NMI (NASDAQ:NMIH) Announces Earnings Results

NMI (NASDAQ:NMIH) announced its quarterly earnings results on Thursday. The financial services provider reported $1.38 earnings per share for the quarter, topping analysts’ consensus estimates of $1.28 by $0.10, FiscalAI reports. NMI had a return on equity of 15.31% and a net margin of 54.10%.The firm had revenue of $187.89 million for the quarter, compared to the consensus estimate of $156.26 million. During the same quarter in the previous year, the business earned $1.22 earnings per share. The business’s revenue was up 8.1% compared to the same quarter last year.

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 Stock Performance

Shares of NMIH traded up $0.86 during midday trading on Friday, reaching $44.30. 858,791 shares of the stock were exchanged, compared to its average volume of 425,083. NMI has a twelve month low of $34.84 and a twelve month high of $46.74. The company has a quick ratio of 0.63, a current ratio of 0.63 and a debt-to-equity ratio of 0.16. The company has a market cap of $3.37 billion, a P/E ratio of 8.72, a PEG ratio of 1.51 and a beta of 0.54. The stock’s 50 day simple moving average is $39.62 and its 200 day simple moving average is $38.98.

Insider Activity at NMI

In related news, Director Michael Curry Montgomery sold 1,554 shares of the firm’s stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $37.90, for a total transaction of $58,896.60. Following the transaction, the director directly owned 69,026 shares of the company’s stock, valued at approximately $2,616,085.40. This trade represents a 2.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 2.44% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Bank of America Corp DE increased its stake in NMI by 95.3% during the 3rd quarter. Bank of America Corp DE now owns 1,014,557 shares of the financial services provider’s stock worth $38,898,000 after acquiring an additional 495,144 shares during the period. BNP Paribas Financial Markets increased its position in shares of NMI by 184.3% in the second quarter. BNP Paribas Financial Markets now owns 427,397 shares of the financial services provider’s stock worth $18,032,000 after purchasing an additional 277,065 shares during the period. Ameriprise Financial Inc. raised its stake in NMI by 85.7% in the third quarter. Ameriprise Financial Inc. now owns 600,139 shares of the financial services provider’s stock valued at $23,009,000 after purchasing an additional 276,897 shares in the last quarter. Jane Street Group LLC lifted its position in NMI by 1,312.9% during the first quarter. Jane Street Group LLC now owns 224,152 shares of the financial services provider’s stock worth $8,081,000 after purchasing an additional 208,287 shares during the period. Finally, AQR Capital Management LLC grew its stake in NMI by 30.4% during the fourth quarter. AQR Capital Management LLC now owns 733,478 shares of the financial services provider’s stock worth $29,919,000 after buying an additional 171,203 shares in the last quarter. 94.12% of the stock is owned by institutional investors.

More NMI News

Here are the key news stories impacting NMI this week:

• Positive Sentiment: Second-quarter earnings beat expectations: NMIH reported adjusted and GAAP earnings of $1.38 per diluted share, above the $1.28 consensus estimate and up from $1.22 a year ago. Revenue reached $187.89 million, well ahead of the $156.26 million estimate and 8.1% higher year over year. NMIH Q2 Earnings Beat on Premium Growth and Lower Claims
• Positive Sentiment: Record profitability and favorable operating trends: Net income rose to $105.8 million from $96.2 million in the prior-year quarter. Premium growth, stronger investment income and lower claims helped expand profitability, with a reported net margin of 53.82% and return on equity of 15.18%. NMI Holdings Reports Record Second Quarter 2026 Financial Results
• Positive Sentiment: Analysts raised their price targets: Truist increased its target to $51 from $49 and maintained a “buy” rating, while JPMorgan lifted its target to $50 from $48 and kept an “overweight” rating. The revisions indicate analysts see further upside following the earnings beat. Analyst Price Target Revisions
• Neutral Sentiment: Capital return remains a support: NMIH said it has approximately $167 million of remaining share-repurchase capacity, which could support per-share results and shareholder returns. NMIH Capital Return Focus
• Negative Sentiment: Credit-cycle risks remain: Management expects defaults to trend higher, a potential headwind for future claims and profitability. Separately, a valuation analysis identified roughly 15% downside to its estimated fair value, highlighting that some investors may view the recent gains as already reflecting much of the good news. NMIH Earnings Watch and Valuation

Analyst Upgrades and Downgrades

NMIH has been the topic of a number of recent analyst reports. JPMorgan Chase & Co. boosted their target price on NMI from $48.00 to $50.00 and gave the stock an “overweight” rating in a report on Friday. Truist Financial upped their price objective on shares of NMI from $49.00 to $51.00 and gave the company a “buy” rating in a report on Friday. Weiss Ratings raised shares of NMI from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, June 12th. UBS Group set a $46.00 target price on shares of NMI in a report on Friday, May 22nd. Finally, Royal Bank Of Canada initiated coverage on shares of NMI in a research note on Friday, May 22nd. They issued an “outperform” rating and a $46.00 price target on the stock. Five investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $47.17.

About NMI

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.