NMI (NASDAQ:NMIH) Issues Quarterly Earnings Results, Misses Expectations By $0.07 EPS

NMI (NASDAQ:NMIH) issued its quarterly earnings results on Thursday. The financial services provider reported $1.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.30 by ($0.07), FiscalAI reports. NMI had a net margin of 54.10% and a return on equity of 15.13%. The business had revenue of $187.55 million during the quarter, compared to analyst estimates of $159.20 million. During the same period last year, the firm posted $1.21 earnings per share.

Here are the key takeaways from NMI’s conference call:

• National MI generated $13.6 billion of new insurance written and ended the quarter with record insurance-in-force of $229.7 billion. Revenue was $187.5 million, while adjusted net income was $93.7 million, or $1.23 per diluted share.
• New quota-share and excess-of-loss reinsurance treaties provide forward-flow coverage for business written through 2030 at an estimated 4% pre-tax cost of capital. Management said the deals strengthen credit-risk protection and capital planning, but do not directly change gross-line pricing.
• Defaults increased to 8,571 from 8,020 in the prior quarter, and claims expense rose to $29.1 million from $13.1 million. Management attributed the increase to normal seasonality and portfolio growth and seasoning, while describing credit trends as in line with expectations.
• The company repurchased $27.1 million of stock during the quarter and has $140 million of authorization remaining, but management expects buybacks to continue at roughly the recent pace rather than accelerate. It cited ongoing balance-sheet and growth opportunities as factors in balancing shareholder distributions.

NMI Price Performance

Shares of NMIH stock traded down $5.24 during trading hours on Friday, reaching $39.03. The stock had a trading volume of 1,948,240 shares, compared to its average volume of 865,134. The stock’s fifty day simple moving average is $42.02 and its 200 day simple moving average is $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. NMI has a 12 month low of $35.12 and a 12 month high of $46.74. The firm has a market capitalization of $2.94 billion, a PE ratio of 8.56, a PEG ratio of 1.42 and a beta of 0.52.

Key Headlines 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

Insider Buying and Selling at NMI

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

Analyst Ratings Changes

NMIH has been the subject of several recent research reports. BTIG Research initiated coverage on NMI in a report on Tuesday, September 22nd. They set a “buy” rating and a $54.00 price target for the company. Weiss Ratings cut NMI from a “buy (b+)” rating to a “buy (b)” rating in a research note on Tuesday. Barclays cut their price objective on shares of NMI from $43.00 to $42.00 and set an “equal weight” rating on the stock in a report on Friday. Keefe, Bruyette & Woods lowered shares of NMI from an “outperform” rating to a “market perform” rating and set a $47.00 target price for the company. in a research note on Monday, August 3rd. Finally, Royal Bank Of Canada reiterated an “outperform” rating and issued a $53.00 target price on shares of NMI in a report on Tuesday, August 4th. Five research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $47.75.

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.