Keefe, Bruyette & Woods Reaffirms "Market Perform" Rating for NMI (NASDAQ:NMIH)

Key Points

• Keefe, Bruyette & Woods reaffirmed its “Market Perform” rating on NMI Holdings, with a $47 price target implying approximately 5% upside. The stock has a consensus “Moderate Buy” rating and an average target of $47.17.
• NMI reported quarterly earnings of $1.38 per share, exceeding the $1.28 consensus estimate, while revenue reached $187.89 million, up 8.1% year over year and above expectations.
• NMI shares rose 1% to $44.75, and institutional investors own a substantial 94.12% of the company’s outstanding stock.

NMI (NASDAQ:NMIH - Get Free Report)'s stock had its "market perform" rating reissued by analysts at Keefe, Bruyette & Woods in a research note issued on Monday, Marketbeat reports. They currently have a $47.00 target price on the financial services provider's stock. Keefe, Bruyette & Woods' price objective would suggest a potential upside of 5.03% from the stock's current price.

Several other brokerages have also issued reports on NMIH. Royal Bank Of Canada started coverage on NMI in a report on Friday, May 22nd. They set an "outperform" rating and a $46.00 price objective on the stock. JPMorgan Chase & Co. upped their price objective on NMI from $48.00 to $50.00 and gave the company an "overweight" rating in a research note on Friday. Truist Financial lifted their target price on NMI from $49.00 to $51.00 and gave the company a "buy" rating in a research note on Friday. Weiss Ratings upgraded NMI from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, June 12th. Finally, UBS Group set a $46.00 price objective on shares of NMI in a research report on Friday, May 22nd. Four analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $47.17.

NMI Stock Up 1.0%

NMI stock traded up $0.45 during trading on Monday, reaching $44.75. The stock had a trading volume of 30,718 shares, compared to its average volume of 516,328. NMI has a 52-week low of $34.84 and a 52-week high of $46.74. The business has a 50 day moving average price of $39.62 and a 200 day moving average price of $38.98. The stock has a market cap of $3.40 billion, a PE ratio of 8.80, a P/E/G ratio of 1.53 and a beta of 0.54. The company has a quick ratio of 0.63, a current ratio of 0.65 and a debt-to-equity ratio of 0.15.

NMI (NASDAQ:NMIH - Get Free Report) last issued its earnings results on Thursday, July 30th. The financial services provider reported $1.38 EPS for the quarter, topping analysts' consensus estimates of $1.28 by $0.10. NMI had a net margin of 54.10% and a return on equity of 15.13%. The firm had revenue of $187.89 million during the quarter, compared to the consensus estimate of $156.26 million. During the same quarter in the previous year, the firm posted $1.22 earnings per share. The company's revenue was up 8.1% compared to the same quarter last year. On average, analysts predict that NMI will post 5.14 EPS for the current year.

Insider Activity

In other news, Director Michael Curry Montgomery sold 1,554 shares of the business's stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $37.90, for a total transaction of $58,896.60. Following the sale, the director owned 69,026 shares of the company's stock, valued at $2,616,085.40. The trade was a 2.20% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 2.44% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Wedge Capital Management L L P NC increased its holdings in NMI by 2.3% during the 2nd quarter. Wedge Capital Management L L P NC now owns 162,159 shares of the financial services provider's stock valued at $6,663,000 after acquiring an additional 3,586 shares in the last quarter. GAMMA Investing LLC increased its position in NMI by 11.6% during the 2nd quarter. GAMMA Investing LLC now owns 2,989 shares of the financial services provider's stock worth $123,000 after purchasing an additional 310 shares in the last quarter. Pacer Advisors Inc. raised its stake in NMI by 58.7% in the 1st quarter. Pacer Advisors Inc. now owns 1,006 shares of the financial services provider's stock valued at $38,000 after purchasing an additional 372 shares during the last quarter. Bank of America Corp DE lifted its holdings in NMI by 22.7% in the 1st quarter. Bank of America Corp DE now owns 1,304,633 shares of the financial services provider's stock valued at $48,937,000 after purchasing an additional 241,724 shares in the last quarter. Finally, Edgestream Partners L.P. lifted its holdings in NMI by 5.9% in the 1st quarter. Edgestream Partners L.P. now owns 233,637 shares of the financial services provider's stock valued at $8,764,000 after purchasing an additional 13,003 shares in the last quarter. 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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