William J. Leatherberry, the Chief Administrative Officer & General Counsel at NMI Holdings, Inc. (NASDAQ:NMIH), has sold a total of 5,000 shares of the company's common stock in two separate transactions on August 26 and 27, according to a recent SEC filing. The stock was sold at prices ranging from $40.00 to $40.07 per share, resulting in a total transaction value of over $200,210.
The first transaction on August 26 involved the sale of 2,000 shares at a price of $40.00, while the subsequent sale on August 27 saw 3,000 shares sold at an average price of $40.07, with the range of sale prices on that day being $40.0601 to $40.08. Following these transactions, Leatherberry's remaining holdings in NMI Holdings include both common shares and unvested restricted stock units, totaling 153,689 shares.
Investors often monitor insider sales as they may provide insights into an executive's perspective on the company's current valuation and future prospects. The sales by Leatherberry were executed in open market transactions, which are typically considered a normal part of an insider's portfolio management.
NMI Holdings, Inc., headquartered in Emeryville, California, operates in the surety insurance industry. The company's stock trades on the NASDAQ, and these recent transactions by a high-level executive are likely to be of interest to current and potential investors.
In other recent news, National MI Holdings reported a record-breaking second quarter in 2024, surpassing the $200 billion mark in high-quality insurance in force for the first time. The company's total revenue reached $162.1 million, with GAAP net income hitting $92.1 million, or $1.13 per diluted share. Adjusted net income also increased to $97.6 million, or $1.20 per diluted share, representing an 11% and 26% rise from Q1 and Q2 of 2023, respectively.
National MI's operational efficiency was highlighted by a record low expense ratio of 20.1%. The company also completed refinancing activities, issuing $425 million in senior unsecured notes and renewing a $250 million credit facility. In addition, National MI repurchased $26.8 million of common stock, with a remaining repurchase capacity of $124.9 million.
These recent developments are part of National MI's strategic financial management, which has resulted in a robust balance sheet and a commitment to shareholder value. The company's positive outlook is underscored by its confidence in its customer franchise, talented team, and earnings power. However, the company anticipates some growth in net operating expenses due to investments in people, systems, and risk management strategies. Despite this, National MI remains confident in their ability to continue delivering growth and value for shareholders.
InvestingPro Insights
Amid the recent insider trading activity at NMI Holdings, Inc. (NASDAQ:NMIH), investors are closely examining the company's financial health and market position. A look at the data from InvestingPro provides a snapshot of NMIH's current standing in the market. With a market capitalization of $3.19 billion and a P/E ratio of 9.31, the company presents itself as a potentially undervalued entity in terms of near-term earnings growth. This is further supported by an adjusted P/E ratio for the last twelve months as of Q2 2024, which stands slightly lower at 9.13.
InvestingPro Tips indicate that analysts have a positive outlook on NMIH, with 8 analysts revising their earnings upwards for the upcoming period. Additionally, the company is trading at a low P/E ratio relative to its near-term earnings growth, which could signal a buying opportunity for value investors. It's also notable that NMIH's liquid assets exceed its short-term obligations, positioning the company well to manage its liabilities.
From a performance standpoint, NMIH has had a strong showing, with a 22.45% total return over the last three months and an impressive 41.38% return over the past year. The company's profitability is also highlighted by InvestingPro Tips, which predict NMIH will maintain profitability this year, building on its profitable track record over the last twelve months.
For investors seeking more comprehensive analysis and additional InvestingPro Tips, there are 9 more tips available that could provide deeper insights into NMIH's performance and potential investment value. The full suite of tips is accessible at InvestingPro's dedicated page for NMI Holdings, providing a valuable resource for those considering an investment in the company.
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