NMI (NASDAQ:NMIH) Rating Increased to Moderate Buy at Royal Bank Of Canada

Royal Bank Of Canada upgraded shares of NMI (NASDAQ:NMIH) to a moderate buy rating in a research report report published on Friday, MarketBeat Ratings reports. They currently have $46.00 price objective on the financial services provider’s stock.

Other analysts have also recently issued reports about the company. Weiss Ratings reiterated a “buy (b)” rating on shares of NMI in a research report on Thursday, January 22nd. UBS Group set a $46.00 target price on shares of NMI in a research note on Friday. JPMorgan Chase & Co. lowered their target price on shares of NMI from $44.00 to $43.00 and set an “overweight” rating on the stock in a report on Thursday, April 9th. Barclays dropped their target price on shares of NMI from $44.00 to $43.00 and set an “equal weight” rating for the company in a research report on Monday, April 6th. Finally, Keefe, Bruyette & Woods cut their price target on shares of NMI from $50.00 to $46.00 and set an “outperform” rating for the company in a report on Monday, May 4th. Four research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $44.80.

NMI Stock Down 1.0%

Shares of NMIH opened at $37.40 on Friday. 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 company has a 50-day moving average price of $38.37 and a two-hundred day moving average price of $38.76. The stock has a market cap of $2.84 billion, a price-to-earnings ratio of 7.62, a P/E/G ratio of 1.30 and a beta of 0.59. NMI has a 12 month low of $34.84 and a 12 month high of $43.20.

NMI (NASDAQ:NMIH) last released its quarterly earnings data on Thursday, April 30th. The financial services provider reported $1.28 earnings per share for the quarter, beating the consensus estimate of $1.22 by $0.06. NMI had a return on equity of 15.18% and a net margin of 53.82%.The company had revenue of $183.48 million for the quarter, compared to analyst estimates of $153.99 million. During the same period in the prior year, the company posted $1.28 EPS. The company’s revenue was up 5.9% compared to the same quarter last year. Equities analysts predict that NMI will post 5.15 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Chairman Bradley M. Shuster sold 19,557 shares of the firm’s stock in a transaction on Thursday, February 26th. The stock was sold at an average price of $39.85, for a total value of $779,346.45. Following the completion of the sale, the chairman directly owned 415,411 shares in the company, valued at approximately $16,554,128.35. This trade represents a 4.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Michael Curry Montgomery sold 1,554 shares of NMI stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $37.90, for a total value of $58,896.60. Following the completion of the transaction, the director directly owned 69,026 shares of the company’s stock, valued at $2,616,085.40. This represents a 2.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 97,466 shares of company stock worth $3,700,103. Insiders own 2.44% of the company’s stock.

Institutional Investors Weigh In On NMI

Several hedge funds and other institutional investors have recently added to or reduced their stakes in NMIH. Public Sector Pension Investment Board increased its holdings in shares of NMI by 5.4% in the third quarter. Public Sector Pension Investment Board now owns 597,447 shares of the financial services provider’s stock valued at $22,906,000 after purchasing an additional 30,341 shares in the last quarter. Tudor Investment Corp ET AL lifted its holdings in NMI by 62.6% during the 3rd quarter. Tudor Investment Corp ET AL now owns 368,840 shares of the financial services provider’s stock worth $14,141,000 after buying an additional 142,065 shares in the last quarter. Y Intercept Hong Kong Ltd lifted its holdings in NMI by 219.9% during the 3rd quarter. Y Intercept Hong Kong Ltd now owns 86,824 shares of the financial services provider’s stock worth $3,329,000 after buying an additional 59,682 shares in the last quarter. Teacher Retirement System of Texas boosted its position in NMI by 22.9% in the 4th quarter. Teacher Retirement System of Texas now owns 187,189 shares of the financial services provider’s stock valued at $7,635,000 after buying an additional 34,907 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its stake in shares of NMI by 0.7% in the 3rd quarter. Dimensional Fund Advisors LP now owns 4,288,867 shares of the financial services provider’s stock valued at $164,437,000 after buying an additional 31,570 shares during the period. Institutional investors and hedge funds own 94.12% of the company’s stock.

Key Headlines Impacting NMI

Here are the key news stories impacting NMI this week:

• Positive Sentiment: Royal Bank of Canada upgraded NMI Holdings (NMIH) to “moderate buy”, reinforcing a constructive view on the stock. Zacks.com article
• Positive Sentiment: Zacks Research raised earnings estimates for several future periods, including FY2026 and some 2026-2027 quarters, signaling confidence in NMIH’s earnings power.
• Positive Sentiment: A Seeking Alpha article upgraded NMI Holdings to “buy”, arguing the recent share pullback has made the valuation more attractive at under 8x earnings and about 1.1x book value, while balance-sheet strength and buybacks remain supportive. Seeking Alpha article
• Neutral Sentiment: One insider transaction showed Director Michael Curry Montgomery sold 1,554 shares. The sale was relatively small versus his remaining stake, so it is not a major red flag on its own. Insider Trades article
• Neutral Sentiment: Analyst estimates remain mixed over longer horizons: some near-term forecasts were trimmed, even as other periods were nudged higher. This suggests earnings are still expected to moderate, but not deteriorate sharply.
• Negative Sentiment: Despite the positive analyst actions, the stock is still trading below recent levels and below both its 50-day and 200-day moving averages, showing that the market remains cautious about the company’s near-term outlook.

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.