NMI (NASDAQ:NMIH) Stock Price Breaks Below 200-Day Moving Average After Earnings Miss

NMI Holdings Inc (NASDAQ:NMIH)’s share price crossed below its 200-day moving average during trading on Friday after the company announced weaker than expected quarterly earnings. The stock has a 200-day moving average of $40.37 and traded as low as $36.47. NMI shares last traded at $39.03, with a volume of 1,948,240 shares changing hands.

The financial services provider reported $1.23 earnings per share for the quarter, missing the consensus estimate of $1.30 by ($0.07). The company had revenue of $187.55 million during the quarter, compared to analyst estimates of $159.20 million. NMI had a net margin of 54.10% and a return on equity of 15.13%. During the same quarter last year, the business posted $1.21 EPS.

Key Headlines Impacting NMI

Here are the key news stories impacting NMI this week:

• Positive Sentiment: Portfolio growth and stronger investment income provided some support, helping offset pressure from claims and expenses. NMIH Q3 Earnings Miss Estimates on Higher Claims and Costs
• Neutral Sentiment: EPS was $1.23, slightly above the $1.21 reported a year earlier, though it fell short of analyst expectations. NMI Holdings Q3 Earnings and Revenues Lag Estimates
• Negative Sentiment: Quarterly earnings missed consensus as higher claims and costs weighed on results—an important concern for investors despite business growth. NMIH Q3 Earnings Miss Estimates on Higher Claims and Costs
• Negative Sentiment: Barclays cut its price target from $43 to $42 and maintained an “equal weight” rating, signaling limited conviction in near-term upside. Barclays stock recommendations

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on NMIH shares. JPMorgan Chase & Co. cut their price target on NMI from $50.00 to $45.00 and set an “overweight” rating for the company in a report on Monday, October 12th. Keefe, Bruyette & Woods cut NMI from an “outperform” rating to a “market perform” rating and set a $47.00 target price on the stock. in a report on Monday, August 3rd. Weiss Ratings cut shares of NMI from a “buy (b+)” rating to a “buy (b)” rating in a research report on Tuesday. Royal Bank Of Canada reissued an “outperform” rating and issued a $53.00 price objective on shares of NMI in a research report on Tuesday, August 4th. Finally, BTIG Research started coverage on shares of NMI in a report on Tuesday, September 22nd. They set a “buy” rating and a $54.00 price objective for the company. Five investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $47.75.

Insiders Place Their Bets

In other news, EVP Aurora Swithenbank sold 11,662 shares of the company’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $44.51, for a total transaction of $519,075.62. Following the completion of the transaction, the executive vice president directly owned 50,734 shares in the company, valued at $2,258,170.34. The trade was a 18.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Adam Pollitzer sold 172,706 shares of the firm’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $44.85, for a total transaction of $7,745,864.10. Following the completion of the sale, the chief executive officer owned 270,267 shares in the company, valued at $12,121,474.95. This represents a 38.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 2.44% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On NMI

A number of large investors have recently bought and sold shares of NMIH. Dimensional Fund Advisors LP boosted its position in shares of NMI by 0.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 4,351,808 shares of the financial services provider’s stock worth $163,237,000 after purchasing an additional 34,372 shares in the last quarter. Bank of America Corp DE grew its position in NMI by 22.7% during the first quarter. Bank of America Corp DE now owns 1,304,633 shares of the financial services provider’s stock valued at $48,937,000 after buying an additional 241,724 shares during the period. Donald Smith & CO. Inc. bought a new position in NMI during the second quarter valued at $36,262,000. Bank of New York Mellon Corp purchased a new position in shares of NMI in the second quarter worth about $20,919,000. Finally, Winmill & CO. Inc. purchased a new position in shares of NMI in the second quarter valued at $16,276,000. 94.12% of the stock is currently owned by institutional investors.

NMI Stock Down 11.8%

The firm has a market cap of $2.94 billion, a P/E ratio of 7.67, a price-to-earnings-growth ratio of 1.42 and a beta of 0.52. The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 0.15. The stock’s fifty day moving average is $42.02 and its two-hundred day moving average is $40.37.

About NMI

NMI Holdings, Inc (NASDAQ: NMIH) is the parent company of National MI, a U.S.-based provider of private mortgage insurance. Through its insurance subsidiaries, the company helps lenders manage the risk associated with residential mortgage loans, particularly loans made to borrowers with down payments below traditional thresholds.

National MI primarily offers private mortgage insurance for residential purchase and refinance transactions. Its products are designed for mortgage lenders, banks, credit unions and other housing-finance institutions, helping them expand access to homeownership while transferring a portion of potential credit risk.