NMI (NASDAQ:NMIH) Stock Price Down 6% – Here’s Why

Shares of NMI Holdings Inc (NASDAQ:NMIH) dropped 6% during trading on Wednesday. The stock traded as low as $38.52 and last traded at $38.2730. 356,569 shares traded hands during trading, a decline of 31% from the average session volume of 516,059 shares. The stock had previously closed at $40.73.

Analysts Set New Price Targets

NMIH has been the topic of a number of research reports. Keefe, Bruyette & Woods reiterated a “market perform” rating and set a $47.00 price target on shares of NMI in a research report on Monday, August 3rd. BTIG Research initiated coverage on NMI in a research report on Tuesday, September 22nd. They issued a “buy” rating and a $54.00 target price for the company. JPMorgan Chase & Co. lifted their price target on shares of NMI from $48.00 to $50.00 and gave the stock an “overweight” rating in a research report on Friday, July 31st. Royal Bank Of Canada restated an “outperform” rating and set a $53.00 price objective on shares of NMI in a report on Tuesday, August 4th. Finally, Truist Financial lifted their price target on NMI from $49.00 to $51.00 and gave the company a “buy” rating in a report on Friday, July 31st. Five research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, NMI has an average rating of “Moderate Buy” and an average target price of $49.14.

NMI Stock Performance

The stock has a fifty day moving average price of $43.81 and a 200 day moving average price of $40.52. The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 0.15. The firm has a market cap of $2.86 billion, a price-to-earnings ratio of 7.50, a price-to-earnings-growth ratio of 1.00 and a beta of 0.56.

NMI (NASDAQ:NMIH) last announced its earnings results on Thursday, July 30th. The financial services provider reported $1.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.28 by $0.10. NMI had a return on equity of 15.13% and a net margin of 54.10%.The firm had revenue of $187.89 million during the quarter, compared to analysts’ expectations of $156.26 million. During the same quarter in the prior year, the business earned $1.22 earnings per share. The company’s revenue was up 8.1% on a year-over-year basis. As a group, analysts predict that NMI Holdings Inc will post 5.25 earnings per share for the current year.

Insider Activity at NMI

In related news, CEO Adam Pollitzer sold 172,706 shares of NMI stock in a transaction on Friday, September 4th. The shares were sold at an average price of $44.85, for a total value of $7,745,864.10. Following the transaction, the chief executive officer owned 270,267 shares in the company, valued at $12,121,474.95. This trade represents a 38.99% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Aurora Swithenbank sold 11,662 shares of the company’s stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $44.51, for a total transaction of $519,075.62. Following the sale, the executive vice president owned 50,734 shares of the company’s stock, valued at $2,258,170.34. This trade represents a 18.69% decrease in their ownership of the stock. 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 worth $8,800,740. 2.44% of the stock is owned by insiders.

Institutional Investors Weigh In On NMI

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Nykredit A S acquired a new stake in NMI in the 2nd quarter worth $31,000. Public Employees Retirement System of Ohio acquired a new stake in NMI during the second quarter worth about $36,000. Pacer Advisors Inc. increased its stake in NMI by 58.7% during the first quarter. Pacer Advisors Inc. now owns 1,006 shares of the financial services provider’s stock valued at $38,000 after acquiring an additional 372 shares during the period. Bessemer Group Inc. increased its stake in NMI by 34.0% during the first quarter. Bessemer Group Inc. now owns 1,071 shares of the financial services provider’s stock valued at $40,000 after acquiring an additional 272 shares during the period. Finally, Rockefeller Capital Management L.P. raised its holdings in NMI by 35.0% in 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 in the last quarter. Institutional investors and hedge funds own 94.12% of the company’s stock.

NMI Company Profile

NMI Holdings, Inc (NASDAQ:NMIH) is a holding company whose principal operating subsidiary, National MI, provides private mortgage insurance in the United States. Mortgage insurance helps protect lenders and investors against losses when borrowers default on residential mortgage loans, enabling qualified borrowers to purchase homes with down payments below traditional requirements.

National MI primarily offers mortgage insurance for residential first-lien mortgages, including borrower-paid and lender-paid coverage.