NEW YORK - Barclays (LON:BARC) has recently issued an Overweight recommendation for NMI Holdings Inc (NASDAQ:NMIH), the parent company of U.S.-based National Mortgage Insurance Corporation (National MI). The financial institution foresees a 12.44% potential upside for the company, setting a one-year target price of $32.20, up from the closing price of $28.64.
The current put/call ratio stands at 1.93, suggesting a bearish sentiment among investors. Despite this cautious outlook, NMI Holdings has reported solid financials with projected annual revenues of $547 million, albeit a slight decrease of 2.51% compared to previous figures. The non-GAAP earnings per share (EPS) are anticipated to be $3.71.
In terms of ownership, institutional investors have shown increased interest in NMI Holdings. There has been a 7.12% rise in institutional ownership, with 647 funds now reporting positions in the company. However, it's worth noting that the total number of institutional shares has seen a marginal decline of 0.73%. Despite this, the average portfolio weight allocated to NMIH among these funds has risen by 0.81% to 0.19%.
iShares Core S&P Small-Cap ETF is currently holding 5,862K shares of NMI Holdings, which marks a decrease of 3.99%. Nevertheless, the ETF has boosted its portfolio allocation in NMIH by an impressive 7.68%. Meanwhile, Oaktree Capital Management has kept its stake steady with 4,900K shares.
Other notable investors include Macquarie Group (OTC:MQBKY) and Delaware Small Cap Core Fund, both of which have increased their holdings and portfolio allocations in NMI Holdings by 1.18% (19.88%) and 2.49% (7.23%) respectively.
NMI Holdings continues to play a significant role in the mortgage insurance sector through its subsidiary National MI, amidst varying investor sentiment and market conditions.
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