NMI (NASDAQ:NMIH) Releases Quarterly Earnings Results, Misses Estimates By $0.07 EPS

NMI (NASDAQ:NMIH) issued its quarterly earnings data on Thursday. The financial services provider reported $1.23 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.30 by ($0.07), FiscalAI reports. The business had revenue of $187.55 million for the quarter, compared to analyst estimates of $159.20 million. NMI had a return on equity of 15.13% and a net margin of 54.10%. During the same period in the previous year, the business posted $1.21 earnings per share.

Here are the key takeaways from NMI’s conference call:

• National MI generated $13.6 billion of new insurance written and ended the quarter with record insurance-in-force of $229.7 billion. Revenue was $187.5 million, while adjusted net income was $93.7 million, or $1.23 per diluted share.
• New quota-share and excess-of-loss reinsurance treaties provide forward-flow coverage for business written through 2030 at an estimated 4% pre-tax cost of capital. Management said the deals strengthen credit-risk protection and capital planning, but do not directly change gross-line pricing.
• Defaults increased to 8,571 from 8,020 in the prior quarter, and claims expense rose to $29.1 million from $13.1 million. Management attributed the increase to normal seasonality and portfolio growth and seasoning, while describing credit trends as in line with expectations.
• The company repurchased $27.1 million of stock during the quarter and has $140 million of authorization remaining, but management expects buybacks to continue at roughly the recent pace rather than accelerate. It cited ongoing balance-sheet and growth opportunities as factors in balancing shareholder distributions.

NMI Stock Performance

Shares of NASDAQ NMIH opened at $39.03 on Friday. The company has a 50-day simple moving average of $42.02 and a 200-day simple moving average of $40.37. NMI has a 12 month low of $35.12 and a 12 month high of $46.74. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.65 and a quick ratio of 0.65. The company has a market cap of $2.94 billion, a PE ratio of 7.67, a price-to-earnings-growth ratio of 1.42 and a beta of 0.52.

NMI News Summary

Here are the key news stories impacting NMI this week:

• Positive Sentiment: Portfolio growth and stronger investment income provided some support, helping offset pressure from claims and expenses. NMIH Q3 Earnings Miss Estimates on Higher Claims and Costs
• Neutral Sentiment: EPS was $1.23, slightly above the $1.21 reported a year earlier, though it fell short of analyst expectations. NMI Holdings Q3 Earnings and Revenues Lag Estimates
• Negative Sentiment: Quarterly earnings missed consensus as higher claims and costs weighed on results—an important concern for investors despite business growth. NMIH Q3 Earnings Miss Estimates on Higher Claims and Costs
• Negative Sentiment: Barclays cut its price target from $43 to $42 and maintained an “equal weight” rating, signaling limited conviction in near-term upside. Barclays stock recommendations

Insider Buying and Selling at NMI

In other NMI news, EVP Aurora Swithenbank sold 11,662 shares of the business’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $44.51, for a total transaction of $519,075.62. Following the transaction, the executive vice president owned 50,734 shares of the company’s stock, valued at $2,258,170.34. The trade was a 18.69% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Adam Pollitzer sold 172,706 shares of the company’s stock in a transaction dated 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 transaction, 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. 2.44% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on NMIH. Royal Bank Of Canada reiterated an “outperform” rating and issued a $53.00 target price on shares of NMI in a research note on Tuesday, August 4th. Bank of America downgraded NMI from a “buy” rating to a “neutral” rating and decreased their price target for the company from $51.00 to $44.00 in a research note on Friday, October 30th. BTIG Research assumed coverage on shares of NMI in a research report on Tuesday, September 22nd. They set a “buy” rating and a $54.00 price objective for the company. Keefe, Bruyette & Woods cut NMI from an “outperform” rating to a “market perform” rating and set a $47.00 target price on the stock. in a report on Monday, August 3rd. Finally, Truist Financial increased their target price on NMI from $49.00 to $51.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Five investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $47.75.

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.