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

NMI Holdings Inc (NASDAQ:NMIH) gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. 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 traded.

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

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on NMIH shares. Royal Bank Of Canada restated an “outperform” rating and set a $53.00 target price on shares of NMI in a research report on Tuesday, August 4th. BTIG Research began coverage on shares of NMI in a research report on Tuesday, September 22nd. They issued a “buy” rating and a $54.00 price target on the stock. Truist Financial raised their price objective on shares of NMI from $49.00 to $51.00 and gave the stock 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 research report on Tuesday. Finally, Keefe, Bruyette & Woods downgraded NMI from an “outperform” rating to a “market perform” rating and set a $47.00 price objective for the company. in a research report on Monday, August 3rd. Five investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, NMI has a consensus rating of “Moderate Buy” and a consensus price target of $47.88.

Insiders Place Their Bets

In other news, EVP Aurora Swithenbank sold 11,662 shares of the stock in a transaction 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 completion of the sale, the executive vice president owned 50,734 shares of the company’s stock, valued at $2,258,170.34. This represents a 18.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Adam Pollitzer sold 172,706 shares of the firm’s stock in a transaction dated 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 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 company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Dimensional Fund Advisors LP lifted its holdings in NMI by 0.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,351,808 shares of the financial services provider’s stock worth $163,237,000 after buying an additional 34,372 shares in the last quarter. Bank of America Corp DE lifted its holdings in NMI by 22.7% during the 1st quarter. Bank of America Corp DE now owns 1,304,633 shares of the financial services provider’s stock worth $48,937,000 after buying an additional 241,724 shares during the last quarter. Donald Smith & CO. Inc. acquired a new position in shares of NMI in the 2nd quarter worth approximately $36,262,000. Bank of New York Mellon Corp acquired a new position in shares of NMI in the 2nd quarter worth approximately $20,919,000. Finally, Winmill & CO. Inc. bought a new stake in shares of NMI in the 2nd quarter valued at approximately $16,276,000. 94.12% of the stock is owned by institutional investors and hedge funds.

NMI Stock Down 11.4%

The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.65 and a current ratio of 0.65. The firm has a market capitalization of $2.95 billion, a P/E ratio of 7.74, a P/E/G ratio of 1.44 and a beta of 0.52. The stock has a fifty day moving average price of $42.14 and a two-hundred day moving average price of $40.36.

About NMI

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.