NMI (NASDAQ:NMIH) Shares Gap Down Following Weak Earnings

Shares of NMI Holdings Inc (NASDAQ:NMIH) gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $44.27, but opened at $40.01. NMI shares last traded at $39.2130, with a volume of 155,668 shares trading hands.

The financial services provider reported $1.23 EPS for the quarter, missing analysts’ consensus estimates of $1.30 by ($0.07). NMI had a net margin of 54.10% and a return on equity of 15.13%. The business had revenue of $187.55 million for the quarter, compared to analyst estimates of $159.20 million. During the same quarter last year, the business earned $1.21 earnings per share.

Analysts Set New Price Targets

Several research firms recently commented on NMIH. Bank of America downgraded NMI from a “buy” rating to a “neutral” rating and reduced their price objective for the company from $51.00 to $44.00 in a research note on Friday, October 30th. JPMorgan Chase & Co. lowered their price objective on NMI from $50.00 to $45.00 and set an “overweight” rating for the company in a research report on Monday, October 12th. Truist Financial boosted their price target on shares of NMI from $49.00 to $51.00 and gave the company a “buy” rating in a research note on Friday, July 31st. Weiss Ratings downgraded NMI from a “buy (b+)” rating to a “buy (b)” rating in a report on Tuesday. Finally, Royal Bank Of Canada reissued an “outperform” rating and set a $53.00 target price on shares of NMI in a research note on Tuesday, August 4th. Five equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $47.88.

Insider Buying and Selling at NMI

In other NMI news, EVP Aurora Swithenbank sold 11,662 shares of the stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $44.51, for a total value of $519,075.62. Following the transaction, the executive vice president directly owned 50,734 shares in the company, valued at $2,258,170.34. This represents a 18.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Adam Pollitzer sold 172,706 shares of the stock in a transaction on Friday, September 4th. The shares were sold at an average price of $44.85, for a total transaction of $7,745,864.10. Following the completion of the transaction, the chief executive officer directly owned 270,267 shares in the company, valued at $12,121,474.95. This trade represents a 38.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 2.44% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Bessemer Group Inc. grew its position in NMI by 34.0% in the 1st quarter. Bessemer Group Inc. now owns 1,071 shares of the financial services provider’s stock valued at $40,000 after buying an additional 272 shares during the last quarter. Rockefeller Capital Management L.P. lifted its position in shares of NMI by 35.0% during the 4th quarter. Rockefeller Capital Management L.P. now owns 1,160 shares of the financial services provider’s stock valued at $47,000 after acquiring an additional 301 shares during the period. GAMMA Investing LLC increased its stake in NMI by 11.6% in the 2nd quarter. GAMMA Investing LLC now owns 2,989 shares of the financial services provider’s stock valued at $123,000 after purchasing an additional 310 shares in the last quarter. Pacer Advisors Inc. increased its stake in NMI by 58.7% in the 1st quarter. Pacer Advisors Inc. now owns 1,006 shares of the financial services provider’s stock valued at $38,000 after purchasing an additional 372 shares in the last quarter. Finally, Inspire Investing LLC raised its holdings in NMI by 2.6% during the third quarter. Inspire Investing LLC now owns 16,862 shares of the financial services provider’s stock worth $629,000 after purchasing an additional 425 shares during the last quarter. Institutional investors and hedge funds own 94.12% of the company’s stock.

NMI Stock Performance

The firm has a fifty day moving average of $42.14 and a 200-day moving average of $40.36. The stock has a market capitalization of $2.95 billion, a price-to-earnings ratio of 7.74, a PEG ratio of 1.44 and a beta of 0.52. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.15.

NMI Company Profile

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.