NMI Holdings, Inc. (NASDAQ:NMIH) has reported a significant transaction involving its EVP, Chief Sales Officer, Norman Peter Fitzgerald. According to the latest filings, Fitzgerald sold 12,000 shares of the company's Class A Common Shares at an average price of $29.9979, totaling over $359,974.
The sale took place on March 15, 2024, with the price range for the shares sold between $29.93 and $30.095. This transaction has adjusted Fitzgerald’s direct holdings in the company to a total of 42,733 shares, which includes both owned Class A common shares and unvested restricted stock units.
In a related transaction, shares were also withheld by NMI Holdings to satisfy withholding taxes due in connection with the vesting of certain restricted stock units granted to Fitzgerald. This involved 2,187 shares, but no funds were exchanged as these shares were used to cover the tax obligation at a net settlement price equal to the closing stock price on the day of the transaction.
Investors often monitor insider transactions as they may provide insights into a company's financial health and future prospects. Transactions by high-level executives can be particularly noteworthy, as they may reflect the management’s perspective on the company’s valuation and potential.
NMI Holdings, Inc. specializes in surety insurance and operates out of Emeryville, California. The company's stock performance and insider transactions are closely watched by investors seeking to understand market trends and the confidence levels of company executives in their own firm’s outlook.
InvestingPro Insights
Amidst the insider trading activity at NMI Holdings, Inc. (NASDAQ:NMIH), it's worth noting that the company stands out with a compelling valuation metric. The current P/E ratio of 7.69 suggests that the stock is trading at a discount relative to its near-term earnings growth potential. This is further substantiated by the adjusted P/E ratio for the last twelve months as of Q4 2023, which is 7.56, indicating consistency in the company's earnings valuation over time.
Investors might also find reassurance in the company's financial stability, as NMI Holdings' liquid assets are reported to exceed its short-term obligations. This financial cushion could potentially mitigate risks during economic downturns or unexpected market events. Additionally, the company's revenue growth of 10.64% in the last twelve months as of Q4 2023, coupled with a robust gross profit margin of 77.32%, reflects a healthy operational performance.
For those looking to delve deeper into the financials and future prospects of NMI Holdings, there are further InvestingPro Tips available that highlight the company's profitability over the past year and the absence of dividend payments, which might appeal to growth-focused investors. To explore these insights and more, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. With a total of 5 additional InvestingPro Tips available, investors can gain a more comprehensive understanding of NMI Holdings' financial landscape and make more informed decisions.
The next earnings date for NMI Holdings is set for May 1, 2024, which will provide investors with another opportunity to assess the company's performance and future outlook. In the meantime, the current fair value assessments by analysts and InvestingPro stand at $35 USD and $29.97 USD respectively, offering a glimpse into the market's valuation of the company.
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