We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NMI Holdings Near 52-Week High: Time to Buy, Sell or Hold the Stock?
Read MoreHide Full Article
Key Takeaways
NMIH's new insurance written rose to $16.1 billion in Q2 2026 from $12.5 billion a year ago.
NMIH's primary IIF increased 5.8% to $227.1 billion, lifting net premiums earned to $157.5 million.
NMIH's loss ratio improved to 8.3%, while PMIERs available assets reached $3.7 billion.
Shares of NMI Holdings Inc. (NMIH - Free Report) have gained 13.4% in the past six months, outperforming the industry’s growth of 6.9%. The stock closed at $42.19 on Wednesday, near its 52-week high of $46.74, reflecting investor confidence.
Image Source: Zacks Investment Research
The stock is also trading above the 200-day simple moving average (SMA) of $40.14, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
NMIH stock performance was supported by rapid insurance in force growth, strong new business generation, higher premiums, lower claims and solid return on equity. Record second-quarter earnings, a strong capital position and ongoing share repurchases further boosted investor confidence. Additionally, the stock’s discounted valuation leaves room for further appreciation.
Shares of other industry players like First American Financial Corporation (FAF - Free Report) and RenaissanceRe Holdings Ltd. (RNR - Free Report) have gained 6.7% and 4.7%, respectively, while Axis Capital Holdings Limited (AXS - Free Report) has lost 2.7% in the past six months.
NMIH’s Average Target Price Suggests Upside
Based on short-term price targets offered by eight analysts, the Zacks average price target is $49.50 per share. The average suggests a potential 16.7% upside from the last closing price.
NMIH’s Attractive Valuation
Shares of NMIH are trading at a discount compared with the industry. Its trailing 12-month price-to-book value of 1.17X is lower than the industry average of 1.42X. The stock 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 (EPS) indicates a year-over-year increase of 6.7%. The consensus estimate for revenues is pegged at $753.80 million, implying a year-over-year improvement of 6.7%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 4.7% and 2.5%, respectively, from the corresponding 2026 estimates. The expected long-term earnings growth rate is 7.1%.
Optimistic Analyst Sentiment on NMIH
The company has seen five upward earnings estimate revisions for 2026 and four for 2027 earnings, over the past 60 days, with no downward revisions. Thus, the Zacks Consensus Estimate for 2026 and 2027 earnings has moved up 2.7% and 2%, respectively, over the same period.
NMIH s’ Favorable Return on Equity
Return on equity for the trailing 12 months was 15.1%, which compared favorably with the industry’s 7.5%, reflecting its efficiency in utilizing shareholders’ funds. Key Points to Note for NMIH
NMIH continues to gain from new business opportunities, resilient housing conditions and sustained demand for private mortgage insurance. New insurance written rose to $16.1 billion in the second quarter of 2026 from $12.5 billion a year ago, supported by strong customer relationships, deeper account penetration and new customer wins. Continued growth in the mortgage insurance market should expand NMIH’s portfolio and support premium and earnings growth.
Growth in IIF remains a key driver for NMIH. In the second quarter, primary insurance in force increased 5.8% year over year to $227.1 billion, reflecting continued growth in its insured portfolio. Supported by this portfolio growth, net premiums earned increased to $157.5 million in the second quarter of 2026 from $149.1 million a year ago. Continued growth in IIF, along with the seasoning of existing policies, should provide a growing base of premium income and support overall earnings.
NMIH continues to benefit from favorable credit performance and expense discipline. The loss ratio improved 70 basis points to 8.3% in the second quarter of 2026, while the default rate remained low at 1.16%. Insurance claims and claim expenses also declined 2.2% year over year to $13.1 million in the second quarter, supporting underwriting profitability. Although defaults are expected to rise seasonally in the second half of 2026, strong portfolio credit quality and lower claims should support margins and earnings growth.
Strong reinsurance capacity helps NMIH manage credit risk and capital requirements. The company uses quota-share, excess-of-loss and insurance-linked note structures, along with the forward-flow capacity of up to three years. Its diversified risk-transfer program provides greater flexibility in managing capital and mortgage-credit exposure.
NMIH maintains a strong capital position and continues to return capital to shareholders. As of June 30, 2026, PMIERs available assets stood at $3.7 billion versus $2.1 billion of required assets. The company repurchased $31.4 million of shares in the second quarter. Meanwhile, ROE was 15.9%, while book value per share, excluding unrealized investment gains, increased 15% year over year to $36.88. Continued buybacks could support EPS and book value growth.
End Notes
NMI Holdings is well-positioned for growth from new primary insurance written, direct primary insurance in force, a comprehensive reinsurance program and credit performance. A strong capital position, along with buybacks, adds to shareholder and book value.
Coupled with higher return on equity, favorable growth estimates, optimistic analyst sentiment and the affordability of shares, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) stock at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
Image: Shutterstock
NMI Holdings Near 52-Week High: Time to Buy, Sell or Hold the Stock?
Key Takeaways
Shares of NMI Holdings Inc. (NMIH - Free Report) have gained 13.4% in the past six months, outperforming the industry’s growth of 6.9%. The stock closed at $42.19 on Wednesday, near its 52-week high of $46.74, reflecting investor confidence.
Image Source: Zacks Investment Research
The stock is also trading above the 200-day simple moving average (SMA) of $40.14, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
NMIH stock performance was supported by rapid insurance in force growth, strong new business generation, higher premiums, lower claims and solid return on equity. Record second-quarter earnings, a strong capital position and ongoing share repurchases further boosted investor confidence. Additionally, the stock’s discounted valuation leaves room for further appreciation.
Shares of other industry players like First American Financial Corporation (FAF - Free Report) and RenaissanceRe Holdings Ltd. (RNR - Free Report) have gained 6.7% and 4.7%, respectively, while Axis Capital Holdings Limited (AXS - Free Report) has lost 2.7% in the past six months.
NMIH’s Average Target Price Suggests Upside
Based on short-term price targets offered by eight analysts, the Zacks average price target is $49.50 per share. The average suggests a potential 16.7% upside from the last closing price.
NMIH’s Attractive Valuation
Shares of NMIH are trading at a discount compared with the industry. Its trailing 12-month price-to-book value of 1.17X is lower than the industry average of 1.42X. The stock 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 (EPS) indicates a year-over-year increase of 6.7%. The consensus estimate for revenues is pegged at $753.80 million, implying a year-over-year improvement of 6.7%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 4.7% and 2.5%, respectively, from the corresponding 2026 estimates. The expected long-term earnings growth rate is 7.1%.
Optimistic Analyst Sentiment on NMIH
The company has seen five upward earnings estimate revisions for 2026 and four for 2027 earnings, over the past 60 days, with no downward revisions. Thus, the Zacks Consensus Estimate for 2026 and 2027 earnings has moved up 2.7% and 2%, respectively, over the same period.
NMIH s’ Favorable Return on Equity
Return on equity for the trailing 12 months was 15.1%, which compared favorably with the industry’s 7.5%, reflecting its efficiency in utilizing shareholders’ funds.
Key Points to Note for NMIH
NMIH continues to gain from new business opportunities, resilient housing conditions and sustained demand for private mortgage insurance. New insurance written rose to $16.1 billion in the second quarter of 2026 from $12.5 billion a year ago, supported by strong customer relationships, deeper account penetration and new customer wins. Continued growth in the mortgage insurance market should expand NMIH’s portfolio and support premium and earnings growth.
Growth in IIF remains a key driver for NMIH. In the second quarter, primary insurance in force increased 5.8% year over year to $227.1 billion, reflecting continued growth in its insured portfolio. Supported by this portfolio growth, net premiums earned increased to $157.5 million in the second quarter of 2026 from $149.1 million a year ago. Continued growth in IIF, along with the seasoning of existing policies, should provide a growing base of premium income and support overall earnings.
NMIH continues to benefit from favorable credit performance and expense discipline. The loss ratio improved 70 basis points to 8.3% in the second quarter of 2026, while the default rate remained low at 1.16%. Insurance claims and claim expenses also declined 2.2% year over year to $13.1 million in the second quarter, supporting underwriting profitability. Although defaults are expected to rise seasonally in the second half of 2026, strong portfolio credit quality and lower claims should support margins and earnings growth.
Strong reinsurance capacity helps NMIH manage credit risk and capital requirements. The company uses quota-share, excess-of-loss and insurance-linked note structures, along with the forward-flow capacity of up to three years. Its diversified risk-transfer program provides greater flexibility in managing capital and mortgage-credit exposure.
NMIH maintains a strong capital position and continues to return capital to shareholders. As of June 30, 2026, PMIERs available assets stood at $3.7 billion versus $2.1 billion of required assets. The company repurchased $31.4 million of shares in the second quarter. Meanwhile, ROE was 15.9%, while book value per share, excluding unrealized investment gains, increased 15% year over year to $36.88. Continued buybacks could support EPS and book value growth.
End Notes
NMI Holdings is well-positioned for growth from new primary insurance written, direct primary insurance in force, a comprehensive reinsurance program and credit performance. A strong capital position, along with buybacks, adds to shareholder and book value.
Coupled with higher return on equity, favorable growth estimates, optimistic analyst sentiment and the affordability of shares, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) stock at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.