NMI (NASDAQ:NMIH) Rating Increased to Outperform at Royal Bank of Canada

NMI (NASDAQ:NMIH) was upgraded by equities researchers at Royal Bank of Canada from a “sector perform” rating to an “outperform” rating in a research note issued to investors on Wednesday, MarketBeat.com reports. The firm currently has a $48.00 price target on the financial services provider’s stock, up from their previous price target of $40.00. Royal Bank of Canada’s target price would indicate a potential upside of 15.63% from the stock’s previous close.

Several other equities analysts have also recently issued reports on NMIH. JPMorgan Chase & Co. boosted their price target on shares of NMI from $40.00 to $42.00 and gave the company an “overweight” rating in a research report on Wednesday, July 31st. Barclays upped their target price on shares of NMI from $41.00 to $43.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 31st. 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 research note on Thursday, August 1st. Truist Financial upped their target price on shares of NMI from $37.00 to $47.00 and gave the stock a “buy” rating in a research note on Wednesday, July 31st. Finally, StockNews.com downgraded shares of NMI from a “buy” rating to a “hold” rating in a research report on Wednesday, August 21st. Three investment analysts have rated the stock with a hold rating and six have given a buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $41.00.

NMI Stock Performance

Shares of NASDAQ:NMIH opened at $41.51 on Wednesday. The company has a market cap of $3.33 billion, a price-to-earnings ratio of 10.27, a price-to-earnings-growth ratio of 0.89 and a beta of 1.12. The company has a 50-day moving average price of $38.94 and a 200-day moving average price of $34.44. The company has a current ratio of 0.67, a quick ratio of 0.67 and a debt-to-equity ratio of 0.20. NMI has a 12 month low of $25.62 and a 12 month high of $42.49.

NMI (NASDAQ:NMIH) last announced its quarterly earnings results on Tuesday, July 30th. The financial services provider reported $1.20 earnings per share (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 company had revenue of $162.12 million for the quarter, compared to analysts’ expectations of $138.49 million. During the same quarter in the previous year, the company earned $0.95 earnings per share. NMI’s quarterly revenue was up 13.6% on a year-over-year basis. As a group, equities analysts anticipate that NMI will post 4.5 EPS for the current year.

Insiders Place Their Bets

In other NMI news, 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 value of $120,210.00. Following the transaction, the insider now directly owns 153,689 shares in the company, valued at $6,158,318.23. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other NMI news, 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 value of $120,210.00. Following the transaction, the insider now directly owns 153,689 shares in the company, valued at $6,158,318.23. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Michael J. Embler sold 26,008 shares of the stock in a transaction that occurred on 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 owns 61,607 shares in the company, valued at $2,424,235.45. The disclosure for this sale can be found here. Insiders own 2.70% of the company’s stock.

Hedge Funds Weigh In On NMI

Several institutional investors have recently bought and sold shares of the stock. Sanctuary Advisors LLC purchased a new position in NMI during the second quarter valued at $1,603,000. Clearbridge Investments LLC grew its stake in NMI by 24.3% during the second quarter. Clearbridge Investments LLC now owns 1,001,095 shares of the financial services provider’s stock valued at $34,077,000 after acquiring an additional 195,779 shares in the last quarter. Quarry LP grew its stake in NMI by 135.1% during the second quarter. Quarry LP now owns 858 shares of the financial services provider’s stock valued at $29,000 after acquiring an additional 493 shares in the last quarter. Creative Planning grew its stake in NMI by 67.3% during the second quarter. Creative Planning now owns 17,649 shares of the financial services provider’s stock valued at $601,000 after acquiring an additional 7,102 shares in the last quarter. Finally, Algert Global LLC grew its stake in NMI by 10.6% during the second quarter. Algert Global LLC now owns 75,261 shares of the financial services provider’s stock valued at $2,562,000 after acquiring an additional 7,215 shares in the last quarter. 94.12% of the stock is owned by hedge funds and other institutional investors.

About NMI

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.