Magnetar Financial LLC Makes New Investment in NMI Holdings Inc $NMIH

Key Points

• Magnetar Financial LLC has acquired a new position in NMI Holdings Inc, purchasing 6,967 shares valued at approximately $251,000 during the first quarter of 2023.
• Other institutional investors have also increased their positions in NMI, with Wealth Enhancement Advisory Services LLC raising its holdings by 90.8% and Entropy Technologies LP increasing its stake by 136.9% in the same period.
• NMI Holdings reported a quarterly earnings per share of $1.22, surpassing estimates, but its revenue of $149.07 million was below analyst expectations of $173.39 million.

Magnetar Financial LLC purchased a new position in shares of NMI Holdings Inc (NASDAQ:NMIH - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 6,967 shares of the financial services provider's stock, valued at approximately $251,000.

A number of other large investors also recently modified their holdings of the company. Sumitomo Mitsui Trust Group Inc. increased its holdings in NMI by 18.2% in the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 7,800 shares of the financial services provider's stock valued at $281,000 after buying an additional 1,200 shares during the last quarter. Principal Financial Group Inc. raised its position in NMI by 2.3% in the 1st quarter. Principal Financial Group Inc. now owns 462,641 shares of the financial services provider's stock valued at $16,678,000 after purchasing an additional 10,377 shares during the last quarter. Wealth Enhancement Advisory Services LLC raised its holdings in shares of NMI by 90.8% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 11,543 shares of the financial services provider's stock valued at $416,000 after buying an additional 5,492 shares during the last quarter. Entropy Technologies LP raised its stake in NMI by 136.9% during the 1st quarter. Entropy Technologies LP now owns 18,688 shares of the financial services provider's stock valued at $674,000 after acquiring an additional 10,800 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC lifted its holdings in shares of NMI by 53.9% during the first quarter. Allspring Global Investments Holdings LLC now owns 19,012 shares of the financial services provider's stock worth $696,000 after purchasing an additional 6,659 shares during the period. 94.12% of the stock is owned by hedge funds and other institutional investors.

NMI Stock Down 0.4%

Shares of NMIH opened at $39.20 on Wednesday. The firm has a market cap of $3.04 billion, a PE ratio of 8.32, a price-to-earnings-growth ratio of 1.14 and a beta of 0.55. The company has a quick ratio of 0.74, a current ratio of 0.74 and a debt-to-equity ratio of 0.17. The company's fifty day moving average is $39.36 and its two-hundred day moving average is $37.58. NMI Holdings Inc has a fifty-two week low of $31.90 and a fifty-two week high of $43.20.

NMI (NASDAQ:NMIH - Get Free Report) last released its quarterly earnings data on Tuesday, July 29th. The financial services provider reported $1.22 earnings per share for the quarter, beating the consensus estimate of $1.16 by $0.06. NMI had a return on equity of 16.51% and a net margin of 55.57%.The business had revenue of $149.07 million for the quarter, compared to analyst estimates of $173.39 million. During the same period in the previous year, the company posted $1.20 EPS. The company's revenue was up 7.2% compared to the same quarter last year. Analysts forecast that NMI Holdings Inc will post 4.62 earnings per share for the current year.

Insider Buying and Selling

In other NMI news, Chairman Bradley M. Shuster sold 21,545 shares of the business's stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $39.56, for a total transaction of $852,320.20. Following the transaction, the chairman owned 409,792 shares in the company, valued at $16,211,371.52. The trade was a 4.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 3.00% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

NMIH has been the topic of a number of recent analyst reports. Compass Point reiterated a "buy" rating and set a $37.00 price target (up from $34.00) on shares of NMI in a research note on Friday, May 23rd. Wall Street Zen cut NMI from a "buy" rating to a "hold" rating in a research report on Saturday, July 12th. Barclays raised their price target on NMI from $41.00 to $42.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. Keefe, Bruyette & Woods lowered NMI from an "outperform" rating to a "market perform" rating and upped their price objective for the stock from $42.00 to $43.00 in a report on Monday, July 7th. Finally, JPMorgan Chase & Co. increased their price objective on NMI from $41.00 to $44.00 and gave the stock an "overweight" rating in a research report on Friday, July 11th. Three investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $42.33.

NMI Company Profile

NMI Holdings, Inc provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance services, such as primary and pool insurance; and outsourced loan review services to mortgage loan originators. It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders, and other non-bank lenders.

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