NMI Holdings Inc (NASDAQ:NMIH) Shares Sold by Donald Smith & CO. Inc.

Key Points

• Donald Smith & CO. Inc. has reduced its stake in NMI Holdings Inc by 35.1%, selling 459,234 shares in the first quarter, leaving it with approximately 1.09% ownership of the company.
• Insider activity includes Chairman Bradley M. Shuster selling 21,545 shares at an average price of $39.56, which represents a 4.99% decrease in his position in the company.
• Despite various institutional transactions, the company reported a 7.2% year-over-year revenue increase, reaching $149.07 million for the quarter, though it fell short of analysts' expectations of $173.39 million.

Donald Smith & CO. Inc. decreased its holdings in shares of NMI Holdings Inc (NASDAQ:NMIH - Free Report) by 35.1% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 848,634 shares of the financial services provider's stock after selling 459,234 shares during the quarter. Donald Smith & CO. Inc. owned about 1.09% of NMI worth $30,593,000 as of its most recent SEC filing.

A number of other hedge funds also recently bought and sold shares of the business. LPL Financial LLC raised its stake in shares of NMI by 197.6% in the fourth quarter. LPL Financial LLC now owns 49,962 shares of the financial services provider's stock valued at $1,837,000 after acquiring an additional 33,174 shares during the period. Alliancebernstein L.P. increased its stake in NMI by 5.0% in the 4th quarter. Alliancebernstein L.P. now owns 99,364 shares of the financial services provider's stock worth $3,653,000 after buying an additional 4,768 shares during the period. Franklin Resources Inc. increased its stake in NMI by 3.4% in the 4th quarter. Franklin Resources Inc. now owns 101,535 shares of the financial services provider's stock worth $3,732,000 after buying an additional 3,385 shares during the period. Wells Fargo & Company MN increased its stake in NMI by 2.1% in the 4th quarter. Wells Fargo & Company MN now owns 50,662 shares of the financial services provider's stock worth $1,862,000 after buying an additional 1,033 shares during the period. Finally, Envestnet Asset Management Inc. increased its stake in NMI by 21.0% in the 4th quarter. Envestnet Asset Management Inc. now owns 38,943 shares of the financial services provider's stock worth $1,432,000 after buying an additional 6,759 shares during the period. Hedge funds and other institutional investors own 94.12% of the company's stock.

Wall Street Analysts Forecast Growth

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

NMI Stock Down 0.2%

NMIH stock traded down $0.10 during midday trading on Thursday, reaching $39.92. 84,345 shares of the company were exchanged, compared to its average volume of 573,971. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.74 and a current ratio of 0.74. NMI Holdings Inc has a 1-year low of $31.90 and a 1-year high of $43.20. The stock's 50-day simple moving average is $39.64 and its 200 day simple moving average is $37.41. The company has a market cap of $3.10 billion, a price-to-earnings ratio of 8.48, a price-to-earnings-growth ratio of 1.15 and a beta of 0.57.

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

Insider Activity at NMI

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

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.