Zacks Research Has Pessimistic Outlook of NMI Q1 Earnings

Key Points

• Zacks Research lowered NMI’s Q1 2027 EPS estimate to $1.30 from $1.31, while the full-year consensus estimate stands at $5.25 per share.
• NMI recently reported stronger-than-expected results, with quarterly EPS of $1.38 versus the $1.28 consensus and revenue of $187.89 million. Revenue increased 8.1% year over year.
• Analyst sentiment remains favorable, with a “Moderate Buy” consensus rating and an average price target of $48.33, although insiders sold approximately $8.8 million of shares over the past three months.

NMI Holdings Inc (NASDAQ:NMIH - Free Report) - Zacks Research lowered their Q1 2027 EPS estimates for shares of NMI in a research note issued on Monday, September 14th. Zacks Research analyst Team now expects that the financial services provider will earn $1.30 per share for the quarter, down from their prior estimate of $1.31. The consensus estimate for NMI's current full-year earnings is $5.25 per share. Zacks Research also issued estimates for NMI's Q1 2028 earnings at $1.39 EPS and Q2 2028 earnings at $1.41 EPS.

NMIH has been the subject of several other reports. UBS Group set a $46.00 price objective on NMI in a research report on Friday, May 22nd. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $53.00 price objective on shares of NMI in a research note on Tuesday, August 4th. Weiss Ratings reiterated a "buy (b)" rating on shares of NMI in a report on Wednesday, September 9th. Keefe, Bruyette & Woods reissued a "market perform" rating and set a $47.00 target price on shares of NMI in a research note on Monday, August 3rd. Finally, JPMorgan Chase & Co. raised their target price on NMI from $48.00 to $50.00 and gave the company an "overweight" rating in a report on Friday, July 31st. Four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $48.33.

NMI Price Performance

Shares of NMIH stock opened at $43.52 on Wednesday. The firm's 50-day moving average is $43.92 and its two-hundred day moving average is $40.28. NMI has a 12 month low of $34.84 and a 12 month high of $46.74. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.65 and a quick ratio of 0.65. The company has a market capitalization of $3.27 billion, a PE ratio of 8.57, a price-to-earnings-growth ratio of 1.19 and a beta of 0.53.

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 (EPS) for the quarter, beating analysts' consensus estimates of $1.28 by $0.10. The business had revenue of $187.89 million during the quarter, compared to analyst estimates of $156.26 million. NMI had a return on equity of 15.13% and a net margin of 54.10%.The business's revenue was up 8.1% compared to the same quarter last year. During the same period in the prior year, the business earned $1.22 earnings per share.

Insider Activity at NMI

In other NMI news, EVP Aurora Swithenbank sold 11,662 shares of NMI stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $44.51, for a total transaction of $519,075.62. Following the transaction, 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 transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Adam Pollitzer sold 172,706 shares of the firm'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 transaction of $7,745,864.10. Following the transaction, the chief executive officer owned 270,267 shares in the company, valued at approximately $12,121,474.95. This trade represents a 38.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 196,368 shares of company stock valued at $8,800,740 in the last three months. 2.44% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NMI

Several institutional investors have recently bought and sold shares of the company. Nykredit A S acquired a new stake in shares of NMI in the 2nd quarter worth approximately $31,000. IFP Advisors Inc boosted its position in shares of NMI by 189.5% in the 4th quarter. IFP Advisors Inc now owns 796 shares of the financial services provider's stock worth $32,000 after buying an additional 521 shares in the last quarter. Public Employees Retirement System of Ohio acquired a new stake in shares of NMI in the second quarter valued at approximately $36,000. Pacer Advisors Inc. grew its holdings in NMI by 58.7% during the 1st quarter. Pacer Advisors Inc. now owns 1,006 shares of the financial services provider's stock valued at $38,000 after buying an additional 372 shares during the last quarter. Finally, Bessemer Group Inc. boosted its stake in shares of NMI by 34.0% during the first quarter. Bessemer Group Inc. now owns 1,071 shares of the financial services provider's stock valued at $40,000 after acquiring an additional 272 shares during the last quarter. 94.12% of the stock is owned by institutional investors and hedge funds.

Key NMI News

Here are the key news stories impacting NMI this week:

• Positive Sentiment: NMI Holdings’ strong insurance-in-force (IIF) and new insurance written (NIW) growth is expanding its mortgage-insurance portfolio. Zacks also cited improving underwriting, which could support future earnings and profitability. NMI Holdings’ Strong IIF Growth: Can It Drive Future Earnings?
• Positive Sentiment: Zacks Research raised several forward earnings forecasts, including FY2026 EPS to $5.24 from $5.23, FY2027 EPS to $5.44 from $5.43, and FY2028 EPS to $5.70 from $5.66. It also increased Q2 2027 and Q4 2027 estimates, suggesting modest confidence in longer-term earnings growth.
• Neutral Sentiment: The earnings revisions were mixed: Zacks lowered Q1 2027 EPS to $1.30 from $1.31, Q1 2028 EPS to $1.39 from $1.41, and Q2 2028 EPS to $1.41 from $1.45. These reductions partially offset the upward changes but remain close to previous forecasts.
• Negative Sentiment: NMI Holdings declined amid sector-wide selling, indicating that broader weakness in financial and mortgage-related stocks—not necessarily a company-specific development—was the primary immediate catalyst. NMI Holdings Drops Amid Sector-Wide Selling

About NMI

NMI Holdings, Inc NASDAQ: NMIH is the parent company of National MI, a provider of private mortgage insurance in the United States. Through its insurance subsidiaries, the company offers mortgage insurance to lenders and other mortgage market participants, helping protect against losses when borrowers default on residential home loans.

National MI's products support conventional residential mortgages, including borrower-paid and lender-paid mortgage insurance arrangements. Its coverage is generally used when a homebuyer makes a down payment of less than 20%, enabling lenders to extend mortgage credit while reducing their exposure to potential default-related losses.

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