NMI Holdings, Inc. (NASDAQ:NMIH) released its quarterly earnings results on October 8, 2023, reporting earnings per share of $1.21. This figure aligns with analysts’ expectations, as detailed by Zacks. The financial services provider generated revenue of $151.32 million for the quarter, falling short of the anticipated $177.01 million forecast.
The company demonstrated a year-over-year revenue increase of 7.6%. In the same quarter last year, NMI reported earnings per share of $1.15. The financial health of the company is reflected in its return on equity, which stands at 16.42%, alongside a net margin of 55.02%.
Market Reaction and Stock Performance
Following the earnings announcement, shares of NMI traded down 1.7%, declining by $0.63 to reach $36.21 during mid-day trading on Thursday. A total of 299,690 shares exchanged hands, compared to the average volume of 520,458. The company currently holds a market capitalization of $2.81 billion, with a price-to-earnings (P/E) ratio of 7.58 and a P/E growth (P/E/G) ratio of 1.08. The stock also has a beta of 0.63.
NMI’s stock has fluctuated over the past year, with a 12-month low of $31.90 and a high of $43.20. The 50-day moving average price is $37.78, while the 200-day moving average price stands at $38.41.
Insider Trading Activity and Analyst Ratings
In other developments, NMI’s Director, Steven Scheid, sold 19,926 shares of stock on September 15, 2023, at an average price of $39.31, amounting to a total transaction of $783,291.06. After this transaction, Scheid retains ownership of 78,960 shares, valued at approximately $3,103,917.60, representing a 20.15% decrease in his stake. This transaction was disclosed in a filing with the Securities and Exchange Commission.
Currently, insiders own 3.00% of the company’s stock. Recently, various equities research analysts have provided their assessments of NMI. Wall Street Zen downgraded the stock from a “buy” to a “hold” rating on July 12, 2023. Conversely, Weiss Ratings maintained a “buy (b)” rating on October 8, 2023. Barclays reiterated a “cautious” rating, while JPMorgan Chase & Co. reduced their target price from $43.00 to $42.00, maintaining an “overweight” rating.
Four analysts currently rate NMI as a Buy, while three have issued a Hold rating, leading to a consensus rating of “Moderate Buy” with an average target price of $42.17, according to data from MarketBeat.com.
NMI Holdings, Inc. provides private mortgage guaranty insurance services across the United States, catering to a diverse clientele, including national and regional mortgage banks, credit unions, and non-bank lenders. The company offers a range of mortgage insurance services, including primary and pool insurance, as well as outsourced loan review services for mortgage loan originators.
In summary, NMI’s latest quarterly earnings report reflects a stable performance amid market fluctuations, while analyst ratings suggest a cautious outlook moving forward.
