NMI Holdings Inc (NASDAQ:NMIH) Stake Reduced 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. lowered its stake in NMI Holdings Inc (NASDAQ:NMIH - Free Report) by 35.1% during the first quarter, according to its most recent 13F filing with the Securities and 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 approximately 1.09% of NMI worth $30,593,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also recently bought and sold shares of NMIH. Sound Income Strategies LLC purchased a new position in NMI in the 1st quarter worth about $25,000. Opal Wealth Advisors LLC purchased a new position in NMI in the 1st quarter worth about $33,000. Neo Ivy Capital Management purchased a new position in NMI in the 1st quarter worth about $47,000. GAMMA Investing LLC increased its stake in NMI by 104.2% in the 1st quarter. GAMMA Investing LLC now owns 1,564 shares of the financial services provider's stock worth $56,000 after purchasing an additional 798 shares in the last quarter. Finally, Covestor Ltd increased its stake in NMI by 601.1% in the 4th quarter. Covestor Ltd now owns 1,893 shares of the financial services provider's stock worth $70,000 after purchasing an additional 1,623 shares in the last quarter. Hedge funds and other institutional investors own 94.12% of the company's stock.

Insider Activity at NMI

In related news, Chairman Bradley M. Shuster sold 21,545 shares of the business's stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $39.56, for a total value of $852,320.20. Following the completion of the sale, the chairman directly owned 409,792 shares in the company, valued at approximately $16,211,371.52. The trade was a 4.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Michael Curry Montgomery sold 1,875 shares of the business's stock in a transaction that occurred on Tuesday, May 13th. The stock was sold at an average price of $38.05, for a total value of $71,343.75. Following the completion of the sale, the director owned 66,068 shares of the company's stock, valued at approximately $2,513,887.40. This trade represents a 2.76% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 3.00% of the company's stock.

NMI Trading Up 1.9%

Shares of NASDAQ NMIH opened at $38.98 on Friday. The stock has a market cap of $3.02 billion, a price-to-earnings ratio of 8.28, a PEG ratio of 1.13 and a beta of 0.57. The business has a 50 day simple moving average of $39.63 and a 200 day simple moving average of $37.37. NMI Holdings Inc has a 52 week low of $31.90 and a 52 week high of $43.20. 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 (NASDAQ:NMIH - Get Free Report) last announced its quarterly earnings results on Tuesday, July 29th. The financial services provider reported $1.22 EPS for the quarter, beating the consensus estimate of $1.16 by $0.06. The business had revenue of $149.07 million during the quarter, compared to analysts' expectations of $173.39 million. NMI had a return on equity of 16.51% and a net margin of 55.57%. The firm's quarterly revenue was up 7.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.20 EPS. On average, research analysts predict that NMI Holdings Inc will post 4.62 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of brokerages recently weighed in on NMIH. Compass Point reissued a "buy" rating and issued a $37.00 price target (up previously from $34.00) on shares of NMI in a research note on Friday, May 23rd. Barclays lifted their target price on NMI from $41.00 to $42.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 8th. Wall Street Zen cut NMI from a "buy" rating to a "hold" rating in a research note on Saturday, July 12th. JPMorgan Chase & Co. lifted their target price on NMI from $41.00 to $44.00 and gave the company an "overweight" rating in a research note on Friday, July 11th. Finally, Keefe, Bruyette & Woods cut NMI from an "outperform" rating to a "market perform" rating and lifted their target price for the company from $42.00 to $43.00 in a research note on Monday, July 7th. Four investment analysts have rated the stock with a hold rating and three have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus 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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