NMI (NASDAQ:NMIH) Stock Rating Lowered by Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods downgraded NMI Holdings from “moderate buy” to “hold,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $47.17.
• NMI reported stronger-than-expected quarterly results, posting $1.38 in EPS versus the $1.28 estimate and revenue of $187.89 million, up 8.1% year over year.
• The stock opened at $44.58, near its 12-month high of $46.74, while institutional investors own a substantial 94.12% of outstanding shares.

NMI (NASDAQ:NMIH - Get Free Report) was downgraded by research analysts at Keefe, Bruyette & Woods from a "moderate buy" rating to a "hold" rating in a research report issued on Sunday,Zacks.com reports.

Other equities research analysts have also issued reports about the company. UBS Group set a $46.00 price objective on NMI in a research note on Friday, May 22nd. Weiss Ratings upgraded NMI from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, June 12th. Barclays cut their price target on NMI from $44.00 to $43.00 and set an "equal weight" rating for the company in a report on Monday, April 6th. Royal Bank Of Canada started coverage on NMI in a research report on Friday, May 22nd. They issued an "outperform" rating and a $46.00 price target for the company. Finally, JPMorgan Chase & Co. raised their price objective on NMI from $48.00 to $50.00 and gave the stock an "overweight" rating in a research note on Friday. Four research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, NMI has an average rating of "Moderate Buy" and an average target price of $47.17.

NMI Stock Performance

NMIH opened at $44.58 on Friday. The company's 50 day moving average is $39.76 and its 200 day moving average is $39.04. The company has a current ratio of 0.65, a quick ratio of 0.63 and a debt-to-equity ratio of 0.15. The company has a market cap of $3.39 billion, a price-to-earnings ratio of 8.78, a PEG ratio of 1.53 and a beta of 0.53. NMI has a 12-month low of $34.84 and a 12-month high of $46.74.

NMI (NASDAQ:NMIH - Get Free Report) last announced its earnings results on Thursday, July 30th. The financial services provider reported $1.38 EPS for the quarter, beating analysts' consensus estimates of $1.28 by $0.10. NMI had a net margin of 54.10% and a return on equity of 15.13%. The business had revenue of $187.89 million during the quarter, compared to analysts' expectations of $156.26 million. During the same period in the prior year, the company earned $1.22 earnings per share. The firm's revenue was up 8.1% on a year-over-year basis. On average, equities research analysts predict that NMI will post 5.14 EPS for the current year.

Insider Buying and Selling

In other NMI 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 value of $58,896.60. Following the sale, 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 position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders own 2.44% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of NMIH. Bank of America Corp DE raised its position in NMI by 95.3% during 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 purchasing an additional 495,144 shares during the period. River Road Asset Management LLC purchased a new stake in NMI during the 4th quarter valued at $15,104,000. BNP Paribas Financial Markets boosted its stake in NMI by 184.3% during the second quarter. BNP Paribas Financial Markets now owns 427,397 shares of the financial services provider's stock worth $18,032,000 after buying an additional 277,065 shares during the period. Ameriprise Financial Inc. increased its position in NMI by 85.7% during 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 increased its position in NMI by 1,312.9% during 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.

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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