Stock Price & Analysis

Based on the analysis, NMIH stock is a buy due to the recent analyst upgrade and positive market dynamics. However, consider the mixed insider and institutional sentiment before making a decision.

NMI Holdings (NMIH) is expected to reach a price target of $43 by the end of 2025, driven by strong financial performance and positive analyst sentiment. The stock is currently trading near its Fibonacci pivot point of $35.30, with technical indicators suggesting potential upside. Analysts have upgraded the stock to Outperform, citing its strong return on equity and favorable market dynamics.

The S1 support level for NMIH Stock is $34.36 ,The R1 resistant level for NMIH Stock is $36.25.

As of the end of day on 2025-03-26, the price of NMIH Stock was $36.64.

The target price for NMIH Stock according to analyst rating is 43.17, with the highest price target at 47.00 and the lowest at 41.00. Analysts have a Moderate Buy rating on NMIH Stock overall.

The market cap of NMIH is $2.8B.

Analysis and Insights

To determine whether NMI Holdings (NMIH) is overvalued, we analyze its valuation metrics, recent news, and market sentiment.

Valuation Metrics:

NMIH's current valuation metrics are as follows:

• PE Ratio: 8.05 (Q2 2024)
• EV/EBITDA: 6.22 (Q2 2024)
• PS Ratio: 4.54 (Q2 2024)
• PB Ratio: 1.33 (Q2 2024)
• Dividend Yield: 0% (Q4 2024)

These metrics indicate that NMIH is trading at a moderate valuation relative to its earnings and book value.

Recent News and Analyst Sentiment:

• Analyst Upgrade: Keefe Bruyette upgraded NMIH to Outperform with a $43 price target, citing that the stock is trading at a lower premium than its historical average and deserves a higher valuation.
• Insider Activity: Multiple insider sales have occurred, with executives selling significant portions of their holdings, indicating potential caution among insiders.

Market Sentiment:

• Price Movement: NMIH's stock price has shown a slight decline in regular market hours (-0.17%) and a more significant drop in pre-market (-3.13%).
• Technical Analysis: The stock is currently trading near its support levels, with potential upside if market sentiment improves.

Conclusion:

While NMIH's valuation metrics are reasonable, the insider selling activity raises caution. However, the recent analyst upgrade suggests potential upside. NMIH may not be significantly overvalued, but investors should monitor insider activity and broader market trends.

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.

NMIH stock could reach $60 by 2030, driven by strong financials and analyst upgrades. Current price is $36.08, with a $43 target, supported by temporary market benefits.

NMIH has a total of 238 employees.