NMI Holdings Receives Upgrade to "Buy" Rating by StockNews.com

NMI Holdings, Inc. (Nasdaq: NMIH), a prominent player in the private mortgage insurance market, received a positive shift in its stock rating recently. On Friday, StockNews.com raised their rating for NMIH stock from a 'hold' to a 'buy' status. This upgrade follows a series of analytic evaluations and reports from various financial research firms.

Other Analyst Reports on NMI

Before this upgrade, NMIH had also been assessed by other experts in the field. JPMorgan Chase & Co. adjusted their price target for NMI from $35.00 to $36.00, labeling it as 'overweight.' Keefe, Bruyette & Woods increased their price target from $33.00 to $36.00 with a 'market perform' rating. Truist Financial upgraded their target from $36.00 to $37.00 and gave NMI a 'buy' rating. Lastly, the Royal Bank of Canada set their target from $31.00 to $33.00 and provided a 'sector perform' rating.

Two analysts have given NMI a 'hold' rating while seven have recommended a 'buy.' The average consensus rating for NMI is currently 'Moderate Buy' with a target price of $34.67, based on data from MarketBeat.

NMI's Financial Performance

NMI shares opened at $33.41 on the latest trading day, with the company's market capitalization standing at $2.68 billion. The firm has favorable financial ratios such as a P/E ratio of 8.27, a P/E/G ratio of 1.17, and a beta of 1.06. Its liquidity metrics are solid with a quick ratio and a current ratio both at 0.89, plus a low debt-to-equity ratio of 0.20. NMIH hit a yearly low of $23.63 and a high of $33.58, with moving averages indicating robust stock performance over longer periods.

In their most recent quarterly report, NMIH declared an EPS of $1.08, surpassing the expected $0.96 by analysts. With quarterly revenue reaching $156.25 million, there was a year-over-year increase of 14.2%. Looking ahead, analysts project an EPS of 4.18 for the current fiscal year.

Insider Transactions at NMI

Recent insider trading activity recorded significant stock sales by NMI's executives. EVP Robert Owen Smith made a transaction selling 3,000 shares at an average price of $31.19. Post-sale, Smith retained 82,612 shares of the company. VP Nicholas Daniel Realmuto also sold shares, with 1,249 units going at an average price of $30.23, leaving him with 10,455 shares. Over the past quarter, insiders offloaded 145,158 shares worth about $4,395,582, which currently translates to 2.40% insider ownership of company stock.

Institutional and Hedge Fund Involvement

Diverse institutional investors and hedge funds have either increased or decreased their stakes in NMI. Notable movements include Daiwa Securities Group Inc. initiating a new stake, Fidelis Capital Partners LLC making a fresh investment, and TFO Wealth Partners LLC expanding their shareholdings. Institutional investors hold a significant portion, owning 94.12% of NMI's stock.

NMI's Business Operations

NMI Holdings provides critical services in the private mortgage insurance sector in the U.S., catering to a wide variety of financial institutions such as banks, credit unions, and non-bank lenders. Its portfolio includes both primary insurance and pool insurance products, complemented by loan review services.

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