NMI (NASDAQ:NMIH) Shares Down 6% – Should You Sell?

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

Wall Street Analysts Forecast Growth

NMIH has been the topic of a number of research reports. Weiss Ratings reiterated a “buy (b)” rating on shares of NMI in a report on Wednesday, September 9th. Keefe, Bruyette & Woods reiterated a “market perform” rating and issued a $47.00 target price on shares of NMI in a research report on Monday, August 3rd. Truist Financial increased their price target on NMI from $49.00 to $51.00 and gave the company a “buy” rating in a research note on Friday, July 31st. JPMorgan Chase & Co. raised their price target on NMI from $48.00 to $50.00 and gave the company an “overweight” rating in a report on Friday, July 31st. Finally, BTIG Research initiated coverage on NMI in a research note on Tuesday, September 22nd. They issued a “buy” rating and a $54.00 price objective on the stock. Five equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, NMI has an average rating of “Moderate Buy” and a consensus target price of $49.14.

NMI Stock Performance

The business’s fifty day moving average price is $43.97 and its two-hundred day moving average price is $40.51. 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 stock has a market capitalization of $2.88 billion, a P/E ratio of 7.56, a P/E/G ratio of 1.10 and a beta of 0.53.

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

Insider Activity

In related news, EVP Robert Smith sold 12,000 shares of the stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $44.65, for a total transaction of $535,800.00. Following the sale, the executive vice president owned 96,381 shares in the company, valued at approximately $4,303,411.65. This represents a 11.07% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Aurora Swithenbank sold 11,662 shares of the firm’s stock in a transaction on Tuesday, August 11th. The stock was 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 approximately $2,258,170.34. This represents a 18.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 196,368 shares of company stock valued at $8,800,740. 2.44% of the stock is currently owned by insiders.

Institutional Trading of NMI

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NMIH. Nykredit A S bought a new stake in shares of NMI during the 2nd quarter worth approximately $31,000. IFP Advisors Inc boosted its stake in shares of NMI by 189.5% during the fourth quarter. IFP Advisors Inc now owns 796 shares of the financial services provider’s stock valued at $32,000 after purchasing an additional 521 shares during the period. Public Employees Retirement System of Ohio purchased a new stake in shares of NMI during the second quarter valued at $36,000. Pacer Advisors Inc. grew its holdings in shares of NMI by 58.7% in the first quarter. Pacer Advisors Inc. now owns 1,006 shares of the financial services provider’s stock worth $38,000 after purchasing an additional 372 shares during the last quarter. Finally, Bessemer Group Inc. increased its stake in NMI by 34.0% in the 1st quarter. Bessemer Group Inc. now owns 1,071 shares of the financial services provider’s stock worth $40,000 after buying an additional 272 shares during the period. 94.12% of the stock is owned by hedge funds and other institutional investors.

About NMI

NMI Holdings, Inc (NASDAQ: NMIH) is the parent company of National MI, a provider of private mortgage insurance in the United States. Through its insurance subsidiaries, the company offers mortgage insurance to lenders and other mortgage market participants, helping protect against losses when borrowers default on residential home loans.

National MI’s products support conventional residential mortgages, including borrower-paid and lender-paid mortgage insurance arrangements. Its coverage is generally used when a homebuyer makes a down payment of less than 20%, enabling lenders to extend mortgage credit while reducing their exposure to potential default-related losses.