stock Down 11.8%

Shares of NASDAQ:NMIH opened at $39.03 on Friday. The stock has a market cap of $2.94 billion, a price-to-earnings ratio of 7.67, a PEG ratio of 1.27 and a beta of 0.52. 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 has a 12-month low of $35.12 and a 12-month high of $46.74. The business's 50 day moving average is $42.02 and its 200 day moving average is $40.37.

NMI (NASDAQ:NMIH - Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The financial services provider reported $1.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.30 by ($0.07). The company had revenue of $187.55 million for the quarter, compared to the consensus estimate of $159.20 million. NMI had a return on equity of 14.87% and a net margin of 53.11%. During the same quarter last year, the company posted $1.21 EPS. On average, sell-side analysts forecast that NMI will post 5.26 earnings per share for the current fiscal year.

NMI News Summary

Here are the key news stories impacting NMI this week:

• Positive Sentiment: Portfolio growth and stronger investment income provided some support, helping offset pressure from claims and expenses. NMIH Q3 Earnings Miss Estimates on Higher Claims and Costs
• Neutral Sentiment: EPS was $1.23, slightly above the $1.21 reported a year earlier, though it fell short of analyst expectations. NMI Holdings Q3 Earnings and Revenues Lag Estimates
• Negative Sentiment: Quarterly earnings missed consensus as higher claims and costs weighed on results—an important concern for investors despite business growth. NMIH Q3 Earnings Miss Estimates on Higher Claims and Costs
• Negative Sentiment: Barclays cut its price target from $43 to $42 and maintained an “equal weight” rating, signaling limited conviction in near-term upside. Barclays stock recommendations

Insider Activity

In other news, CEO Adam Pollitzer sold 172,706 shares of the business's stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $44.85, for a total value of $7,745,864.10. Following the transaction, the chief executive officer owned 270,267 shares in the company, valued at $12,121,474.95. The trade was a 38.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Aurora Swithenbank sold 11,662 shares of the business's stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $44.51, for a total value of $519,075.62. Following the completion of the transaction, the executive vice president owned 50,734 shares in the company, valued at $2,258,170.34. The trade was a 18.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 2.44% of the company's stock.

Institutional Trading of NMI

Institutional investors and hedge funds have recently modified their holdings of the business. Dimensional Fund Advisors LP boosted its position in 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 worth $163,237,000 after purchasing an additional 34,372 shares during the last quarter. Bank of America Corp DE raised its stake in shares of NMI by 22.7% during 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 purchasing an additional 241,724 shares during the period. Donald Smith & CO. Inc. bought a new stake in shares of NMI during the 2nd quarter worth $36,262,000. Bank of New York Mellon Corp purchased a new position in shares of NMI in the 2nd quarter worth about $20,919,000. Finally, Winmill & CO. Inc. purchased a new position in shares of NMI in the 2nd quarter worth about $16,276,000. 94.12% of the stock is owned by hedge funds and other institutional investors.

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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