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

NMI (NASDAQ:NMIH) announced its quarterly earnings data on Thursday. The financial services provider reported $1.23 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 firm had revenue of $187.55 million during the quarter, compared to analysts’ expectations of $159.20 million. During the same period in the prior year, the company posted $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 Trading Down 11.8%

Shares of NMIH stock traded down $5.24 during trading hours on Friday, hitting $39.03. The company had a trading volume of 1,948,240 shares, compared to its average volume of 865,134. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.65 and a quick ratio of 0.65. The stock has a market capitalization of $2.94 billion, a PE ratio of 8.56, a price-to-earnings-growth ratio of 1.42 and a beta of 0.52. The company’s fifty day moving average is $42.02 and its 200 day moving average is $40.37. NMI has a fifty-two week low of $35.12 and a fifty-two week high of $46.74.

NMI News Summary

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

Analyst Ratings Changes

Several analysts have recently weighed in on NMIH shares. Royal Bank Of Canada reissued an “outperform” rating and issued a $53.00 price target on shares of NMI in a research note on Tuesday, August 4th. Keefe, Bruyette & Woods lowered shares of NMI from an “outperform” rating to a “market perform” rating and set a $47.00 price target on the stock. in a research report on Monday, August 3rd. Bank of America cut NMI from a “buy” rating to a “neutral” rating and decreased their price objective for the company from $51.00 to $44.00 in a report on Friday, October 30th. Barclays lowered their price objective on NMI from $43.00 to $42.00 and set an “equal weight” rating for the company in a research report on Friday. Finally, Truist Financial increased their price objective on NMI from $49.00 to $51.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Five analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $47.75.

Insider Activity at NMI

In other NMI news, EVP Aurora Swithenbank sold 11,662 shares of the company’s stock in a transaction on 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 in the company, valued at $2,258,170.34. This represents a 18.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Adam Pollitzer sold 172,706 shares of the firm’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $44.85, for a total value of $7,745,864.10. Following the transaction, the chief executive officer owned 270,267 shares of the company’s stock, valued at approximately $12,121,474.95. This represents a 38.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 2.44% of the stock is currently owned by company 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.