NMI (NASDAQ:NMIH) Issues Earnings Results, Beats Estimates By $0.10 EPS

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

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 up $0.77 during midday trading on Friday, reaching $44.20. The company’s stock had a trading volume of 507,607 shares, compared to its average volume of 517,069. The stock has a market capitalization of $3.36 billion, a P/E ratio of 8.99, a PEG ratio of 1.54 and a beta of 0.54. The company has a debt-to-equity ratio of 0.16, a current ratio of 0.63 and a quick ratio of 0.63. The firm has a 50 day moving average price of $39.48 and a 200-day moving average price of $38.95. NMI has a 12-month low of $34.84 and a 12-month high of $46.74.

Analysts Set New Price Targets

NMIH has been the topic of a number of analyst reports. Barclays lowered their target price on shares of NMI from $44.00 to $43.00 and set an “equal weight” rating on the stock in a report on Monday, April 6th. JPMorgan Chase & Co. boosted their price objective on NMI from $48.00 to $50.00 and gave the stock an “overweight” rating in a report on Friday. UBS Group set a $46.00 price objective on NMI in a research note on Friday, May 22nd. Truist Financial lifted their target price on NMI from $49.00 to $51.00 and gave the company a “buy” rating in a research report on Friday. Finally, Weiss Ratings upgraded NMI from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, June 12th. Five analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $47.17.

Insider Activity at NMI

In other news, Director Michael Curry Montgomery sold 1,554 shares of the firm’s stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $37.90, for a total transaction of $58,896.60. Following the completion of the sale, the director directly owned 69,026 shares of the company’s stock, valued at $2,616,085.40. This trade represents a 2.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 2.44% of the company’s stock.

Hedge Funds Weigh In On NMI

Institutional investors have recently added to or reduced their stakes in the stock. Cetera Investment Advisers raised its position in NMI by 7.8% in the fourth quarter. Cetera Investment Advisers now owns 11,715 shares of the financial services provider’s stock worth $478,000 after acquiring an additional 844 shares during the period. Entropy Technologies LP grew its position in shares of NMI by 95.2% during the 4th quarter. Entropy Technologies LP now owns 11,700 shares of the financial services provider’s stock valued at $477,000 after acquiring an additional 5,705 shares during the period. Keebeck Wealth Management increased its stake in shares of NMI by 16.8% during the 3rd quarter. Keebeck Wealth Management now owns 12,451 shares of the financial services provider’s stock worth $477,000 after purchasing an additional 1,791 shares during the last quarter. Tower Research Capital LLC TRC increased its stake in shares of NMI by 151.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 11,261 shares of the financial services provider’s stock worth $475,000 after purchasing an additional 6,784 shares during the last quarter. Finally, EP Wealth Advisors LLC bought a new stake in shares of NMI in the 4th quarter worth approximately $417,000. Institutional investors own 94.12% of the company’s stock.

Key NMI News

Here are the key news stories impacting NMI this week:

• Positive Sentiment: Truist raised its price target on NMI Holdings from $49 to $51 and upgraded the stock to “Buy,” implying approximately 15.7% upside from the referenced share price. Benzinga report
• Positive Sentiment: NMI Holdings reported second-quarter net income of $105.8 million, or $1.38 per diluted share, compared with $96.2 million, or $1.21 per share, a year earlier. Earnings exceeded the $1.28 analyst consensus. NMI Holdings second-quarter financial results
• Positive Sentiment: Revenue reached $187.89 million, up 8.1% year over year and well above the approximately $156.26 million consensus estimate. The company also reported a 53.82% net margin and 15.18% return on equity. NMI Holdings earnings and revenue report
• Positive Sentiment: Management highlighted continued capital-return capacity, including $167 million remaining under its share-repurchase authorization, which may support per-share results and investor confidence. NMIH capital return update
• Neutral Sentiment: The shares remain below their 52-week high but are trading above both their 50-day and 200-day moving averages, indicating improved momentum following the earnings beat.
• Negative Sentiment: Management expects defaults to trend higher, a potential risk to future mortgage-insurance claims and profitability despite the strong current-quarter performance. NMIH default outlook and capital return update

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.