NMI Holdings Inc (NASDAQ:NMIH) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts remain broadly positive on NMI Holdings: Five of six analysts rate the stock a buy, while one recommends holding it, producing a “Moderate Buy” consensus and an average 12-month price target of $46.83.
• Recent quarterly results exceeded expectations. NMI reported $1.38 in earnings per share versus the $1.28 consensus estimate, while revenue reached $187.89 million, up 8.1% year over year and well above forecasts.
• Capital returns support the outlook, but rising defaults are a risk. NMI has about $167 million in remaining share-repurchase capacity, although management expects mortgage-insurance defaults to increase, potentially pressuring future claims and earnings.

Shares of NMI Holdings Inc (NASDAQ:NMIH - Get Free Report) have received an average rating of "Moderate Buy" from the six analysts that are currently covering the stock, Marketbeat.com reports. One investment analyst has rated the stock with a hold rating and five have given a buy rating to the company. The average 1-year price target among analysts that have issued a report on the stock in the last year is $46.8333.

A number of equities analysts recently commented on the company. UBS Group set a $46.00 price target on NMI in a report on Friday, May 22nd. Keefe, Bruyette & Woods raised their price objective on NMI from $46.00 to $47.00 and gave the company an "outperform" rating in a research report on Thursday, June 25th. Weiss Ratings raised NMI from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, June 12th. Royal Bank Of Canada began coverage on NMI in a research note on Friday, May 22nd. They set an "outperform" rating and a $46.00 target price for the company. Finally, Barclays decreased their target price on NMI from $44.00 to $43.00 and set an "equal weight" rating on the stock in a report on Monday, April 6th.

Insider Buying and Selling

In other NMI news, Director Michael Curry Montgomery sold 1,554 shares of NMI stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $37.90, for a total transaction of $58,896.60. Following the completion of the transaction, the director directly owned 69,026 shares of the company's stock, valued at $2,616,085.40. The trade was a 2.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 2.44% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of NMIH. Dimensional Fund Advisors LP raised its holdings in NMI by 0.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,351,808 shares of the financial services provider's stock valued at $163,237,000 after acquiring an additional 34,372 shares during the period. Van Berkom & Associates Inc. lifted its holdings in shares of NMI by 5.6% during the fourth quarter. Van Berkom & Associates Inc. now owns 2,016,030 shares of the financial services provider's stock worth $82,234,000 after buying an additional 106,400 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of NMI by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 1,982,722 shares of the financial services provider's stock worth $80,887,000 after buying an additional 5,274 shares in the last quarter. Bank of America Corp DE boosted its position in shares of NMI by 22.7% in the first 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 acquiring an additional 241,724 shares during the period. Finally, Qube Research & Technologies Ltd boosted its position in shares of NMI by 10.8% in the second quarter. Qube Research & Technologies Ltd now owns 758,481 shares of the financial services provider's stock valued at $32,000,000 after acquiring an additional 73,695 shares during the period. Institutional investors and hedge funds own 94.12% of the company's stock.

NMI Stock Performance

NMIH stock traded up $0.63 during trading hours on Friday, reaching $44.07. The stock had a trading volume of 80,714 shares, compared to its average volume of 514,027. The stock has a market capitalization of $3.35 billion, a PE ratio of 8.99, a price-to-earnings-growth ratio of 1.54 and a beta of 0.54. The company has a debt-to-equity ratio of 0.16, a current ratio of 0.63 and a quick ratio of 0.63. The stock has a 50-day simple moving average of $39.48 and a 200 day simple moving average of $38.95. NMI has a fifty-two week low of $34.84 and a fifty-two week high of $46.74.

NMI (NASDAQ:NMIH - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The financial services provider reported $1.38 earnings per share for the quarter, topping the consensus estimate of $1.28 by $0.10. The company had revenue of $187.89 million for the quarter, compared to analyst estimates of $156.26 million. NMI had a net margin of 53.82% and a return on equity of 15.18%. NMI's revenue for the quarter was up 8.1% compared to the same quarter last year. During the same period in the previous year, the business earned $1.22 EPS. Analysts predict that NMI will post 5.11 EPS for the current fiscal year.

Trending Headlines about NMI

Here are the key news stories impacting NMI this week:

• Positive Sentiment: Quarterly earnings beat estimates. NMIH reported diluted earnings of $1.38 per share, up from $1.21 a year earlier and above the $1.28 analyst consensus. Net income rose to $105.8 million from $96.2 million year over year. NMI Holdings Reports Record Second Quarter 2026 Financial Results
• Positive Sentiment: Revenue also surpassed expectations. Second-quarter revenue was $187.89 million, well ahead of the approximately $156.26 million consensus estimate and up 8.1% from the prior-year period. The company’s 53.82% net margin and 15.18% return on equity highlight continued profitability. NMI Holdings Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Capital returns remain a support for the stock. NMIH said it has approximately $167 million of remaining share-repurchase capacity, signaling continued willingness to return capital and potentially support per-share earnings. NMIH Capital Return and Buyback Update
• Neutral Sentiment: Management maintained a constructive but cautious outlook. The earnings call focused on ongoing capital deployment and operating performance, while noting that credit conditions and mortgage-insurance defaults will require monitoring. NMI Holdings Q2 2026 Earnings Call Transcript
• Negative Sentiment: Expected higher defaults are a risk. NMIH expects defaults to trend upward, which could increase claims and loss provisions, pressure future earnings, and partially offset the benefit of strong current results. NMIH Defaults Outlook

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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