NMI Holdings (NMIH): Evaluating Valuation Following Recent Earnings Unveiling Undervalued Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 21 2025
0mins
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 over the next 12 months. According to Wall Street analysts, the average 1-year price target for NMIH is 45.40 USD with a low forecast of 43.00 USD and a high forecast of 49.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 38.040
Low
43.00
Averages
45.40
High
49.00
Current: 38.040
Low
43.00
Averages
45.40
High
49.00
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. It offers two principal types of MI coverage, primary and pool. 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). Pool insurance is generally used to provide additional credit enhancement for certain secondary market mortgage transactions. It offers outsourced loan review services to mortgage originators through NMIS.
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.
NMI Holdings (NMIH) Shares Oversold with RSI at 28.7
- Oversold Signal: NMI Holdings (NMIH) shares have dropped to $36.38, with an RSI of 28.7, indicating that the recent heavy selling may be nearing exhaustion, thus presenting potential buying opportunities for investors.
- Market Comparison: Compared to the S&P 500 ETF (SPY) with an RSI of 59.5, NMIH's oversold condition may attract bullish investors looking for entry points to capitalize on a potential rebound.
- Historical Performance: NMIH's 52-week low is $31.90 and the high is $43.20, with the current trading price at $36.39, reflecting its performance within this range and potentially influencing investor decisions.
- Investor Sentiment: Despite being in an oversold territory, investors should cautiously assess market sentiment and future trends to avoid making erroneous decisions in an uncertain market environment.
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NMIH Stock Fluctuation: 52-Week Low at $31.90, High at $43.20
- Stock Price Analysis: NMIH's 52-week low is $31.90, with a high of $43.20, and the last trade at $37.83 indicates price fluctuations within this range, reflecting market caution regarding its future performance.
- Market Trend Observation: The current price of $37.83 is close to the 52-week low, which may attract investor attention to its future trajectory, especially amid an uncertain overall market environment.
- Technical Indicator Focus: NMIH's stock price has fallen below the 200-day moving average, potentially signaling further downside risk in the short term, prompting investors to closely monitor subsequent market reactions.
- Investor Sentiment Assessment: Despite the current price being in a fluctuating range, market opinions on NMIH remain divided, necessitating cautious decision-making by investors based on technical indicators and market trends.
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