NMI (NASDAQ:NMIH) Shares Gap Up Following Earnings Beat

NMI Holdings, Inc. (NASDAQ:NMIH - Get Free Report) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $33.64, but opened at $35.11. NMI shares last traded at $35.44, with a volume of 107,782 shares.

The financial services provider reported $1.28 earnings per share for the quarter, beating the consensus estimate of $1.10 by $0.18. NMI had a return on equity of 17.33% and a net margin of 55.32%. The company had revenue of $173.25 million during the quarter, compared to the consensus estimate of $169.04 million. During the same period in the previous year, the company posted $1.08 EPS. NMI's revenue was up 10.8% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

NMIH has been the subject of a number of research analyst reports. JPMorgan Chase & Co. dropped their price target on shares of NMI from $42.00 to $41.00 and set an "overweight" rating for the company in a research note on Tuesday, April 8th. Barclays lowered NMI from an "overweight" rating to an "equal weight" rating and cut their target price for the stock from $48.00 to $41.00 in a research report on Monday, January 6th. UBS Group cut their price target on NMI from $42.00 to $41.00 and set a "neutral" rating for the company in a research note on Wednesday, February 19th. Finally, Keefe, Bruyette & Woods dropped their price target on NMI from $43.00 to $42.00 and set an "outperform" rating on the stock in a research report on Tuesday, April 8th. Three research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $42.14.

Insider Activity at NMI

In related news, insider William J. Leatherberry sold 13,111 shares of the stock in a transaction dated Wednesday, April 30th. The stock was sold at an average price of $35.56, for a total transaction of $466,227.16. Following the completion of the sale, the insider now owns 163,796 shares in the company, valued at approximately $5,824,585.76. This trade represents a 7.41 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Adam Pollitzer sold 57,166 shares of the business's stock in a transaction on Thursday, May 1st. The stock was sold at an average price of $36.54, for a total transaction of $2,088,845.64. Following the completion of the sale, the chief executive officer now owns 329,465 shares in the company, valued at $12,038,651.10. This represents a 14.79 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 111,360 shares of company stock valued at $4,042,654. 3.00% of the stock is owned by insiders.

Hedge Funds Weigh In On NMI

Institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. boosted its holdings in shares of NMI by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 7,158,877 shares of the financial services provider's stock valued at $263,160,000 after acquiring an additional 39,503 shares during the last quarter. Assenagon Asset Management S.A. lifted its stake in shares of NMI by 70.9% in the 1st quarter. Assenagon Asset Management S.A. now owns 2,034,419 shares of the financial services provider's stock valued at $73,341,000 after purchasing an additional 844,037 shares during the last quarter. American Century Companies Inc. lifted its stake in NMI by 8.0% during the fourth quarter. American Century Companies Inc. now owns 1,957,179 shares of the financial services provider's stock worth $71,946,000 after purchasing an additional 145,591 shares in the last quarter. Donald Smith & CO. Inc. grew its stake in shares of NMI by 34.8% in the fourth quarter. Donald Smith & CO. Inc. now owns 1,307,868 shares of the financial services provider's stock worth $48,077,000 after acquiring an additional 337,996 shares in the last quarter. Finally, Nuveen Asset Management LLC increased its position in shares of NMI by 0.4% in the 4th quarter. Nuveen Asset Management LLC now owns 1,290,675 shares of the financial services provider's stock valued at $47,445,000 after purchasing an additional 4,570 shares during the last quarter. Hedge funds and other institutional investors own 94.12% of the company's stock.

NMI Price Performance

The stock has a market capitalization of $2.93 billion, a price-to-earnings ratio of 8.46, a P/E/G ratio of 1.41 and a beta of 0.56. The company has a quick ratio of 0.83, a current ratio of 0.60 and a debt-to-equity ratio of 0.19. The stock has a fifty day moving average of $34.93 and a 200-day moving average of $36.71.

About NMI

NMI Holdings, Inc provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance services, such as primary and pool insurance; and outsourced loan review services to mortgage loan originators. It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders, and other non-bank lenders.