NMI (NASDAQ:NMIH) Stock Crosses Below 200-Day Moving Average on Disappointing Earnings

NMI Holdings Inc (NASDAQ:NMIH) passed below its two hundred day moving average during trading on Friday following a dissappointing earnings announcement. The stock has a two hundred 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 (EPS) for the quarter, missing the consensus estimate of $1.30 by ($0.07). The business had revenue of $187.55 million for the quarter, compared to analysts’ expectations of $159.20 million. NMI had a net margin of 54.10% and a return on equity of 15.13%. During the same quarter in the previous year, the business posted $1.21 earnings per share.

Key Stories 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 research analysts recently commented on the company. Keefe, Bruyette & Woods downgraded NMI from an “outperform” rating to a “market perform” rating and set a $47.00 target price on the stock. in a research report on Monday, August 3rd. JPMorgan Chase & Co. decreased their price target on shares of NMI from $50.00 to $45.00 and set an “overweight” rating for the company in a research report on Monday, October 12th. Barclays lowered their target price on shares of NMI from $43.00 to $42.00 and set an “equal weight” rating for the company in a research note on Friday. Weiss Ratings downgraded shares of NMI from a “buy (b+)” rating to a “buy (b)” rating in a report on Tuesday. Finally, Bank of America lowered shares of NMI from a “buy” rating to a “neutral” rating and dropped their price target for the company from $51.00 to $44.00 in a research report on Friday, October 30th. Five investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, NMI presently has an average rating of “Moderate Buy” and a consensus target price of $47.75.

Insider Activity

In related news, CEO Adam Pollitzer sold 172,706 shares of the company’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $44.85, for a total transaction of $7,745,864.10. Following the sale, the chief executive officer directly owned 270,267 shares of the company’s stock, valued at $12,121,474.95. This represents a 38.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Aurora Swithenbank sold 11,662 shares of NMI stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $44.51, for a total value of $519,075.62. Following the completion of the transaction, the executive vice president owned 50,734 shares of the company’s stock, valued at $2,258,170.34. The trade was a 18.69% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 2.44% of the company’s stock.

Institutional Investors Weigh In On NMI

Several institutional investors have recently added to or reduced their stakes in the business. Donald Smith & CO. Inc. purchased a new stake in NMI in the second quarter valued at $36,262,000. Bank of New York Mellon Corp acquired a new position in shares of NMI during the 2nd quarter worth $20,919,000. Winmill & CO. Inc. acquired a new stake in shares of NMI in the 2nd quarter worth approximately $16,276,000. Bank of America Corp DE increased its stake in shares of NMI by 22.7% during the 1st quarter. Bank of America Corp DE now owns 1,304,633 shares of the financial services provider’s stock worth $48,937,000 after purchasing an additional 241,724 shares in the last quarter. Finally, Amundi lifted its holdings in NMI by 1,364.3% in the 1st quarter. Amundi now owns 168,246 shares of the financial services provider’s stock valued at $6,311,000 after purchasing an additional 156,756 shares in the last quarter. Hedge funds and other institutional investors own 94.12% of the company’s stock.

NMI Trading Down 11.8%

The business has a 50 day simple moving average of $42.02 and a two-hundred day simple moving average of $40.37. 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 company has a market cap of $2.94 billion, a PE ratio of 7.67, a price-to-earnings-growth ratio of 1.42 and a beta of 0.52.

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.