NMI Holdings, Inc. (NASDAQ:NMIH) released its quarterly earnings results on October 8, 2023, reporting earnings per share of $1.21, which aligns with the consensus estimate. The financial services provider generated revenue of $151.32 million for the quarter, falling short of analysts’ expectations of $177.01 million. Despite this, the company’s year-over-year revenue increased by 7.6%, reflecting a solid performance in a competitive market.
The reported return on equity for the quarter stood at 16.42%, with a net margin of 55.02%. In the same quarter last year, NMI reported earnings per share of $1.15, showcasing growth in profitability.
Stock Performance and Insider Activity
On the trading day following the earnings release, shares of NMI witnessed a decline of 1.7%, dropping $0.63 to $36.21 during midday trading. A total of 299,690 shares exchanged hands, which is below the average volume of 520,458 shares. Currently, the company boasts a market capitalization of $2.81 billion, a price-to-earnings ratio of 7.58, and a beta of 0.63. The stock has fluctuated between a 12-month low of $31.90 and a high of $43.20.
In related news, Director Steven Scheid sold 19,926 shares of NMI stock on September 15, 2023, at an average price of $39.31, totaling approximately $783,291.06. Following this transaction, Scheid retained 78,960 shares, valued at $3,103,917.60, reflecting a 20.15% decrease in his ownership stake. This sale was documented in a filing with the Securities and Exchange Commission.
Analyst Insights and Ratings
Recent commentary from equity research analysts has influenced perceptions of NMI. On July 12, Wall Street Zen revised its rating on NMI from “buy” to “hold.” Conversely, Weiss Ratings reaffirmed a “buy (b)” rating on October 8, while Barclays maintained a “cautious” stance regarding the stock. JPMorgan Chase & Co. adjusted its target price for NMI, lowering it from $43.00 to $42.00 while retaining an “overweight” rating.
Currently, four research analysts rate the stock as a “buy,” while three have assigned it a “hold” rating. According to data from MarketBeat.com, NMI has a consensus rating of “Moderate Buy” and an average target price of $42.17.
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, along with outsourced loan review services targeted at various mortgage lenders, including regional banks and non-bank lenders.
