NMI (NASDAQ:NMIH) Reaches New 1-Year High on Analyst Upgrade

Key Points

• NMI Holdings (NASDAQ:NMIH) hit a new 52-week high after JPMorgan raised its price target from $43 to $48 and kept an overweight rating. The stock traded as high as $42.47 during the session.
• Other analysts remain broadly positive, with the consensus rating at Moderate Buy and an average price target of $46.00. Four analysts rate the stock Buy, while one rates it Hold.
• NMI also reported solid quarterly results, beating EPS and revenue estimates with $1.28 EPS and $183.47 million in revenue. The company has a market cap of about $3.18 billion and relatively low leverage, with a debt-to-equity ratio of 0.16.

Shares of NMI Holdings Inc (NASDAQ:NMIH - Get Free Report) reached a new 52-week high during mid-day trading on Tuesday after JPMorgan Chase & Co. raised their price target on the stock from $43.00 to $48.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. NMI traded as high as $42.47 and last traded at $41.91, with a volume of 511722 shares changing hands. The stock had previously closed at $41.53.

A number of other analysts have also weighed in on NMIH. UBS Group set a $46.00 target price on shares of NMI in a research note on Friday, May 22nd. Barclays decreased their price target on shares of NMI from $44.00 to $43.00 and set an "equal weight" rating for the company in a research note on Monday, April 6th. Keefe, Bruyette & Woods boosted their price target on shares of NMI from $46.00 to $47.00 and gave the stock an "outperform" rating in a report on Thursday, June 25th. Weiss Ratings raised shares of NMI from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, June 12th. Finally, Royal Bank Of Canada initiated coverage on shares of NMI in a report on Friday, May 22nd. They issued an "outperform" rating and a $46.00 price objective on the stock. Four investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, NMI presently has a consensus rating of "Moderate Buy" and an average target price of $46.00.

Insider Transactions at NMI

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Allworth Financial LP raised its stake 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 worth $25,000 after purchasing an additional 437 shares during the last quarter. Maseco LLP purchased a new stake in shares of NMI in the fourth quarter valued at about $31,000. IFP Advisors Inc increased its stake 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 worth $32,000 after acquiring an additional 521 shares during the period. Pacer Advisors Inc. increased its stake in shares of NMI by 58.7% during the first quarter. Pacer Advisors Inc. now owns 1,006 shares of the financial services provider's stock worth $38,000 after acquiring an additional 372 shares during the period. Finally, Bessemer Group Inc. raised its holdings in NMI by 34.0% during the first quarter. Bessemer Group Inc. now owns 1,071 shares of the financial services provider's stock worth $40,000 after purchasing an additional 272 shares in the last quarter. 94.12% of the stock is currently owned by hedge funds and other institutional investors.

NMI Stock Performance

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 market cap of $3.18 billion, a price-to-earnings ratio of 8.54, a P/E/G ratio of 1.43 and a beta of 0.54. The stock's 50-day moving average is $38.26 and its 200 day moving average is $38.79.

NMI (NASDAQ:NMIH - Get Free Report) last released its earnings results on Thursday, April 30th. The financial services provider reported $1.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.22 by $0.06. The company had revenue of $183.47 million for the quarter, compared to analysts' expectations of $153.99 million. NMI had a return on equity of 15.18% and a net margin of 53.82%.The firm's quarterly revenue was up 5.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.28 EPS. As a group, analysts predict that NMI Holdings Inc will post 5.12 earnings per share for the current fiscal year.

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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