NMI (NASDAQ:NMIH – Get Free Report) posted its quarterly earnings data on Thursday. The financial services provider reported $1.23 EPS for the quarter, missing the consensus estimate of $1.30 by ($0.07), FiscalAI reports. The firm had revenue of $187.55 million for the quarter, compared to the consensus estimate of $159.20 million. NMI had a return on equity of 15.13% and a net margin of 54.10%. During the same quarter last year, the firm earned $1.21 EPS.
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 Stock Performance
Shares of NMIH stock traded up $0.31 on Thursday, hitting $44.27. The company had a trading volume of 972,894 shares, compared to its average volume of 873,318. The firm has a market cap of $3.33 billion, a P/E ratio of 8.71, a price-to-earnings-growth ratio of 1.44 and a beta of 0.52. The company has a 50-day moving average price of $42.14 and a 200-day moving average price of $40.36. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.15. NMI has a twelve month low of $35.12 and a twelve month high of $46.74.
Wall Street Analysts Forecast Growth
A number of research firms have commented on NMIH. Royal Bank Of Canada reiterated an “outperform” rating and issued a $53.00 price target on shares of NMI in a research note on Tuesday, August 4th. Bank of America lowered NMI from a “buy” rating to a “neutral” rating and dropped their price target for the stock from $51.00 to $44.00 in a research note on Friday, October 30th. JPMorgan Chase & Co. cut their price objective on shares of NMI from $50.00 to $45.00 and set an “overweight” rating on the stock in a report on Monday, October 12th. Weiss Ratings downgraded shares of NMI from a “buy (b+)” rating to a “buy (b)” rating in a report on Tuesday. Finally, Truist Financial increased their price objective on shares of NMI from $49.00 to $51.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Five equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $47.88.
Check Out Our Latest Stock Report on NMIH
Insider Transactions at NMI
In related news, CEO Adam Pollitzer sold 172,706 shares of the firm’s stock in a transaction dated 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 sale, the chief executive officer directly owned 270,267 shares of the company’s stock, valued at $12,121,474.95. This trade represents a 38.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Aurora Swithenbank sold 11,662 shares of NMI stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $44.51, for a total value of $519,075.62. Following the transaction, the executive vice president owned 50,734 shares of the company’s stock, valued at approximately $2,258,170.34. This represents a 18.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 2.44% of the stock is owned by corporate insiders.
NMI Company Profile
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.
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