NMI (NASDAQ:NMIH) Stock Crosses Above 50-Day Moving Average - What's Next?

Key Points

• NMI Holdings shares rose 2.5% and moved above their 50-day moving average of $42.32, trading as high as $43.29.
• Analyst sentiment remains positive overall, with five Buy ratings and two Holds producing a consensus “Moderate Buy” rating and an average price target of $48.43.
• NMI exceeded quarterly expectations, reporting EPS of $1.38 versus the $1.28 consensus and revenue of $187.89 million; however, insiders sold nearly 196,000 shares worth about $8.8 million over the past three months.

NMI Holdings Inc (NASDAQ:NMIH - Get Free Report) shares passed above its 50 day moving average during trading on Thursday. The stock has a 50 day moving average of $42.32 and traded as high as $43.29. NMI shares last traded at $43.18, with a volume of 431,272 shares traded.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. Keefe, Bruyette & Woods downgraded NMI from an "outperform" rating to a "market perform" rating and set a $47.00 price target on the stock. in a research note on Monday, August 3rd. Weiss Ratings raised NMI from a "buy (b)" rating to a "buy (b+)" rating in a report on Monday, October 19th. Truist Financial boosted their target price on NMI from $49.00 to $51.00 and gave the stock a "buy" rating in a report on Friday, July 31st. BTIG Research initiated coverage on NMI in a research note on Tuesday, September 22nd. They issued a "buy" rating and a $54.00 target price on the stock. Finally, Royal Bank Of Canada restated an "outperform" rating and set a $53.00 price target on shares of NMI in a report on Tuesday, August 4th. Five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $48.43.

NMI Trading Up 2.5%

The firm's 50 day moving average price is $42.32 and its 200-day moving average price is $40.22. The stock has a market cap of $3.25 billion, a P/E ratio of 8.50, a P/E/G ratio of 1.38 and a beta of 0.56. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.65 and a quick ratio of 0.65.

NMI (NASDAQ:NMIH - Get Free Report) last posted its quarterly 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. The firm had revenue of $187.89 million for the quarter, compared to analysts' expectations of $156.26 million. NMI had a net margin of 54.10% and a return on equity of 15.13%. The business's revenue for the quarter was up 8.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.22 earnings per share. As a group, equities research analysts forecast that NMI Holdings Inc will post 5.26 earnings per share for the current year.

Insider Activity at NMI

In other NMI news, EVP Robert Smith sold 12,000 shares of NMI stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $44.65, for a total value of $535,800.00. Following the completion of the sale, the executive vice president owned 96,381 shares of the company's stock, valued at approximately $4,303,411.65. This trade represents a 11.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Adam Pollitzer sold 172,706 shares of NMI stock in a transaction on Friday, September 4th. The stock was sold at an average price of $44.85, for a total value of $7,745,864.10. Following the completion of the sale, the chief executive officer directly owned 270,267 shares of the company's stock, valued at approximately $12,121,474.95. The trade was a 38.99% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 196,368 shares of company stock valued at $8,800,740. 2.44% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On NMI

Institutional investors have recently modified their holdings of the business. Dimensional Fund Advisors LP boosted its holdings in NMI by 0.8% in the first quarter. Dimensional Fund Advisors LP now owns 4,351,808 shares of the financial services provider's stock worth $163,237,000 after purchasing an additional 34,372 shares during the last quarter. Bank of America Corp DE raised its stake in NMI by 22.7% during the 1st quarter. Bank of America Corp DE now owns 1,304,633 shares of the financial services provider's stock valued at $48,937,000 after buying an additional 241,724 shares during the last quarter. Donald Smith & CO. Inc. purchased a new stake in NMI during the 2nd quarter valued at $36,262,000. Bank of New York Mellon Corp purchased a new stake in NMI during the 2nd quarter valued at $20,919,000. Finally, Winmill & CO. Inc. bought a new position in shares of NMI during the 2nd quarter valued at $16,276,000. 94.12% of the stock is owned by hedge funds and other institutional investors.

About NMI

NMI Holdings, Inc NASDAQ: NMIH is the parent company of National MI, a U.S.-based provider of private mortgage insurance. Through its insurance subsidiaries, the company helps lenders manage the risk associated with residential mortgage loans, particularly loans made to borrowers with down payments below traditional thresholds.

National MI primarily offers private mortgage insurance for residential purchase and refinance transactions. Its products are designed for mortgage lenders, banks, credit unions and other housing-finance institutions, helping them expand access to homeownership while transferring a portion of potential credit risk.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.