NMI (NASDAQ:NMIH) Price Target Cut to $43.00 by Analysts at JPMorgan Chase & Co.

Key Points

• JPMorgan cut its price target on NMI to $43.00 (from $44.00) but kept an "overweight" rating, implying about an 8.9% upside; the street consensus is a Moderate Buy with an average target of $42.80 and mixed analyst views (e.g., KBW raised its target to $48 while Barclays cut to $43).
• Fundamentals and insider activity: NMI beat quarterly EPS estimates ($1.20 vs. $1.17), posts strong profitability (net margin 55.05%, ROE 15.78%) and trades near $39.49 with a P/E of 8.05, while insiders sold roughly 189,412 shares (~$7.36M) in the past three months, leaving insiders owning about 3% of the company.

NMI (NASDAQ:NMIH - Get Free Report) had its target price decreased by JPMorgan Chase & Co. from $44.00 to $43.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage presently has an "overweight" rating on the financial services provider's stock. JPMorgan Chase & Co.'s price objective indicates a potential upside of 8.89% from the stock's previous close.

A number of other analysts have also commented on the company. UBS Group set a $43.00 price target on NMI in a report on Monday, January 12th. Keefe, Bruyette & Woods upgraded NMI from a "market perform" rating to an "outperform" rating and boosted their price target for the company from $46.00 to $48.00 in a report on Thursday, December 18th. Weiss Ratings restated a "buy (b)" rating on shares of NMI in a report on Thursday, January 22nd. Finally, Barclays cut their price target on NMI from $44.00 to $43.00 and set an "equal weight" rating on the stock in a report on Monday. Four equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $42.80.

NMI Trading Up 1.5%

Shares of NASDAQ:NMIH traded up $0.58 during trading on Thursday, hitting $39.49. 112,527 shares of the company's stock were exchanged, compared to its average volume of 472,611. NMI has a 1-year low of $32.66 and a 1-year high of $43.20. The firm has a 50-day moving average price of $38.62 and a two-hundred day moving average price of $38.32. The company has a current ratio of 0.57, a quick ratio of 0.57 and a debt-to-equity ratio of 0.16. The firm has a market cap of $3.01 billion, a P/E ratio of 8.05, a PEG ratio of 1.03 and a beta of 0.64.

NMI (NASDAQ:NMIH - Get Free Report) last issued its quarterly earnings results on Tuesday, February 10th. The financial services provider reported $1.20 EPS for the quarter, topping the consensus estimate of $1.17 by $0.03. The company had revenue of $180.74 million during the quarter, compared to analysts' expectations of $180.69 million. NMI had a net margin of 55.05% and a return on equity of 15.78%. During the same quarter in the previous year, the company earned $1.07 EPS. Equities analysts predict that NMI will post 4.62 earnings per share for the current year.

Insider Buying and Selling at NMI

In other NMI news, EVP Norman Peter Fitzgerald sold 22,500 shares of NMI stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $39.94, for a total value of $898,650.00. Following the completion of the transaction, the executive vice president directly owned 32,445 shares of the company's stock, valued at $1,295,853.30. The trade was a 40.95% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Mohammad Nawaz Yousaf sold 16,000 shares of the firm's stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $39.89, for a total transaction of $638,240.00. Following the completion of the sale, 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 disclosure for this sale is available in the SEC filing. Insiders sold 189,412 shares of company stock valued at $7,357,746 in the last three months. Corporate insiders own 3.00% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Allworth Financial LP boosted its position in shares of NMI by 196.0% during the third quarter. Allworth Financial LP now owns 660 shares of the financial services provider's stock valued at $25,000 after buying an additional 437 shares during the last quarter. Maseco LLP purchased a new position in shares of NMI during the fourth quarter valued at approximately $31,000. IFP Advisors Inc boosted its position in shares of NMI by 189.5% during the fourth quarter. IFP Advisors Inc now owns 796 shares of the financial services provider's stock valued at $32,000 after buying an additional 521 shares during the last quarter. Harbor Capital Advisors Inc. boosted its position in shares of NMI by 51.5% during the third quarter. Harbor Capital Advisors Inc. now owns 856 shares of the financial services provider's stock valued at $33,000 after buying an additional 291 shares during the last quarter. Finally, Farther Finance Advisors LLC boosted its position in shares of NMI by 161.5% during the fourth quarter. Farther Finance Advisors LLC now owns 1,004 shares of the financial services provider's stock valued at $41,000 after buying an additional 620 shares during 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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