JP Morgan Upgrade NMI Holdings Inc. [NMIH]. What else is Wall St. saying?

NMI Holdings Inc. [NASDAQ: NMIH] gained 2.86% or 0.45 points to close at $16.17 with a heavy trading volume of 1249017 shares. The company report on August 5, 2020 that NMI Holdings, Inc. Reports Second Quarter 2020 Financial Results.

NMI Holdings, Inc. (Nasdaq: NMIH) today reported GAAP net income of $26.8 million, or $0.36 per diluted share, for the second quarter ended June 30, 2020, which compares to $58.3 million, or $0.74 per diluted share, in the first quarter ended March 31, 2020 and $39.1 million, or $0.56 per diluted share, in the second quarter ended June 30, 2019. Adjusted net income for the quarter was $29.7 million or $0.40 per diluted share, which compares to $52.7 million or $0.75 per diluted share in the first quarter ended March 31, 2020 and $41.4 million or $0.59 per diluted share in the second quarter ended June 30, 2019. Results for the second quarter ended June 30, 2020, reflect the impact of additional claims and claim expenses incurred on higher default experience in connection with the COVID-19 pandemic. The non-GAAP financial measures adjusted net income, adjusted diluted earnings per share and adjusted return-on-equity are presented in this release to enhance the comparability of financial results between periods. See “Use of Non-GAAP Financial Measures” and our reconciliation of such measures to their most comparable GAAP measures, below.

Claudia Merkle, CEO of National MI, said, “From the start of this crisis, we have taken steps to protect the health and safety of our employees and ensure our continued ability to seamlessly support our lenders and their borrowers. While still early, we have been encouraged by the resiliency weve seen in the housing market. Demand has been robust, house prices have continued to rise and record low interest rates have giving more Americans a chance to access homeownership at a time when its most critical. Merkle continued, This is the time when our customers need us most, and our broadly conservative stance heading into this crisis, and the recent success we have achieved in the capital and reinsurance markets positions us well to continue supporting them and the overall housing market during the COVID-19 pandemic.

It opened the trading session at $15.50, the shares rose to $16.31 and dropped to $15.42, the range by which the price of stock traded the whole day. The daily chart for NMIH points out that the company has recorded -52.16% loss over the past six months. However, it is still -100.62% lower than its most recent low trading price.

If we look at the average trading volume of 1.47M shares, NMIH reached to a volume of 1249017 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about NMI Holdings Inc. [NMIH]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NMIH shares is $21.91 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NMIH stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

JP Morgan have made an estimate for NMI Holdings Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on July 15, 2020. The new note on the price target was released on June 09, 2020, representing the official price target for NMI Holdings Inc. stock.

The Average True Range (ATR) for NMI Holdings Inc. is set at 0.81, with the Price to Sales ratio for NMIH stock in the period of the last 12 months amounting to 3.13. The Price to Book ratio for the last quarter was 0.95, with the Price to Cash per share for the same quarter was set at 6.26. Price to Free Cash Flow for NMIH in the course of the last twelve months was 5.60.

Trading performance analysis for NMIH stock

NMI Holdings Inc. [NMIH] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.19. With this latest performance, NMIH shares gained by 17.43% in over the last four-week period, additionally sinking by -52.16% over the last 6 months – not to mention a drop of -41.18% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for NMIH stock in for the last two-week period is set at 57.33, with the RSI for the last a single of trading hit 64.18, and the three-weeks RSI is set at 54.91 for NMI Holdings Inc. [NMIH]. The present Moving Average for the last 50 days of trading for this stock 15.74, while it was recorded at 15.87 for the last single week of trading, and 22.49 for the last 200 days.

NMI Holdings Inc. [NMIH]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and NMI Holdings Inc. [NMIH] shares currently have an operating margin of +60.43. NMI Holdings Inc.’s Net Margin is presently recorded at +45.35.

Return on Total Capital for NMIH is now 23.81, given the latest momentum, and Return on Invested Capital for the company is 17.83. Return on Equity for this stock inclined to 21.07, with Return on Assets sitting at 13.77. When it comes to the capital structure of this company, NMI Holdings Inc. [NMIH] has a Total Debt to Total Equity ratio set at 16.46. Additionally, NMIH Total Debt to Total Capital is recorded at 14.14, with Total Debt to Total Assets ending up at 10.53. Long-Term Debt to Equity for the company is recorded at 16.19, with the Long-Term Debt to Total Capital now at 13.90.

Reflecting on the efficiency of the workforce at the company, NMI Holdings Inc. [NMIH] managed to generate an average of $535,692 per employee.

NMI Holdings Inc. [NMIH]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, NMI Holdings Inc. posted 0.71/share EPS, while the average EPS was predicted by analysts to be reported at 0.62/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 14.50%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for NMIH. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for NMI Holdings Inc. go to 9.89%.

An analysis of insider ownership at NMI Holdings Inc. [NMIH]

There are presently around $1,070 million, or 79.10% of NMIH stock, in the hands of institutional investors. The top three institutional holders of NMIH stocks are: BLACKROCK INC. with ownership of 9,758,754, which is approximately -3.059% of the company’s market cap and around 1.60% of the total institutional ownership; VANGUARD GROUP INC, holding 5,735,499 shares of the stock with an approximate value of $92.74 million in NMIH stocks shares; and OAKTREE CAPITAL MANAGEMENT LP, currently with $71.15 million in NMIH stock with ownership of nearly 0% of the company’s market capitalization.

133 institutional holders increased their position in NMI Holdings Inc. [NASDAQ:NMIH] by around 12,808,377 shares. Additionally, 118 investors decreased positions by around 10,039,681 shares, while 33 investors held positions by with 43,307,006 shares. The mentioned changes placed institutional holdings at 66,155,064 shares, according to the latest SEC report filing. NMIH stock had 49 new institutional investments in for a total of 3,826,731 shares, while 59 institutional investors sold positions of 4,744,354 shares during the same period.

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