NMI (NASDAQ:NMIH) Share Price Passes Below Two Hundred Day Moving Average - What's Next?

Key Points

• NMI Holdings shares fell below their 200-day moving average, trading as low as $36.17 versus a 200-day average of $38.70, highlighting recent weakness in the stock.
• Despite the pullback, analysts remain mostly positive: the stock carries a “Moderate Buy” consensus with an average target price of $44.80, and several firms recently set targets around $43 to $46.
• NMI’s latest earnings were better than expected, with Q1 EPS of $1.28 beating estimates and revenue of $183.48 million exceeding forecasts, while insiders have also been net sellers recently.

NMI Holdings Inc (NASDAQ:NMIH - Get Free Report)'s share price passed below its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $38.70 and traded as low as $36.17. NMI shares last traded at $36.55, with a volume of 498,688 shares traded.

Analysts Set New Price Targets

NMIH has been the topic of a number of recent research reports. UBS Group set a $46.00 price objective on NMI in a research report on Friday, May 22nd. Weiss Ratings lowered NMI from a "buy (b)" rating to a "buy (b-)" rating in a research report on Thursday, May 28th. Barclays cut their price objective on NMI from $44.00 to $43.00 and set an "equal weight" rating on the stock in a research report on Monday, April 6th. JPMorgan Chase & Co. cut their price objective on NMI from $44.00 to $43.00 and set an "overweight" rating on the stock in a research report on Thursday, April 9th. Finally, Royal Bank Of Canada initiated coverage on NMI in a research report on Friday, May 22nd. They set an "outperform" rating and a $46.00 price objective on the stock. Four analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $44.80.

NMI Trading Up 1.3%

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 business's 50 day moving average is $38.18 and its 200 day moving average is $38.70. The stock has a market cap of $2.78 billion, a price-to-earnings ratio of 7.44, a P/E/G ratio of 1.25 and a beta of 0.55.

NMI (NASDAQ:NMIH - Get Free Report) last issued its earnings results on Thursday, April 30th. The financial services provider reported $1.28 EPS for the quarter, topping analysts' consensus estimates of $1.22 by $0.06. The firm had revenue of $183.48 million during the quarter, compared to the consensus estimate of $153.99 million. NMI had a net margin of 53.82% and a return on equity of 15.18%. The company's revenue was up 5.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.28 earnings per share. As a group, equities analysts expect that NMI Holdings Inc will post 5.12 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Chairman Bradley M. Shuster sold 18,996 shares of the business's stock in a transaction on Thursday, March 19th. The shares were sold at an average price of $37.05, for a total transaction of $703,801.80. Following the completion of the transaction, the chairman owned 415,411 shares in the company, valued at approximately $15,390,977.55. The trade was a 4.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Michael Curry Montgomery sold 1,554 shares of the business's stock in a transaction 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 approximately $2,616,085.40. The trade was a 2.20% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 58,479 shares of company stock valued at $2,164,735. Insiders own 2.44% of the company's stock.

Institutional Investors Weigh In On NMI

A number of institutional investors and hedge funds have recently bought and sold shares of NMIH. Bank of America Corp DE lifted its position in NMI by 95.3% in the third quarter. Bank of America Corp DE now owns 1,014,557 shares of the financial services provider's stock valued at $38,898,000 after acquiring an additional 495,144 shares during the last quarter. River Road Asset Management LLC purchased a new stake in NMI in the fourth quarter valued at $15,104,000. BNP Paribas Financial Markets lifted its position in NMI by 184.3% in the second quarter. BNP Paribas Financial Markets now owns 427,397 shares of the financial services provider's stock valued at $18,032,000 after acquiring an additional 277,065 shares during the last quarter. Ameriprise Financial Inc. lifted its position in NMI by 85.7% in the third quarter. Ameriprise Financial Inc. now owns 600,139 shares of the financial services provider's stock valued at $23,009,000 after acquiring an additional 276,897 shares during the last quarter. Finally, Jane Street Group LLC lifted its position in NMI by 1,312.9% in the first quarter. Jane Street Group LLC now owns 224,152 shares of the financial services provider's stock valued at $8,081,000 after acquiring an additional 208,287 shares during the last quarter. 94.12% of the stock is owned by hedge funds and other institutional investors.

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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