Vanguard Group Inc. Trims Stake in NMI Holdings Inc $NMIH

Key Points

• Vanguard Group trimmed its stake by 0.9% in Q4, selling 67,082 shares and still owning 7,116,394 shares (about 9.26%) valued at roughly $290.3 million.
• NMI beat estimates with $1.28 EPS vs. $1.22 expected and reported $183.48M in revenue (vs. $153.99M), a 5.9% YoY revenue increase and a 53.8% net margin.
• Analysts' consensus is a "Moderate Buy" with an average target of $42.40 despite recent target trims to about $43.00; four analysts rate Buy and one rates Hold.

Vanguard Group Inc. reduced its position in shares of NMI Holdings Inc (NASDAQ:NMIH - Free Report) by 0.9% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 7,116,394 shares of the financial services provider's stock after selling 67,082 shares during the period. Vanguard Group Inc. owned approximately 9.26% of NMI worth $290,278,000 at the end of the most recent quarter.

Other hedge funds have also recently made changes to their positions in the company. Public Sector Pension Investment Board grew its position in shares of NMI by 5.4% during the 3rd quarter. Public Sector Pension Investment Board now owns 597,447 shares of the financial services provider's stock valued at $22,906,000 after purchasing an additional 30,341 shares in the last quarter. Tudor Investment Corp ET AL grew its position in shares of NMI by 62.6% during the 3rd quarter. Tudor Investment Corp ET AL now owns 368,840 shares of the financial services provider's stock valued at $14,141,000 after purchasing an additional 142,065 shares in the last quarter. Y Intercept Hong Kong Ltd grew its position in shares of NMI by 219.9% during the 3rd quarter. Y Intercept Hong Kong Ltd now owns 86,824 shares of the financial services provider's stock valued at $3,329,000 after purchasing an additional 59,682 shares in the last quarter. Dimensional Fund Advisors LP grew its position in shares of NMI by 0.7% during 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 purchasing an additional 31,570 shares in the last quarter. Finally, AlphaQuest LLC grew its position in NMI by 188.3% in the third quarter. AlphaQuest LLC now owns 93,577 shares of the financial services provider's stock worth $3,588,000 after acquiring an additional 61,116 shares in the last quarter. 94.12% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research analysts recently issued reports on NMIH shares. JPMorgan Chase & Co. cut their target price on shares of NMI from $44.00 to $43.00 and set an "overweight" rating for the company in a research report on Thursday, April 9th. Barclays cut their target price on shares of NMI from $44.00 to $43.00 and set an "equal weight" rating for the company in a research report on Monday, April 6th. UBS Group set a $43.00 target price on shares of NMI in a research report on Monday, January 12th. Keefe, Bruyette & Woods cut their target price on shares of NMI from $50.00 to $46.00 and set an "outperform" rating for the company in a research report on Monday. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of NMI in a research report on Thursday, January 22nd. Four research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $42.40.

NMI Stock Up 0.9%

Shares of NASDAQ:NMIH opened at $38.58 on Friday. The firm has a fifty day moving average of $38.60 and a 200 day moving average of $38.67. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.57 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 capitalization of $2.93 billion, a PE ratio of 7.86, a price-to-earnings-growth ratio of 1.18 and a beta of 0.59.

NMI (NASDAQ:NMIH - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The financial services provider reported $1.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.22 by $0.06. NMI had a net margin of 53.82% and a return on equity of 15.18%. The business had revenue of $183.48 million during the quarter, compared to analyst estimates of $153.99 million. During the same period in the prior year, the business posted $1.28 earnings per share. The company's revenue was up 5.9% on a year-over-year basis. As a group, research analysts anticipate that NMI Holdings Inc will post 5.15 EPS for the current fiscal year.

Insider Buying and Selling at NMI

In other NMI news, EVP Mohammad Nawaz Yousaf sold 16,000 shares of the company's stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $39.89, for a total transaction of $638,240.00. Following the completion of the sale, the executive vice president directly owned 38,733 shares in the company, valued at $1,545,059.37. This represents a 29.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Norman Peter Fitzgerald sold 22,500 shares of the company's stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $39.94, for a total transaction of $898,650.00. Following the sale, the executive vice president owned 32,445 shares of the company's stock, valued at approximately $1,295,853.30. The trade was a 40.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 189,412 shares of company stock worth $7,357,746 over the last three months. Company insiders own 2.44% of the company's stock.

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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