NMI stock: buy or sell?

NMIH stock price: $26.56 -3.24% At close on February 25th, 2020

Updated on:
February 25th, 2020

1

NMI ended today at $26.56 and eased a horrible -3.24%. With Tuesday it's been 4 sliding days in a row, loosing $-3.10 (-10.51%). On Feb 13th NMIH plunged a spooky -5.69%.

NMI Holdings, Inc., through its subsidiaries, provides private mortgage guaranty insurance services in the United States.

Should I buy NMI stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to choose your own trading plan that fits your character as inversor. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, NMI stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean NMIH will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is NMI stock a buy?

Banks and financial institutions publish stock ratings everyday. Unfortunately, we couldn't detect any rating for NMIH stock for the last 30 days.

NMI stock analysis

Daily outlook

Shares of NMI closed today at $26.56 and eased a horrible -3.24%.

Shares of NMI eased a horrible -3.24% and closed at $26.56. Since Thursday when NMIH stock price broke down the SMA200d line, it slid $-3.10 per share (-10.45%). Since October when SMA50d and SMA100d crossed up, NMIH price slipped $-2.81 per share (-9.57%). On December, NMIH hit a new all time high, pushing higher than on December tops. Check different trading setups that use ATHs as triggers.

NMIH stock chart (daily)

Weekly outlook

NMI shares plunged -6.74% this week, ending at $26.56. For 3 weeks in a row, price slid and lost a -22.68%. Early February NMIH climbed a phenomenal 5.56% in just one week.

Not so far away is the last price record NMI marked by mid December 2019, but since then it dropped a 25.79%. Since mid February, when NMIH stock price broke down the 40-weeks moving avarage line, it slid $-7.24 per share (-21.42%). Trading stocks that are below the 40-weeks (that is, 200-days) moving average mark is not recommended by many experts, as it indicates that the stock has not enough institutional support.

NMIH stock chart (weekly)

NMI stock price history

NMI stock went public on November 8th, 2013 with a price of $14.001. Since then, NMIH stock surged a 89.70%, with an average of 15.00% per year. If you had invested right after NMIH's IPO a $1,000 in NMI stock in 2013, it would worth $897.00 today.

1: Adjusted price after possible price splits or reverse-splits.

NMI stock historical price chart

NMIH stock reached all-time highs on December with a price of $35.79.

NMI stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we have not found any price prediction for NMI stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

, NMI presented its financial report, close to analysts' consensus and published a $0.46 Earnings per Share. As soon as we get its posted EPS from the earnings report, we will extend this review.
NMIH earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.1n/a
2017-Q32017-10-300.15n/an/a
2017-Q4-n/a0.2n/a
2018-Q12018-05-010.270.3425.9%
2018-Q22018-08-010.330.421.2%
2018-Q32018-10-300.410.4612.2%
2018-Q42019-02-120.450.462.2%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw an astounding increase of 53.17% to $273.63 M dollars. When comparing 2018 vs 2017, in line, profit margin (that is, the net income divided by revenues) skyrocketed a 27.10% to 39.44%.

NMIH annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$7.09 M-$-55.18 M-778.3%-
2014$22 M213.23%$-48.91 M-220.2%-11.37%
2015$54 M141.50%$-27.79 M-51.8%-43.17%
2016$122 M127.31%$66 M54.0%-336.90%
2017$179 M46.53%$22 M12.3%-66.51%
2018$274 M53.17%$108 M39.4%389.46%

Quarterly financial results

NMI reported $79.80 million in sales for 2018-Q4, a 20.36% improvement compared to previous quarter. Reported quarter earnings marked $35.52 M with a profit margin of 44.51%. Profit margin jumped a 7.09% compared to previous quarter when profit margin was 37.42%. When comparing turnover to same quarter last year, NMI sales marked a dazzling increase and boosted a 56.12%.
NMIH quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$42 M-$6 M14.2%-
2017-Q3$48 M14.81%$12 M25.4%104.86%
2017-Q4$51 M5.49%$-2 M-3.5%-114.34%
2018-Q1$60 M17.33%$22 M37.3%-1,365.86%
2018-Q2$68 M12.66%$25 M37.4%12.91%
2018-Q3$66 M-1.87%$25 M37.4%-1.70%
2018-Q4$80 M20.36%$36 M44.5%43.16%
2019-Q1$76 M-5.23%$33 M43.5%-7.38%

NMI ownership

When you are planning to invest in shares of a stock, it's always worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For NMI, 1.97% of all outstanding shares are owned by its staff.

Bearish positions for NMIH stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to NMI:

NMIH
Market cap$1.8 B
Total shares68.4 M
Float shares62.9 M
  - Institutional holdings (%)90.5%
  - Insider holdings (%)2.0%
Shares in short selling0.0%

NMI summary

Tuesday, February 25th, 2020
Open$27.55
Close$26.56
Day range$26.17 - $27.71
Previous close$27.45
Session gain-3.24%
Average true range$1.46
50d mov avg$32.37
100d mov avg$31.52
200d mov avg$29.59
Daily pattern
Weekly pattern

NMI performance

To better understand NMI performance you must becnhmark its gains with other related stocks in same sector or industry. For NMI, the comparison is made against .
Stock3m6m12m
NMIHNMI-20.88%-6.28%8.76%

NMI competitors

Unfortunately, we could not find any public company that could be defined as NMI competitor. This doesn't mean NMI does not have any competitor in the market, it's just we could not detected it.