Donald Smith & CO. Inc. Has $15.31 Million Stock Holdings in NMI Holdings Inc $NMIH

Key Points

• Donald Smith & Co. reduced its NMI Holdings stake by 18.4% in the fourth quarter, selling 84,409 shares and leaving it with 375,207 shares valued at about $15.3 million.
• NMI reported stronger-than-expected quarterly results, posting $1.28 EPS versus the $1.22 consensus and revenue of $183.48 million, which topped estimates and rose 5.9% year over year.
• Analysts remain broadly constructive on NMI, with four Buy ratings and one Hold, and a consensus price target of $44.80; several firms recently reiterated or lowered targets in the $43-$46 range.

Donald Smith & CO. Inc. cut its position in NMI Holdings Inc (NASDAQ:NMIH - Free Report) by 18.4% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 375,207 shares of the financial services provider's stock after selling 84,409 shares during the period. Donald Smith & CO. Inc. owned 0.49% of NMI worth $15,305,000 at the end of the most recent reporting period.

Other large investors also recently made changes to their positions in the company. Dimensional Fund Advisors LP lifted its position in NMI by 0.7% in the 3rd quarter. Dimensional Fund Advisors LP now owns 4,288,867 shares of the financial services provider's stock valued at $164,437,000 after acquiring an additional 31,570 shares in the last quarter. American Century Companies Inc. lifted its position in NMI by 5.8% in the 3rd quarter. American Century Companies Inc. now owns 2,379,801 shares of the financial services provider's stock valued at $91,242,000 after acquiring an additional 130,002 shares in the last quarter. Van Berkom & Associates Inc. lifted its position in NMI by 5.6% in the 4th quarter. Van Berkom & Associates Inc. now owns 2,016,030 shares of the financial services provider's stock valued at $82,234,000 after acquiring an additional 106,400 shares in the last quarter. Geode Capital Management LLC lifted its position in NMI by 0.3% in the 4th quarter. Geode Capital Management LLC now owns 1,982,722 shares of the financial services provider's stock valued at $80,887,000 after acquiring an additional 5,274 shares in the last quarter. Finally, Barclays PLC lifted its position in NMI by 3.6% in the 3rd quarter. Barclays PLC now owns 1,104,880 shares of the financial services provider's stock valued at $42,361,000 after acquiring an additional 38,021 shares in the last quarter. 94.12% of the stock is currently owned by institutional investors and hedge funds.

NMI Price Performance

NMI stock opened at $37.04 on Thursday. NMI Holdings Inc has a 52 week low of $34.84 and a 52 week high of $43.20. The company's 50 day moving average price is $38.14 and its two-hundred day moving average price is $38.70. The company has a quick ratio of 0.63, a current ratio of 0.63 and a debt-to-equity ratio of 0.16. The stock has a market cap of $2.81 billion, a P/E ratio of 7.54, a P/E/G ratio of 1.27 and a beta of 0.55.

NMI (NASDAQ:NMIH - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The financial services provider reported $1.28 EPS for the quarter, topping 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 analysts' expectations of $153.99 million. During the same quarter in the previous year, the firm posted $1.28 EPS. NMI's revenue was up 5.9% on a year-over-year basis. On average, equities analysts predict that NMI Holdings Inc will post 5.12 earnings per share for the current year.

Insiders Place Their Bets

In other NMI news, Director Michael Curry Montgomery sold 1,554 shares of the firm's stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $37.90, for a total value of $58,896.60. Following the completion of the sale, the director directly owned 69,026 shares of the company's stock, valued at $2,616,085.40. This trade represents a 2.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Chairman Bradley M. Shuster sold 18,953 shares of the firm's stock in a transaction on Tuesday, March 24th. The stock was sold at an average price of $37.35, for a total value of $707,894.55. Following the completion of the sale, the chairman directly owned 415,411 shares of the company's stock, valued at $15,515,600.85. This represents a 4.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 39,503 shares of company stock valued at $1,470,593 over the last three months. Company insiders own 2.44% of the company's stock.

Analysts Set New Price Targets

Several equities analysts recently weighed in on the stock. UBS Group set a $46.00 price target on shares of NMI in a research report on Friday, May 22nd. Royal Bank Of Canada assumed coverage on shares of NMI in a research report on Friday, May 22nd. They issued an "outperform" rating and a $46.00 price target on the stock. Barclays dropped their price target on shares of NMI from $44.00 to $43.00 and set an "equal weight" rating on the stock in a research report on Monday, April 6th. JPMorgan Chase & Co. dropped their price target on shares of NMI from $44.00 to $43.00 and set an "overweight" rating on the stock in a research report on Thursday, April 9th. Finally, Weiss Ratings cut shares of NMI from a "buy (b)" rating to a "buy (b-)" rating in a research report on Thursday, May 28th. Four research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $44.80.

About NMI

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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