2024-02-18 10:54:49 ET
Summary
- NMI Holdings is a private mortgage insurer that insures Fannie Mae and Freddie Mac against default risk on home mortgage loans.
- The company reported strong earnings with EPS beating estimates and cash EPS increasing by 21%.
- NMIH's outlook is positive, with expected growth in insurance premiums earned, investment income, and stock buybacks.
- Investors are giving mortgage credit managers far lower valuations than managers of auto, credit card, and other personal loan credit.
- My target price of $45 is up more than 50% from the current price.
What is a NMI Holdings?
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Buy NMI Holdings: Home Mortgage Credit Managers Are Getting Cheap