NMI Holdings Stock Discussion

NMI Holdings Inc (NASDAQ: NMIH)
Target: 51.68
Stop Loss: 30
NMI Holdings, Inc. provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance services, such as primary and pool insurance; and outsourced loan review services to mortgage loan originators. It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lender...

The recent insider share sale at NMI Holdings, despite its profitability and growth, is not viewed positively. The absence of insider purchases in the past year is not overly concerning, but the history of insider sales necessitates careful consideration for any buying decision.

Insider share sales at prices below current value may indicate lack of confidence in the company's valuation. Absence of insider purchases and low insider ownership could raise alignment concerns.

The low P/E ratio of NMI Holdings indicates investor expectations of limited future growth, which justifies a reduced stock price. Until conditions improve, the company's share price may remain around these levels.

Insiders selling stocks below current price and lack of insider purchases in the last year suggests a weak valuation of the company, making their stock a cautious investment consideration.

The market shows optimism as the stock price gain outpaces the EPS growth. With strong momentum and recent better returns, it could be worth a closer look. But, stock and EPS growth doesn't always reflect revenue growth.