Keefe, Bruyette & Woods Lowers NMI (NASDAQ:NMIH) Price Target to $46.00

Key Points

• Keefe, Bruyette & Woods lowered NMIH's price target to $46.00 (from $50) but kept an "outperform" rating, implying roughly a 23.6% upside from the prior close.
• NMI beat the quarter with $1.28 EPS and $183.48M revenue, showing a strong net margin (53.82%) and 15.18% ROE, and analysts' consensus is a "Moderate Buy" with an average price target of $42.40.
• Insiders sold about 189,412 shares (~$7.36M) over the last quarter (including the chairman and EVP), while institutional investors hold roughly 94.12% of the stock.

NMI (NASDAQ:NMIH - Get Free Report) had its target price decreased by stock analysts at Keefe, Bruyette & Woods from $50.00 to $46.00 in a research report issued to clients and investors on Monday,Benzinga reports. The firm presently has an "outperform" rating on the financial services provider's stock. Keefe, Bruyette & Woods' price target indicates a potential upside of 23.62% from the company's previous close.

Several other research firms also recently weighed in on NMIH. JPMorgan Chase & Co. lowered their price target on shares of NMI from $44.00 to $43.00 and set an "overweight" rating for the company in a research note on Thursday, April 9th. Barclays decreased their price objective on shares of NMI from $44.00 to $43.00 and set an "equal weight" rating on the stock in a research report on Monday, April 6th. UBS Group set a $43.00 price objective on shares of NMI in a research report on Monday, January 12th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of NMI in a research report on Thursday, January 22nd. Four investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $42.40.

NMI Stock Performance

NMI stock opened at $37.21 on Monday. The company has a quick ratio of 0.57, a current ratio of 0.63 and a debt-to-equity ratio of 0.16. The company has a market capitalization of $2.83 billion, a PE ratio of 7.58, a P/E/G ratio of 1.07 and a beta of 0.59. The firm has a fifty day simple moving average of $38.65 and a two-hundred day simple moving average of $38.61. NMI has a twelve month low of $34.84 and a twelve month high of $43.20.

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 for the quarter, topping the consensus estimate of $1.22 by $0.06. The business had revenue of $183.48 million during the quarter, compared to the consensus estimate of $153.99 million. NMI had a net margin of 53.82% and a return on equity of 15.18%. The firm's revenue for the quarter was up 5.9% on a year-over-year basis. During the same period in the previous year, the firm posted $1.28 earnings per share. Research analysts expect that NMI will post 5.13 EPS for the current year.

Insider Buying and Selling at NMI

In other NMI news, Chairman Bradley M. Shuster sold 55,000 shares of the business's stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $39.63, for a total value of $2,179,650.00. Following the transaction, the chairman owned 415,411 shares in the company, valued at approximately $16,462,737.93. The trade was a 11.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Mohammad Nawaz Yousaf sold 16,000 shares of the business'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 transaction, the executive vice president owned 38,733 shares in the company, valued at $1,545,059.37. This represents a 29.23% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 189,412 shares of company stock worth $7,357,746. 2.44% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NMI

Several hedge funds and other institutional investors have recently modified their holdings of NMIH. Bank of America Corp DE increased its position in shares of NMI by 95.3% during the third quarter. Bank of America Corp DE now owns 1,014,557 shares of the financial services provider's stock valued at $38,898,000 after buying an additional 495,144 shares during the period. River Road Asset Management LLC purchased a new position in shares of NMI during the fourth quarter valued at about $15,104,000. BNP Paribas Financial Markets increased its position in shares of NMI by 184.3% during the second quarter. BNP Paribas Financial Markets now owns 427,397 shares of the financial services provider's stock valued at $18,032,000 after buying an additional 277,065 shares during the period. Ameriprise Financial Inc. increased its position in shares of NMI by 85.7% during the third quarter. Ameriprise Financial Inc. now owns 600,139 shares of the financial services provider's stock valued at $23,009,000 after buying an additional 276,897 shares during the period. Finally, Jane Street Group LLC increased its position in shares of NMI by 1,312.9% during the first quarter. Jane Street Group LLC now owns 224,152 shares of the financial services provider's stock valued at $8,081,000 after buying an additional 208,287 shares during the period. Hedge funds and other institutional investors own 94.12% 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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