NMI (NASDAQ:NMIH) Posts Quarterly Earnings Results, Beats Expectations By $0.10 EPS

NMI (NASDAQ:NMIH) announced its quarterly earnings data on Thursday. The financial services provider reported $1.38 earnings per share for the quarter, beating analysts’ consensus estimates of $1.28 by $0.10, FiscalAI reports. NMI had a net margin of 53.82% and a return on equity of 15.18%. The firm had revenue of $187.89 million for the quarter, compared to analyst estimates of $156.26 million. During the same period in the previous year, the company earned $1.22 earnings per share. The business’s quarterly revenue was up 8.1% compared to the same quarter last year.

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

• Record second-quarter results included $187.9 million of revenue, $106 million of adjusted net income, and adjusted diluted EPS of $1.38, with net income up 7% sequentially and 10% year over year.
• New insurance written totaled $16 billion, lifting primary insurance in force to a record $227.1 billion; management also highlighted continued market-share momentum and a 49% increase in its insured portfolio over four years.
• Credit performance remained strong, with defaults declining slightly to 8,020 and a 1.16% default rate, while favorable prior-year reserve development continued. Management cited resilient employment, home-price appreciation, and borrower home equity as supports for credit quality.
• National MI repurchased $31.4 million of stock during the quarter and has $167 million remaining under its authorization; excess available assets under PMIERs totaled $1.6 billion, supporting future capital flexibility.
• Management expects defaults to trend higher in the second half as seasonal tailwinds fade and noted regional housing pressure in Florida, Texas, parts of the Sun Belt, Mountain West, and West Coast. It also flagged greater competitive pressure in large, transactionally oriented business.

NMI Stock Performance

Shares of NASDAQ:NMIH traded down $0.90 during midday trading on Thursday, reaching $43.44. The company’s stock had a trading volume of 448,645 shares, compared to its average volume of 425,140. The company has a quick ratio of 0.63, a current ratio of 0.63 and a debt-to-equity ratio of 0.16. The stock has a fifty day moving average of $39.48 and a 200 day moving average of $38.95. NMI has a twelve month low of $34.84 and a twelve month high of $44.74. The firm has a market capitalization of $3.30 billion, a PE ratio of 8.85, a P/E/G ratio of 1.54 and a beta of 0.54.

Analysts Set New Price Targets

NMIH has been the subject of a number of research analyst reports. Barclays reduced their target price on NMI from $44.00 to $43.00 and set an “equal weight” rating for the company in a research note on Monday, April 6th. Weiss Ratings upgraded NMI from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, June 12th. Royal Bank Of Canada started coverage on NMI in a report on Friday, May 22nd. They issued an “outperform” rating and a $46.00 price objective on the stock. JPMorgan Chase & Co. raised their price objective on NMI from $43.00 to $48.00 and gave the stock an “overweight” rating in a research note on Monday, July 13th. Finally, Keefe, Bruyette & Woods lifted their target price on NMI from $46.00 to $47.00 and gave the stock an “outperform” rating in a report on Thursday, June 25th. Four research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $46.00.

Insider Transactions at NMI

In related news, Director Michael Curry Montgomery sold 1,554 shares of the business’s stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $37.90, for a total transaction of $58,896.60. Following the completion of the transaction, the director directly owned 69,026 shares in the company, valued at $2,616,085.40. The trade was a 2.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 2.44% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On NMI

A number of institutional investors have recently modified their holdings of NMIH. California State Teachers Retirement System lifted its holdings in shares of NMI by 0.5% in the 2nd quarter. California State Teachers Retirement System now owns 70,112 shares of the financial services provider’s stock valued at $2,958,000 after buying an additional 328 shares during the period. Royal Bank of Canada grew its holdings in NMI by 0.3% during the fourth quarter. Royal Bank of Canada now owns 111,334 shares of the financial services provider’s stock worth $4,541,000 after acquiring an additional 348 shares during the period. Illinois Municipal Retirement Fund grew its holdings in NMI by 0.9% during the fourth quarter. Illinois Municipal Retirement Fund now owns 40,830 shares of the financial services provider’s stock worth $1,665,000 after acquiring an additional 372 shares during the period. EP Wealth Advisors LLC raised its position in NMI by 4.3% during the second quarter. EP Wealth Advisors LLC now owns 9,836 shares of the financial services provider’s stock valued at $415,000 after acquiring an additional 408 shares in the last quarter. Finally, Neuberger Berman Group LLC raised its position in NMI by 5.6% during the fourth quarter. Neuberger Berman Group LLC now owns 7,954 shares of the financial services provider’s stock valued at $324,000 after acquiring an additional 421 shares in the last quarter. Hedge funds and other institutional investors own 94.12% of the company’s stock.

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.