NMI Holdings shares have lost 9.9% over the past year, underperforming the industry's 1.1% decline, as rising defaults and claims expenses weigh on sentiment. The stock trades at a forward price-to-book of 1.08 times, a discount to the industry average of 1.39 times, and carries a Value Score of A. Analysts' average price target of $46.14 implies a 23.1% upside, while consensus estimates project 2026 earnings per share growth of 4.1% and revenue of $744.98 million, up 5.5%. The company's trailing 12-month return on equity of 15.2% and return on invested capital of 12.1% both exceed industry averages, and first-quarter 2026 net insurance written rose 33% year over year to $12.3 billion, driving record primary insurance in force of $222.3 billion. However, claims expense jumped to $20.7 million from $4.5 million a year earlier, and the default rate climbed to 1.17%, while mortgage rates near 6.5% continue to limit affordability. Zacks maintains a Rank #3 (Hold) on the stock.
NMI Holdings IncRising defaults and claims expenses, along with high mortgage rates limiting affordability, weigh on the company's mortgage insurance business.
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