NMI Holdings, Inc. (NASDAQ:NMIH) released its quarterly earnings report on October 8, 2023, achieving earnings per share of $1.21, which aligns with analysts’ expectations. Despite meeting earnings forecasts, the company reported revenue of $151.32 million, falling short of the anticipated $177.01 million, according to Zacks. This quarter’s financial performance reflects a 7.6% increase in revenue compared to the same period last year, when the company posted earnings of $1.15 per share.
Despite the positive growth year-over-year, NMI’s stock price experienced a decline of 1.7% on October 10, 2023, trading at $36.21 during mid-day sessions. Approximately 299,690 shares changed hands, notably below the average volume of 520,458. The company’s market capitalization stands at $2.81 billion, with a price-to-earnings (P/E) ratio of 7.58 and a beta of 0.63.
NMI also maintains a return on equity of 16.42% and a net margin of 55.02%. The company has a current ratio of 0.74, a quick ratio of 0.74, and a debt-to-equity ratio of 0.17. Over the past year, the stock has fluctuated between a low of $31.90 and a high of $43.20. The 50-day moving average price is currently $37.78, while the 200-day moving average price is $38.41.
Insider Transactions and Analyst Ratings
In related news, Director Steven Scheid sold 19,926 shares of NMI stock on September 15, 2023, at an average price of $39.31. This transaction totaled approximately $783,291.06. Following the sale, Scheid holds 78,960 shares, valued at about $3,103,917.60, marking a 20.15% reduction in his ownership. The sale was detailed in a filing with the Securities and Exchange Commission.
Currently, insider ownership comprises 3.00% of the stock. Analysts have mixed views on NMI; Wall Street Zen downgraded the stock from a “buy” to a “hold” rating on July 12, 2023. Conversely, Weiss Ratings reaffirmed a “buy (b)” rating, while Barclays maintained a “cautious” stance. JPMorgan Chase & Co. lowered its target price from $43.00 to $42.00 but retained an “overweight” rating.
As of the latest data, four research analysts have given NMI a “Buy” rating, while three others have rated it as a “Hold.” The stock currently holds a consensus rating of “Moderate Buy” with an average target price of $42.17, according to MarketBeat.com.
About NMI Holdings, Inc.
NMI Holdings, Inc. specializes in providing private mortgage guaranty insurance services across the United States. The company offers a range of mortgage insurance products, including primary and pool insurance, as well as outsourced loan review services to various mortgage loan originators. Its clientele encompasses national and regional mortgage banks, credit unions, community banks, and internet-sourced lenders.
As NMI navigates the complexities of the financial services market, its performance continues to draw attention from investors and analysts alike, reflecting the ongoing dynamics of the mortgage insurance sector.
