NMI (NASDAQ:NMIH) Shares Gap Down – Should You Sell?

NMI Holdings, Inc. (NASDAQ:NMIH)’s stock price gapped down prior to trading on Friday . The stock had previously closed at $38.80, but opened at $37.82. NMI shares last traded at $37.26, with a volume of 84,991 shares changing hands.

Analyst Ratings Changes

Several equities research analysts have recently commented on NMIH shares. JPMorgan Chase & Co. reduced their price target on shares of NMI from $46.00 to $41.00 and set an “overweight” rating for the company in a report on Monday, December 9th. Barclays lowered shares of NMI from an “overweight” rating to an “equal weight” rating and reduced their price target for the company from $48.00 to $41.00 in a report on Monday, January 6th. Keefe, Bruyette & Woods reduced their price objective on shares of NMI from $44.00 to $43.00 and set a “market perform” rating for the company in a research note on Wednesday, January 8th. Finally, Royal Bank of Canada reduced their price objective on shares of NMI from $48.00 to $47.00 and set an “outperform” rating for the company in a research note on Thursday, November 7th. Four analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $42.00.

NMI Price Performance

The firm’s fifty day moving average price is $37.63 and its 200 day moving average price is $38.78. The firm has a market capitalization of $2.94 billion, a PE ratio of 8.49, a P/E/G ratio of 0.91 and a beta of 1.12. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 0.19.

NMI (NASDAQ:NMIH) last released its quarterly earnings data on Wednesday, February 12th. The financial services provider reported $1.07 EPS for the quarter, missing the consensus estimate of $1.14 by ($0.07). NMI had a net margin of 56.20% and a return on equity of 17.82%. As a group, equities analysts forecast that NMI Holdings, Inc. will post 4.54 earnings per share for the current year.

Hedge Funds Weigh In On NMI

Large investors have recently made changes to their positions in the company. Principal Securities Inc. lifted its stake in shares of NMI by 66.5% in the 4th quarter. Principal Securities Inc. now owns 716 shares of the financial services provider’s stock valued at $26,000 after purchasing an additional 286 shares during the period. GAMMA Investing LLC lifted its stake in shares of NMI by 57.2% in the 3rd quarter. GAMMA Investing LLC now owns 728 shares of the financial services provider’s stock valued at $30,000 after purchasing an additional 265 shares during the period. USA Financial Formulas acquired a new position in shares of NMI in the 3rd quarter valued at $57,000. Smartleaf Asset Management LLC raised its position in NMI by 288.4% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,868 shares of the financial services provider’s stock worth $69,000 after acquiring an additional 1,387 shares during the period. Finally, KBC Group NV raised its position in NMI by 38.3% during the fourth quarter. KBC Group NV now owns 3,221 shares of the financial services provider’s stock worth $118,000 after acquiring an additional 892 shares during the period. 94.12% of the stock is currently owned by institutional investors and hedge funds.

NMI Company Profile

NMI Holdings, Inc provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance services, such as primary and pool insurance; and outsourced loan review services to mortgage loan originators. It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders, and other non-bank lenders.