Clearbridge Investments LLC Has $31.59 Million Position in NMI Holdings Inc $NMIH

Key Points

• Clearbridge Investments trimmed its NMI Holdings stake by 3.7% in the fourth quarter, but still held 774,359 shares valued at about $31.6 million. Institutional ownership remains very high at 94.12%.
• NMI Holdings shares were up 1.5% in Wednesday trading, opening at $36.65. The stock also looks inexpensive on valuation metrics, with a P/E ratio of 7.46 and a market cap of $2.78 billion.
• The company beat quarterly expectations, reporting $1.28 EPS versus the $1.22 estimate and revenue of $183.48 million versus $153.99 million expected. Analysts currently rate the stock a Moderate Buy with an average price target of $44.80.

Clearbridge Investments LLC cut its position in NMI Holdings Inc (NASDAQ:NMIH - Free Report) by 3.7% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 774,359 shares of the financial services provider's stock after selling 29,582 shares during the quarter. Clearbridge Investments LLC owned 1.01% of NMI worth $31,586,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently made changes to their positions in NMIH. Bank of America Corp DE raised its position in shares of NMI by 95.3% in the 3rd quarter. Bank of America Corp DE now owns 1,014,557 shares of the financial services provider's stock valued at $38,898,000 after buying an additional 495,144 shares in the last quarter. BNP Paribas Financial Markets grew its holdings in NMI by 184.3% during the 2nd quarter. BNP Paribas Financial Markets now owns 427,397 shares of the financial services provider's stock worth $18,032,000 after acquiring an additional 277,065 shares during the last quarter. Ameriprise Financial Inc. grew its holdings in NMI by 85.7% during the 3rd quarter. Ameriprise Financial Inc. now owns 600,139 shares of the financial services provider's stock worth $23,009,000 after acquiring an additional 276,897 shares during the last quarter. Jane Street Group LLC grew its holdings in NMI by 1,312.9% during the 1st quarter. Jane Street Group LLC now owns 224,152 shares of the financial services provider's stock worth $8,081,000 after acquiring an additional 208,287 shares during the last quarter. Finally, Cubist Systematic Strategies LLC grew its holdings in NMI by 62.6% during the 2nd quarter. Cubist Systematic Strategies LLC now owns 424,127 shares of the financial services provider's stock worth $17,894,000 after acquiring an additional 163,364 shares during the last quarter. 94.12% of the stock is currently owned by institutional investors and hedge funds.

NMI Trading Up 1.5%

NASDAQ:NMIH opened at $36.65 on Wednesday. The firm's fifty day moving average is $38.14 and its 200-day moving average is $38.71. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.63 and a current ratio of 0.63. NMI Holdings Inc has a 52 week low of $34.84 and a 52 week high of $43.20. The firm has a market cap of $2.78 billion, a P/E ratio of 7.46, a P/E/G ratio of 1.25 and a beta of 0.55.

NMI (NASDAQ:NMIH - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The financial services provider reported $1.28 EPS for the quarter, beating analysts' consensus estimates of $1.22 by $0.06. NMI had a net margin of 53.82% and a return on equity of 15.18%. The company had revenue of $183.48 million for the quarter, compared to analyst estimates of $153.99 million. During the same period in the prior year, the firm posted $1.28 EPS. The company's quarterly revenue was up 5.9% on a year-over-year basis. Equities analysts expect that NMI Holdings Inc will post 5.12 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Michael Curry Montgomery sold 1,554 shares of the company's stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $37.90, for a total value of $58,896.60. Following the sale, the director directly owned 69,026 shares of the company's stock, valued at approximately $2,616,085.40. This represents a 2.20% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Chairman Bradley M. Shuster sold 18,953 shares of the company's stock in a transaction on Tuesday, March 24th. The shares were sold at an average price of $37.35, for a total transaction of $707,894.55. Following the completion of the sale, the chairman directly owned 415,411 shares in the company, valued at approximately $15,515,600.85. This represents a 4.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 58,479 shares of company stock worth $2,164,735. Insiders own 2.44% of the company's stock.

Analysts Set New Price Targets

NMIH has been the topic of a number of research reports. UBS Group set a $46.00 target price on shares of NMI in a report on Friday, May 22nd. Weiss Ratings lowered shares of NMI from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, May 28th. Keefe, Bruyette & Woods reduced their target price on shares of NMI from $50.00 to $46.00 and set an "outperform" rating on the stock in a report on Monday, May 4th. Royal Bank Of Canada initiated coverage on shares of NMI in a report on Friday, May 22nd. They set an "outperform" rating and a $46.00 target price on the stock. Finally, JPMorgan Chase & Co. reduced their target price on shares of NMI from $44.00 to $43.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th. Four investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $44.80.

NMI Company Profile

NMI Holdings, Inc NASDAQ: NMIH is a publicly traded mortgage insurance company that provides private mortgage insurance to lenders across the United States and Canada. Through its principal subsidiary, National Mortgage Insurance Corporation, NMI underwrites and issues policies that protect originators and investors against losses arising from borrower default on residential mortgage loans. By mitigating credit risk on higher‐loan‐to‐value mortgages, the company supports homebuyers' access to financing and contributes to overall market liquidity.

Beyond its core mortgage insurance products, NMI offers credit risk‐sharing and reinsurance solutions designed to help clients optimize capital utilization and manage portfolio exposure.

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