NMI (NASDAQ:NMIH) Shares Gap Up After Strong Earnings

NMI Holdings, Inc. (NASDAQ:NMIH)’s stock price gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $33.64, but opened at $35.11. NMI shares last traded at $35.44, with a volume of 107,782 shares.

The financial services provider reported $1.28 EPS for the quarter, topping the consensus estimate of $1.10 by $0.18. NMI had a return on equity of 17.33% and a net margin of 55.32%. The business had revenue of $173.25 million during the quarter, compared to the consensus estimate of $169.04 million. During the same quarter last year, the company earned $1.08 EPS. The firm’s revenue was up 10.8% compared to the same quarter last year.

Analyst Ratings Changes

Several brokerages have commented on NMIH. UBS Group cut their target price on NMI from $42.00 to $41.00 and set a “neutral” rating for the company in a research note on Wednesday, February 19th. Barclays downgraded NMI from an “overweight” rating to an “equal weight” rating and cut their target price for the stock from $48.00 to $41.00 in a research note on Monday, January 6th. Keefe, Bruyette & Woods cut their target price on NMI from $43.00 to $42.00 and set an “outperform” rating for the company in a research note on Tuesday, April 8th. Finally, JPMorgan Chase & Co. lowered their price target on NMI from $42.00 to $41.00 and set an “overweight” rating on the stock in a report on Tuesday, April 8th. Three equities research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. According to MarketBeat, NMI has a consensus rating of “Moderate Buy” and an average target price of $42.14.

Insider Buying and Selling at NMI

In related news, EVP Mohammad Nawaz Yousaf sold 1,083 shares of the firm’s stock in a transaction dated Friday, February 21st. The stock was sold at an average price of $35.44, for a total transaction of $38,381.52. Following the transaction, the executive vice president now directly owns 49,218 shares of the company’s stock, valued at approximately $1,744,285.92. This trade represents a 2.15 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Norman Peter Fitzgerald sold 20,000 shares of the firm’s stock in a transaction dated Monday, February 24th. The shares were sold at an average price of $35.88, for a total value of $717,600.00. Following the transaction, the executive vice president now directly owns 37,470 shares in the company, valued at approximately $1,344,423.60. This represents a 34.80 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 3.00% of the company’s stock.

Hedge Funds Weigh In On NMI

A number of large investors have recently modified their holdings of the company. MQS Management LLC purchased a new position in shares of NMI during the 1st quarter valued at about $247,000. CWM LLC raised its holdings in shares of NMI by 145.5% during the 1st quarter. CWM LLC now owns 11,167 shares of the financial services provider’s stock valued at $403,000 after buying an additional 6,618 shares in the last quarter. New York State Common Retirement Fund increased its stake in NMI by 6.0% in the 1st quarter. New York State Common Retirement Fund now owns 79,513 shares of the financial services provider’s stock worth $2,866,000 after purchasing an additional 4,500 shares during the period. Xponance Inc. increased its stake in NMI by 5.0% in the 1st quarter. Xponance Inc. now owns 5,917 shares of the financial services provider’s stock worth $213,000 after purchasing an additional 281 shares during the period. Finally, Cerity Partners LLC increased its stake in NMI by 25.2% in the 1st quarter. Cerity Partners LLC now owns 30,869 shares of the financial services provider’s stock worth $1,113,000 after purchasing an additional 6,212 shares during the period. 94.12% of the stock is owned by hedge funds and other institutional investors.

NMI Stock Up 0.6 %

The company has a current ratio of 0.60, a quick ratio of 0.83 and a debt-to-equity ratio of 0.19. The stock has a 50 day simple moving average of $34.90 and a 200 day simple moving average of $36.80. The firm has a market capitalization of $2.85 billion, a PE ratio of 8.21, a PEG ratio of 1.41 and a beta of 0.62.

About NMI

NMI Holdings, Inc provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance services, such as primary and pool insurance; and outsourced loan review services to mortgage loan originators. It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders, and other non-bank lenders.