NMI Holdings (NMIH): Evaluating Valuation Following Recent Earnings Unveiling Undervalued Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 21 2025
0mins
Should l Buy NMIH?
Source: Yahoo Finance
Quarterly Performance: NMI Holdings (NMIH) reported steady quarterly results with modest year-over-year growth in revenue and net income, indicating solid business momentum despite a slight dip in stock price.
Stock Valuation: The current share price of $37.29 is nearly 19% below the average analyst target of $44.14, suggesting potential undervaluation and a disconnect between market price and expected future growth.
Market Growth Factors: The ongoing increase in homeownership among younger generations, coupled with resilient macroeconomic conditions and housing supply shortages, is expected to drive sustained growth in new insurance written (NIW) and revenue for NMI Holdings.
Risks and Considerations: Potential challenges to NMI Holdings' growth narrative include cooling housing prices and tightening regulatory requirements, which could pressure earnings and impact future valuations.
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Analyst Views on NMIH
Wall Street analysts forecast NMIH stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 38.250
Low
43.00
Averages
45.00
High
48.00
Current: 38.250
Low
43.00
Averages
45.00
High
48.00
About NMIH
NMI Holdings, Inc. provides mortgage insurance (MI), through its wholly owned insurance subsidiaries, National Mortgage Insurance Corporation (NMIC) and National Mortgage Reinsurance Inc One (Re One). NMIC is its primary insurance subsidiary and is licensed to write MI coverage in all 50 states and District of Columbia (D.C.). Its subsidiary, NMI Services, Inc. (NMIS), provides outsourced loan review services to mortgage loan originators. Primary MI provides default protection on individual mortgage loans at specified coverage percentages. All its primary insurance is written on first-lien mortgage loans, with nearly all secured by owner-occupied single-family homes (defined as one-to-four family homes and condominiums). It offers outsourced loan review services to mortgage originators through NMIS. It also offers post-close underwriting reviews, which the Company refers to as independent validations, for both non-delegated and delegated loans.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Muhlenkamp Reduces Stake in NMI Holdings
- Share Reduction Details: Muhlenkamp & Co sold 101,570 shares of NMI Holdings in Q1 2026, with an estimated transaction value of $3.93 million, indicating a loss of confidence as its stake dropped from 5.1% to 3.62% of AUM.
- Market Cap and Revenue Data: As of May 5, 2026, NMI Holdings had a market capitalization of $2.91 billion, with a trailing twelve-month revenue of $716.41 million and net income of $385.70 million, reflecting stable performance in the private mortgage guaranty insurance sector.
- Financial Performance Analysis: Despite generating $99.3 million in net income and maintaining a diluted EPS of $1.28 in Q1, with insurance-in-force rising to $222.3 billion (up 5% year-over-year), NMI's stock has remained flat over the past year, raising concerns about market perception.
- Investor Focus: The volatility of NMI Holdings' stock contrasts sharply with its strong fundamentals, suggesting that investors may be reallocating capital based on opportunity costs, reflecting uncertainty about the company's long-term performance.
See More
Muhlenkamp & Co. Reduces Stake in NMI Holdings
- Share Reduction Details: Muhlenkamp & Co. sold 101,570 shares of NMI Holdings in Q1, with an estimated transaction value of $3.93 million, reflecting market volatility and a strategic reallocation by investors.
- Position Value Decline: At quarter-end, the fund's position was valued at $13.74 million, down $5.34 million from the previous period, indicating a lack of confidence in NMI's stock due to both sales and price fluctuations.
- Company Financial Performance: NMI Holdings generated $99.3 million in net income in Q1, maintaining a diluted EPS of $1.28, with insurance-in-force rising to $222.3 billion, a 5% year-over-year increase, showcasing the company's solid performance in the insurance market.
- Poor Market Performance: Despite strong fundamentals, NMI's stock has traded sideways over the past year, failing to capitalize on broader market gains, which raises concerns about its future growth potential and suggests investors should be cautious about timing their investments.
See More
NMI Holdings Reports Record Q1 2026 Earnings and Growth
- Strong Performance: NMI Holdings achieved a record revenue of $183.5 million in Q1 2026, up from $152.5 million in the previous quarter, demonstrating robust performance in its insurance operations and solidifying its market position.
- Portfolio Expansion: The company reported $12.3 billion in new insurance written for Q1, a decrease from $14.2 billion in Q4, yet maintained a total insurance-in-force of $222.3 billion, indicating ongoing growth potential in the market.
- Stock Buyback Program: In Q1, NMI Holdings repurchased $27.7 million of common stock, retiring 716,000 shares at an average price of $38.65, which not only enhances earnings per share but also reflects the company's confidence in its intrinsic value.
- Risk Management Strategy: Despite strong results, management remains vigilant regarding macro risks, emphasizing a proactive approach to pricing, risk selection, and reinsurance decisions to ensure resilience in an uncertain market environment.
See More
NMI Holdings Q1 Earnings Exceed Expectations
- Earnings Beat: NMI Holdings reported a Q1 non-GAAP EPS of $1.28, exceeding expectations by $0.05, indicating a strengthening profitability that may attract more investor interest.
- Significant Revenue Growth: The company achieved revenue of $183.48 million in Q1, a 5.9% year-over-year increase, surpassing expectations by $720,000, reflecting robust performance in the insurance market and sustained demand.
- Insurance Expansion: NMI Holdings has $221.4 billion in insurance-in-force, showcasing strategic decisions to expand market share and scale operations, which is expected to drive future revenue growth.
- Long-Term Return Goals: The company targets mid-teens returns through 2026, demonstrating confidence in future market performance and potentially attracting investors seeking stable returns.
See More
NMI Holdings Executive Exercises Options and Sells Shares
- Options Exercise and Share Sale: NMI Holdings Executive Chairman Bradley Shuster exercised 55,158 options and immediately sold 19,430 common shares for a total transaction value of approximately $756,000, demonstrating effective liquidity management.
- Shareholding Changes: Post-transaction, Shuster holds 415,411 shares directly and 47,150 shares indirectly, totaling 462,561 shares, indicating continued confidence in the company's future prospects.
- Tax Management Strategy: In this transaction, 35,728 shares were withheld for taxes while the remaining shares were sold in the open market, reflecting common liquidity and tax management practices following option vesting.
- Market Environment Consideration: Despite NMI Holdings achieving a net income of $388.9 million in FY 2025 and maintaining a strong insurance portfolio, the elevated mortgage rate of 6.38% poses challenges to market demand, prompting investors to monitor future policy changes and interest rate trends.
See More
Shuster Exercises Options and Sells Shares for Tax Purposes
- Transaction Overview: On March 5, 2026, Shuster exercised 55,158 options and sold 19,430 common shares for approximately $756,000 at a price of $38.91 per share, indicating a strategic liquidity management approach to his holdings.
- Holding Adjustment: This transaction reduced Shuster's direct holdings by 4.03%, yet he retains 415,411 common shares and 47,150 shares via trust, reflecting ongoing confidence in the company's future prospects.
- Market Environment Analysis: NMI Holdings reported a net income of $388.9 million for 2025, demonstrating resilience in a challenging market with mortgage rates averaging 6.38%, showcasing the company's stable profitability.
- Investor Focus: NMI's business model relies on private mortgage insurance, generating steady fee-based income, and investors should monitor mortgage rate fluctuations and policy changes to assess future market demand.
See More
Muhlenkamp Reduces Stake in NMI Holdings
- Share Reduction Details: Muhlenkamp & Co sold 101,570 shares of NMI Holdings in Q1 2026, with an estimated transaction value of $3.93 million, indicating a loss of confidence as its stake dropped from 5.1% to 3.62% of AUM.
- Market Cap and Revenue Data: As of May 5, 2026, NMI Holdings had a market capitalization of $2.91 billion, with a trailing twelve-month revenue of $716.41 million and net income of $385.70 million, reflecting stable performance in the private mortgage guaranty insurance sector.
- Financial Performance Analysis: Despite generating $99.3 million in net income and maintaining a diluted EPS of $1.28 in Q1, with insurance-in-force rising to $222.3 billion (up 5% year-over-year), NMI's stock has remained flat over the past year, raising concerns about market perception.
- Investor Focus: The volatility of NMI Holdings' stock contrasts sharply with its strong fundamentals, suggesting that investors may be reallocating capital based on opportunity costs, reflecting uncertainty about the company's long-term performance.
See More
Muhlenkamp & Co. Reduces Stake in NMI Holdings
- Share Reduction Details: Muhlenkamp & Co. sold 101,570 shares of NMI Holdings in Q1, with an estimated transaction value of $3.93 million, reflecting market volatility and a strategic reallocation by investors.
- Position Value Decline: At quarter-end, the fund's position was valued at $13.74 million, down $5.34 million from the previous period, indicating a lack of confidence in NMI's stock due to both sales and price fluctuations.
- Company Financial Performance: NMI Holdings generated $99.3 million in net income in Q1, maintaining a diluted EPS of $1.28, with insurance-in-force rising to $222.3 billion, a 5% year-over-year increase, showcasing the company's solid performance in the insurance market.
- Poor Market Performance: Despite strong fundamentals, NMI's stock has traded sideways over the past year, failing to capitalize on broader market gains, which raises concerns about its future growth potential and suggests investors should be cautious about timing their investments.
See More
NMI Holdings Reports Record Q1 2026 Earnings and Growth
- Strong Performance: NMI Holdings achieved a record revenue of $183.5 million in Q1 2026, up from $152.5 million in the previous quarter, demonstrating robust performance in its insurance operations and solidifying its market position.
- Portfolio Expansion: The company reported $12.3 billion in new insurance written for Q1, a decrease from $14.2 billion in Q4, yet maintained a total insurance-in-force of $222.3 billion, indicating ongoing growth potential in the market.
- Stock Buyback Program: In Q1, NMI Holdings repurchased $27.7 million of common stock, retiring 716,000 shares at an average price of $38.65, which not only enhances earnings per share but also reflects the company's confidence in its intrinsic value.
- Risk Management Strategy: Despite strong results, management remains vigilant regarding macro risks, emphasizing a proactive approach to pricing, risk selection, and reinsurance decisions to ensure resilience in an uncertain market environment.
See More
NMI Holdings Q1 Earnings Exceed Expectations
- Earnings Beat: NMI Holdings reported a Q1 non-GAAP EPS of $1.28, exceeding expectations by $0.05, indicating a strengthening profitability that may attract more investor interest.
- Significant Revenue Growth: The company achieved revenue of $183.48 million in Q1, a 5.9% year-over-year increase, surpassing expectations by $720,000, reflecting robust performance in the insurance market and sustained demand.
- Insurance Expansion: NMI Holdings has $221.4 billion in insurance-in-force, showcasing strategic decisions to expand market share and scale operations, which is expected to drive future revenue growth.
- Long-Term Return Goals: The company targets mid-teens returns through 2026, demonstrating confidence in future market performance and potentially attracting investors seeking stable returns.
See More
NMI Holdings Executive Exercises Options and Sells Shares
- Options Exercise and Share Sale: NMI Holdings Executive Chairman Bradley Shuster exercised 55,158 options and immediately sold 19,430 common shares for a total transaction value of approximately $756,000, demonstrating effective liquidity management.
- Shareholding Changes: Post-transaction, Shuster holds 415,411 shares directly and 47,150 shares indirectly, totaling 462,561 shares, indicating continued confidence in the company's future prospects.
- Tax Management Strategy: In this transaction, 35,728 shares were withheld for taxes while the remaining shares were sold in the open market, reflecting common liquidity and tax management practices following option vesting.
- Market Environment Consideration: Despite NMI Holdings achieving a net income of $388.9 million in FY 2025 and maintaining a strong insurance portfolio, the elevated mortgage rate of 6.38% poses challenges to market demand, prompting investors to monitor future policy changes and interest rate trends.
See More
Shuster Exercises Options and Sells Shares for Tax Purposes
- Transaction Overview: On March 5, 2026, Shuster exercised 55,158 options and sold 19,430 common shares for approximately $756,000 at a price of $38.91 per share, indicating a strategic liquidity management approach to his holdings.
- Holding Adjustment: This transaction reduced Shuster's direct holdings by 4.03%, yet he retains 415,411 common shares and 47,150 shares via trust, reflecting ongoing confidence in the company's future prospects.
- Market Environment Analysis: NMI Holdings reported a net income of $388.9 million for 2025, demonstrating resilience in a challenging market with mortgage rates averaging 6.38%, showcasing the company's stable profitability.
- Investor Focus: NMI's business model relies on private mortgage insurance, generating steady fee-based income, and investors should monitor mortgage rate fluctuations and policy changes to assess future market demand.
See More
