NMI Holdings Inc (NASDAQ:NMIH) Receives $42.33 Average Target Price from Analysts

Key Points

• NMI Holdings Inc has received a consensus rating of "Moderate Buy" from six brokerages, with an average 1-year target price set at $42.33.
• Recent insider trading includes the sale of 21,545 shares by Chairman Bradley M. Shuster, reflecting a 4.99% decrease in his holdings, and a 2.76% decrease by Director Michael Curry Montgomery.
• Large institutional investors have increased their stakes in NMI, with notable increases by Millennium Management and Assenagon Asset Management during the first quarter.

NMI Holdings Inc (NASDAQ:NMIH - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the six research firms that are covering the firm, MarketBeat.com reports. Three research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $42.3333.

Several analysts have weighed in on NMIH shares. Compass Point reissued a "buy" rating and set a $37.00 price objective (up from $34.00) on shares of NMI in a report on Friday, May 23rd. Barclays increased their price objective on NMI from $41.00 to $42.00 and gave the company an "equal weight" rating in a report 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. Keefe, Bruyette & Woods lowered NMI from an "outperform" rating to a "market perform" rating and increased their target price for the stock from $42.00 to $43.00 in a report on Monday, July 7th. Finally, JPMorgan Chase & Co. increased their target price on NMI from $41.00 to $44.00 and gave the company an "overweight" rating in a research report on Friday, July 11th.

NMI Stock Up 0.9%

NMIH traded up $0.35 during midday trading on Friday, hitting $37.95. 95,667 shares of the company's stock traded hands, compared to its average volume of 582,804. NMI has a one year low of $31.90 and a one year high of $43.20. The company has a debt-to-equity ratio of 0.17, a current ratio of 0.74 and a quick ratio of 0.74. The stock's fifty day simple moving average is $39.71 and its 200-day simple moving average is $37.36. The company has a market cap of $2.94 billion, a PE ratio of 8.05, a price-to-earnings-growth ratio of 1.08 and a beta of 0.57.

NMI (NASDAQ:NMIH - Get Free Report) last issued its earnings results on Tuesday, July 29th. The financial services provider reported $1.22 EPS for the quarter, topping the consensus estimate of $1.16 by $0.06. The firm 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%. NMI's quarterly revenue was up 7.2% compared to the same quarter last year. During the same period last year, the business earned $1.20 earnings per share. As a group, equities analysts anticipate that NMI will post 4.62 earnings per share for the current fiscal year.

Insider Activity at NMI

In other news, Director Michael Curry Montgomery sold 1,875 shares of the firm'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 transaction, the director owned 66,068 shares in the company, valued at $2,513,887.40. This trade represents a 2.76% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Chairman Bradley M. Shuster sold 21,545 shares of NMI stock in a transaction 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 of the company's stock, valued at approximately $16,211,371.52. The trade was a 4.99% decrease in their position. The disclosure for this sale can be found here. 3.00% of the stock is owned by company insiders.

Hedge Funds Weigh In On NMI

Several large investors have recently made changes to their positions in the business. Sumitomo Mitsui Trust Group Inc. lifted its position in shares of NMI by 18.2% in the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 7,800 shares of the financial services provider's stock worth $281,000 after buying an additional 1,200 shares in the last quarter. Principal Financial Group Inc. grew its stake in NMI by 2.3% in the first quarter. Principal Financial Group Inc. now owns 462,641 shares of the financial services provider's stock worth $16,678,000 after purchasing an additional 10,377 shares in the last quarter. Wealth Enhancement Advisory Services LLC grew its stake in NMI by 90.8% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 11,543 shares of the financial services provider's stock worth $416,000 after purchasing an additional 5,492 shares in the last quarter. Allspring Global Investments Holdings LLC lifted its holdings in NMI by 53.9% during the first quarter. Allspring Global Investments Holdings LLC now owns 19,012 shares of the financial services provider's stock worth $696,000 after buying an additional 6,659 shares during the period. Finally, SG Americas Securities LLC purchased a new stake in NMI during the first quarter worth $530,000. 94.12% of the stock is currently owned by hedge funds and other institutional investors.

About NMI

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.