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NMIH Stock Outperforms Industry, Trades Near 52-Week High: Time to Buy?
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Key Takeaways
NMIH is poised to benefit from new business opportunities in a growing mortgage insurance market.
Growth in monthly and single premium policies is driven by deeper customer penetration and new accounts.
A robust reinsurance program and buybacks support returns, with $226M repurchase authority remaining.
Shares of NMI Holdings Inc. (NMIH - Free Report) have gained 14.5% in the past year against the industry’s decline of 2.2%.
NMIH has outperformed its peers, American Financial Group, Inc. (AFG - Free Report) and W.R. Berkley Corporation (WRB - Free Report) , which have gained 10.9% and 2.6%, respectively, in the past year, while Kinsale Capital Group, Inc. (KNSL - Free Report) has lost 21.7%.
Image Source: Zacks Investment Research
The insurer has a market capitalization of $2.85 billion. The average volume of shares traded in the last three months was 0.4 million.
Shares of NMI Holdings closed at $37.54 on April 2, near its 52-week high of $43.20. This proximity underscores investor confidence. It has the ingredients for further price appreciation.
Earnings of NMI Holdings grew 14.2% in the last five years. NMIH has a solid surprise history. The insurer has a solid track record of beating earnings estimates in three of the last four quarters, while matching in one, with an average of 6.02%.
Attractive Valuation of NMIH
NMI Holdings’ shares are trading at a discount compared to the industry. Its forward price-to-book value of 1.1X is lower than the industry average of 1.39X, the Finance sector’s 4.09X and the Zacks S&P 500 Composite’s 7.73X. Also, it has a Value Score of B.
Image Source: Zacks Investment Research
NMIH’s Encouraging Growth Projection
The Zacks Consensus Estimate for NMI Holdings’ 2026 earnings per share indicates a year-over-year increase of 4.2%. The consensus estimate for revenues is pegged at $740.43 million, implying a year-over-year improvement of 4.8%. The consensus estimate for 2027 earnings per share and revenues indicates an increase of 7.1% and 3.2%, respectively, from the corresponding 2026 estimates.
Average Target Price for NMIH Suggests Upside
Based on short-term price targets offered by seven analysts, the Zacks average price target is $46.29 per share. The average suggests a potential 23.3% upside from the last closing price.
Image Source: Zacks Investment Research
NMI Holdings’ Favorable Return on Capital
Return on equity (ROE) for the trailing 12 months was 15.7%, which compared favorably with the industry’s 7.3%. This reflects its efficiency in utilizing shareholders’ funds.
Key Points to Note for NMIH
NMIH stands to gain from new business opportunities in a growing mortgage insurance market. NMI Holdings’ mortgage insurance portfolio is expected to create a strong foundation for future earnings.
Growth in monthly and single premium policy production is tied to the increased penetration of existing customer accounts. New customer account activation will also drive results.
In order to enhance its return profile, absorb losses, provide efficient growth capital and mitigate the impact of credit volatility, NMI Holdings has a comprehensive reinsurance program for its in-force portfolio.
To drive margin expansion, NMIH remains focused on efficiency and expense management. In February 2025, the board authorized a new $250 million share repurchase program effective through Dec. 31, 2027, and an extension of the existing share repurchase programs through Dec. 31, 2027, to align its remaining tenor with that of the new $250 million program. As of Dec. 31, 2025, it had $226 million of repurchase authority remaining.
All these together should help the insurer continue to generate solid mid-teens shareholders’ returns.
End Notes
NMI Holdings is well-positioned for growth on new primary insurance written, direct primary insurance in force and a comprehensive reinsurance program.
Coupled with the solid growth projections, as well as strong fundamentals and favorable return on capital, as well as optimistic analyst sentiment, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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NMIH Stock Outperforms Industry, Trades Near 52-Week High: Time to Buy?
Key Takeaways
Shares of NMI Holdings Inc. (NMIH - Free Report) have gained 14.5% in the past year against the industry’s decline of 2.2%.
NMIH has outperformed its peers, American Financial Group, Inc. (AFG - Free Report) and W.R. Berkley Corporation (WRB - Free Report) , which have gained 10.9% and 2.6%, respectively, in the past year, while Kinsale Capital Group, Inc. (KNSL - Free Report) has lost 21.7%.
Image Source: Zacks Investment Research
The insurer has a market capitalization of $2.85 billion. The average volume of shares traded in the last three months was 0.4 million.
Shares of NMI Holdings closed at $37.54 on April 2, near its 52-week high of $43.20. This proximity underscores investor confidence. It has the ingredients for further price appreciation.
Earnings of NMI Holdings grew 14.2% in the last five years. NMIH has a solid surprise history. The insurer has a solid track record of beating earnings estimates in three of the last four quarters, while matching in one, with an average of 6.02%.
Attractive Valuation of NMIH
NMI Holdings’ shares are trading at a discount compared to the industry. Its forward price-to-book value of 1.1X is lower than the industry average of 1.39X, the Finance sector’s 4.09X and the Zacks S&P 500 Composite’s 7.73X. Also, it has a Value Score of B.
Image Source: Zacks Investment Research
NMIH’s Encouraging Growth Projection
The Zacks Consensus Estimate for NMI Holdings’ 2026 earnings per share indicates a year-over-year increase of 4.2%. The consensus estimate for revenues is pegged at $740.43 million, implying a year-over-year improvement of 4.8%. The consensus estimate for 2027 earnings per share and revenues indicates an increase of 7.1% and 3.2%, respectively, from the corresponding 2026 estimates.
Average Target Price for NMIH Suggests Upside
Based on short-term price targets offered by seven analysts, the Zacks average price target is $46.29 per share. The average suggests a potential 23.3% upside from the last closing price.
Image Source: Zacks Investment Research
NMI Holdings’ Favorable Return on Capital
Return on equity (ROE) for the trailing 12 months was 15.7%, which compared favorably with the industry’s 7.3%. This reflects its efficiency in utilizing shareholders’ funds.
Key Points to Note for NMIH
NMIH stands to gain from new business opportunities in a growing mortgage insurance market. NMI Holdings’ mortgage insurance portfolio is expected to create a strong foundation for future earnings.
Growth in monthly and single premium policy production is tied to the increased penetration of existing customer accounts. New customer account activation will also drive results.
In order to enhance its return profile, absorb losses, provide efficient growth capital and mitigate the impact of credit volatility, NMI Holdings has a comprehensive reinsurance program for its in-force portfolio.
To drive margin expansion, NMIH remains focused on efficiency and expense management. In February 2025, the board authorized a new $250 million share repurchase program effective through Dec. 31, 2027, and an extension of the existing share repurchase programs through Dec. 31, 2027, to align its remaining tenor with that of the new $250 million program. As of Dec. 31, 2025, it had $226 million of repurchase authority remaining.
All these together should help the insurer continue to generate solid mid-teens shareholders’ returns.
End Notes
NMI Holdings is well-positioned for growth on new primary insurance written, direct primary insurance in force and a comprehensive reinsurance program.
Coupled with the solid growth projections, as well as strong fundamentals and favorable return on capital, as well as optimistic analyst sentiment, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.