NMI (NASDAQ:NMIH) Releases Quarterly Earnings Results, Beats Estimates By $0.10 EPS

NMI (NASDAQ:NMIH) issued its earnings results on Thursday. The financial services provider reported $1.38 EPS for the quarter, topping analysts’ consensus estimates of $1.28 by $0.10, FiscalAI reports. The firm had revenue of $187.89 million for the quarter, compared to the consensus estimate of $156.26 million. NMI had a return on equity of 15.18% and a net margin of 53.82%.The company’s revenue was up 8.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.22 earnings per share.

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

• Record second-quarter results included $187.9 million of revenue, $106 million of adjusted net income, and adjusted diluted EPS of $1.38, with net income up 7% sequentially and 10% year over year.
• New insurance written totaled $16 billion, lifting primary insurance in force to a record $227.1 billion; management also highlighted continued market-share momentum and a 49% increase in its insured portfolio over four years.
• Credit performance remained strong, with defaults declining slightly to 8,020 and a 1.16% default rate, while favorable prior-year reserve development continued. Management cited resilient employment, home-price appreciation, and borrower home equity as supports for credit quality.
• National MI repurchased $31.4 million of stock during the quarter and has $167 million remaining under its authorization; excess available assets under PMIERs totaled $1.6 billion, supporting future capital flexibility.
• Management expects defaults to trend higher in the second half as seasonal tailwinds fade and noted regional housing pressure in Florida, Texas, parts of the Sun Belt, Mountain West, and West Coast. It also flagged greater competitive pressure in large, transactionally oriented business.

NMI Price Performance

Shares of NASDAQ:NMIH traded down $0.90 during trading on Thursday, reaching $43.44. 448,645 shares of the company’s stock traded hands, compared to its average volume of 425,140. The company has a quick ratio of 0.63, a current ratio of 0.63 and a debt-to-equity ratio of 0.16. NMI has a fifty-two week low of $34.84 and a fifty-two week high of $44.74. The company has a 50-day simple moving average of $39.48 and a 200-day simple moving average of $38.95. The firm has a market cap of $3.30 billion, a PE ratio of 8.85, a P/E/G ratio of 1.54 and a beta of 0.54.

Insiders Place Their Bets

In related news, Director Michael Curry Montgomery sold 1,554 shares of the company’s stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $37.90, for a total value of $58,896.60. Following the completion of the transaction, the director owned 69,026 shares of the company’s stock, valued at approximately $2,616,085.40. This represents a 2.20% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 2.44% of the company’s stock.

Institutional Trading of NMI

Institutional investors have recently bought and sold shares of the business. California State Teachers Retirement System raised its stake in shares of NMI by 0.5% during the 2nd quarter. California State Teachers Retirement System now owns 70,112 shares of the financial services provider’s stock worth $2,958,000 after buying an additional 328 shares during the period. Royal Bank of Canada lifted its position in shares of NMI by 0.3% during the 4th quarter. Royal Bank of Canada now owns 111,334 shares of the financial services provider’s stock valued at $4,541,000 after buying an additional 348 shares in the last quarter. Illinois Municipal Retirement Fund grew its stake in NMI by 0.9% in the 4th quarter. Illinois Municipal Retirement Fund now owns 40,830 shares of the financial services provider’s stock valued at $1,665,000 after acquiring an additional 372 shares during the period. EP Wealth Advisors LLC grew its stake in NMI by 4.3% in the 2nd quarter. EP Wealth Advisors LLC now owns 9,836 shares of the financial services provider’s stock valued at $415,000 after acquiring an additional 408 shares during the period. Finally, Neuberger Berman Group LLC increased its holdings in NMI by 5.6% in the 4th quarter. Neuberger Berman Group LLC now owns 7,954 shares of the financial services provider’s stock worth $324,000 after acquiring an additional 421 shares in the last quarter. 94.12% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on NMIH shares. Royal Bank Of Canada began coverage on NMI in a research report on Friday, May 22nd. They set an “outperform” rating and a $46.00 price target for the company. UBS Group set a $46.00 price objective on shares of NMI in a research note on Friday, May 22nd. Keefe, Bruyette & Woods lifted their target price on shares of NMI from $46.00 to $47.00 and gave the company an “outperform” rating in a report on Thursday, June 25th. Barclays cut their target price on shares of NMI from $44.00 to $43.00 and set an “equal weight” rating for the company in a report on Monday, April 6th. Finally, Weiss Ratings upgraded shares of NMI from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, June 12th. Four investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat, NMI has an average rating of “Moderate Buy” and a consensus price target of $46.00.

NMI Company Profile

NMI Holdings, Inc (NASDAQ: NMIH) is a publicly traded mortgage insurance company that provides private mortgage insurance to lenders across the United States and Canada. Through its principal subsidiary, National Mortgage Insurance Corporation, NMI underwrites and issues policies that protect originators and investors against losses arising from borrower default on residential mortgage loans. By mitigating credit risk on higher‐loan‐to‐value mortgages, the company supports homebuyers’ access to financing and contributes to overall market liquidity.

Beyond its core mortgage insurance products, NMI offers credit risk‐sharing and reinsurance solutions designed to help clients optimize capital utilization and manage portfolio exposure.