NMI (NASDAQ:NMIH) Rating Increased to Moderate Buy at Royal Bank Of Canada

Key Points

• Royal Bank of Canada upgraded NMI (NASDAQ:NMIH) to a moderate buy, reinforcing a generally positive analyst view. Overall, four analysts rate it a Buy and one rates it Hold, with a consensus price target of $44.80.
• NMI’s latest earnings beat expectations, reporting $1.28 EPS versus the $1.22 consensus and revenue of $183.48 million versus the $153.99 million estimate. Revenue rose 5.9% year over year, and analysts expect $5.15 EPS for the full year.
• The stock was trading down about 1% around $37.40, below its recent analyst price targets, while insider selling and heavy institutional ownership remained notable. Hedge funds and institutions own about 94.12% of the shares.

NMI (NASDAQ:NMIH - Get Free Report) was upgraded by research analysts at Royal Bank Of Canada to a "moderate buy" rating in a note issued to investors on Friday,Zacks.com reports.

A number of other equities research analysts also recently weighed in on NMIH. Weiss Ratings reiterated a "buy (b)" rating on shares of NMI in a report on Thursday, January 22nd. Barclays decreased their price objective on NMI from $44.00 to $43.00 and set an "equal weight" rating for the company in a report on Monday, April 6th. UBS Group set a $46.00 price objective on NMI in a report on Friday. JPMorgan Chase & Co. decreased their price objective on NMI from $44.00 to $43.00 and set an "overweight" rating for the company in a report on Thursday, April 9th. Finally, Keefe, Bruyette & Woods decreased their price objective on NMI from $50.00 to $46.00 and set an "outperform" rating for the company in a report on Monday, May 4th. Four investment 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 company presently has an average rating of "Moderate Buy" and a consensus price target of $44.80.

NMI Trading Down 1.0%

Shares of NMIH stock opened at $37.40 on Friday. The company has a market cap of $2.84 billion, a P/E ratio of 7.62, a PEG ratio of 1.30 and a beta of 0.59. The stock has a 50 day simple moving average of $38.37 and a two-hundred day simple moving average of $38.76. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.63 and a current ratio of 0.63. NMI has a fifty-two week low of $34.84 and a fifty-two week high of $43.20.

NMI (NASDAQ:NMIH - Get Free Report) last issued its earnings results on Thursday, April 30th. The financial services provider reported $1.28 earnings per share for the quarter, topping analysts' consensus estimates 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 return on equity of 15.18% and a net margin of 53.82%.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 company posted $1.28 earnings per share. Research analysts forecast that NMI will post 5.15 earnings per share for the current year.

Insider Activity at NMI

In related news, Director Michael Curry Montgomery sold 1,554 shares of NMI 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 transaction, 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Chairman Bradley M. Shuster sold 19,557 shares of the business's stock in a transaction on Thursday, February 26th. The stock was sold at an average price of $39.85, for a total value of $779,346.45. Following the completion of the transaction, the chairman directly owned 415,411 shares in the company, valued at approximately $16,554,128.35. This represents a 4.50% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 97,466 shares of company stock worth $3,700,103. 2.44% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of NMIH. Royal Bank of Canada boosted its position in NMI by 20.4% in the first quarter. Royal Bank of Canada now owns 117,065 shares of the financial services provider's stock worth $4,221,000 after purchasing an additional 19,857 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of NMI by 4.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 46,684 shares of the financial services provider's stock valued at $1,683,000 after buying an additional 2,030 shares during the last quarter. NewEdge Advisors LLC purchased a new position in shares of NMI during the 1st quarter valued at $256,000. Ashton Thomas Private Wealth LLC purchased a new position in shares of NMI during the 1st quarter valued at $203,000. Finally, Jane Street Group LLC lifted its position in shares of NMI by 1,312.9% during the 1st 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 last quarter. Hedge funds and other institutional investors own 94.12% of the company's stock.

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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