NMI (NASDAQ:NMIH) Sees Unusually-High Trading Volume – Still a Buy?

Shares of NMI Holdings, Inc. (NASDAQ:NMIH) saw strong trading volume on Friday . 431,171 shares were traded during mid-day trading, a decline of 20% from the previous session’s volume of 537,460 shares.The stock last traded at $41.44 and had previously closed at $41.02.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on NMIH. Royal Bank of Canada upgraded shares of NMI from a “sector perform” rating to an “outperform” rating and raised their price target for the stock from $40.00 to $48.00 in a research note on Wednesday, September 18th. Truist Financial raised their target price on NMI from $37.00 to $47.00 and gave the stock a “buy” rating in a research report on Wednesday, July 31st. JPMorgan Chase & Co. upped their price target on NMI from $40.00 to $42.00 and gave the company an “overweight” rating in a research report on Wednesday, July 31st. StockNews.com cut NMI from a “buy” rating to a “hold” rating in a report on Wednesday, August 21st. Finally, Keefe, Bruyette & Woods upped their target price on shares of NMI from $37.00 to $40.00 and gave the stock a “market perform” rating in a report on Thursday, August 1st. Three analysts have rated the stock with a hold rating and six have issued a buy rating to the company. Based on data from MarketBeat, NMI currently has an average rating of “Moderate Buy” and a consensus target price of $41.00.

NMI Price Performance

The stock has a fifty day moving average of $39.68 and a 200-day moving average of $35.34. The company has a quick ratio of 0.67, a current ratio of 0.67 and a debt-to-equity ratio of 0.20. The firm has a market capitalization of $3.31 billion, a P/E ratio of 10.22, a PEG ratio of 0.94 and a beta of 1.12.

NMI (NASDAQ:NMIH) last released its quarterly earnings results on Tuesday, July 30th. The financial services provider reported $1.20 EPS for the quarter, beating the consensus estimate of $1.05 by $0.15. NMI had a net margin of 56.40% and a return on equity of 18.29%. The business had revenue of $162.12 million for the quarter, compared to analysts’ expectations of $138.49 million. During the same period in the prior year, the firm earned $0.95 earnings per share. NMI’s revenue was up 13.6% compared to the same quarter last year. Equities analysts predict that NMI Holdings, Inc. will post 4.5 EPS for the current fiscal year.

Insider Activity

In other news, insider William J. Leatherberry sold 3,000 shares of the company’s stock in a transaction on Tuesday, August 27th. The stock was sold at an average price of $40.07, for a total transaction of $120,210.00. Following the transaction, the insider now owns 153,689 shares of the company’s stock, valued at $6,158,318.23. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. In other news, Director Michael J. Embler sold 26,008 shares of the business’s stock in a transaction dated Wednesday, July 31st. The stock was sold at an average price of $39.35, for a total transaction of $1,023,414.80. Following the completion of the transaction, the director now directly owns 61,607 shares in the company, valued at approximately $2,424,235.45. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider William J. Leatherberry sold 3,000 shares of the stock in a transaction that occurred on Tuesday, August 27th. The shares were sold at an average price of $40.07, for a total transaction of $120,210.00. Following the completion of the sale, the insider now owns 153,689 shares in the company, valued at $6,158,318.23. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 2.70% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of NMIH. UniSuper Management Pty Ltd acquired a new position in shares of NMI in the 1st quarter valued at $507,000. First Eagle Investment Management LLC grew its stake in NMI by 17.6% in the first quarter. First Eagle Investment Management LLC now owns 403,019 shares of the financial services provider’s stock valued at $13,034,000 after acquiring an additional 60,200 shares during the period. Leuthold Group LLC bought a new stake in shares of NMI in the first quarter worth about $2,987,000. Susquehanna Fundamental Investments LLC acquired a new stake in shares of NMI during the first quarter worth about $532,000. Finally, Leeward Investments LLC MA grew its position in shares of NMI by 5.6% in the 2nd quarter. Leeward Investments LLC MA now owns 306,985 shares of the financial services provider’s stock valued at $10,450,000 after purchasing an additional 16,295 shares during the period. Institutional investors and hedge funds own 94.12% of the company’s stock.

NMI Company Profile

NMI Holdings, Inc provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance services, such as primary and pool insurance; and outsourced loan review services to mortgage loan originators. It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders, and other non-bank lenders.