Keefe, Bruyette & Woods Issues Positive Forecast for NMI (NASDAQ:NMIH) Stock Price

Key Points

• Keefe, Bruyette & Woods raised its price target on NMI from $48 to $50 and kept an "outperform" rating, implying roughly a 27.65% upside from the current share price.
• NMI reported $1.20 EPS for the quarter (beating estimates by $0.03) and shows strong profitability metrics (ROE 15.78%, net margin 55.05%) while trading around $39.17 with a PE of 7.98 and an average analyst target of $43.20.
• Several executives sold stock on Feb. 17 and insiders have disposed of 189,412 shares (~$7.36M) in the last 90 days, even as institutional ownership remains high at 94.12% and insiders own 2.44%.

NMI (NASDAQ:NMIH - Get Free Report) had its target price hoisted by Keefe, Bruyette & Woods from $48.00 to $50.00 in a research note issued on Friday,Benzinga reports. The firm currently has an "outperform" rating on the financial services provider's stock. Keefe, Bruyette & Woods' price objective indicates a potential upside of 27.65% from the stock's current price.

NMIH has been the topic of a number of other reports. Weiss Ratings reaffirmed a "buy (b)" rating on shares of NMI in a research note on Thursday, January 22nd. JPMorgan Chase & Co. dropped their price target on NMI from $44.00 to $43.00 and set an "overweight" rating on the stock in a research note on Thursday. Barclays dropped their price target on NMI from $44.00 to $43.00 and set an "equal weight" rating on the stock in a research note on Monday. Finally, UBS Group set a $43.00 price objective on shares of NMI in a report on Monday, January 12th. Four research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $43.20.

NMI Stock Performance

NASDAQ:NMIH traded down $0.16 during mid-day trading on Friday, reaching $39.17. 73,592 shares of the company's stock were exchanged, compared to its average volume of 470,057. NMI has a one year low of $32.66 and a one year high of $43.20. The firm has a market capitalization of $2.98 billion, a PE ratio of 7.98, a price-to-earnings-growth ratio of 1.07 and a beta of 0.64. The business's fifty day simple moving average is $38.63 and its two-hundred day simple moving average is $38.33. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.57 and a current ratio of 0.57.

NMI (NASDAQ:NMIH - Get Free Report) last issued its earnings results on Tuesday, February 10th. The financial services provider reported $1.20 earnings per share for the quarter, beating analysts' consensus estimates of $1.17 by $0.03. NMI had a return on equity of 15.78% and a net margin of 55.05%.The firm had revenue of $180.74 million for the quarter, compared to the consensus estimate of $180.69 million. During the same quarter last year, the business posted $1.07 EPS. Analysts anticipate that NMI will post 4.62 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, EVP Norman Peter Fitzgerald sold 22,500 shares of the stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $39.94, for a total value of $898,650.00. Following the transaction, the executive vice president owned 32,445 shares of the company's stock, valued at $1,295,853.30. This represents a 40.95% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Mohammad Nawaz Yousaf sold 16,000 shares of the firm's stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $39.89, for a total value of $638,240.00. Following the transaction, the executive vice president owned 38,733 shares in the company, valued at approximately $1,545,059.37. The trade was a 29.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 189,412 shares of company stock worth $7,357,746 in the last ninety days. 2.44% of the stock is currently owned by insiders.

Institutional Investors Weigh In On NMI

A number of large investors have recently made changes to their positions in the business. Rockefeller Capital Management L.P. grew its position in shares of NMI by 35.0% in the 4th quarter. Rockefeller Capital Management L.P. now owns 1,160 shares of the financial services provider's stock worth $47,000 after buying an additional 301 shares during the last quarter. River Road Asset Management LLC bought a new stake in shares of NMI during the fourth quarter valued at approximately $15,104,000. Mercer Global Advisors Inc. ADV boosted its position in shares of NMI by 63.1% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 18,816 shares of the financial services provider's stock valued at $768,000 after purchasing an additional 7,280 shares in the last quarter. State of Tennessee Department of Treasury boosted its position in shares of NMI by 3.1% during the fourth quarter. State of Tennessee Department of Treasury now owns 36,365 shares of the financial services provider's stock valued at $1,408,000 after purchasing an additional 1,084 shares in the last quarter. Finally, EP Wealth Advisors LLC bought a new stake in shares of NMI during the fourth quarter valued at approximately $417,000. 94.12% of the stock is currently owned by institutional investors.

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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