NMI Holdings Soars 3.13% on Buy Rating, Price Target Hike

NMI Holdings (NMIH) shares surged 3.13% today, marking the third consecutive day of gains, with a cumulative increase of 4.01% over the past three days. The stock price reached its highest level since February 2025, with an intraday gain of 3.37%.

Over the past five years, the strategy of buying NMIH shares after they reached a high and holding for one week delivered strong returns. The strategy achieved an overall return of 91.80%, surpassing the benchmark return of 49.45% by 42.36%. Although the strategy had a maximum drawdown of -17.93% and a Sharpe ratio of 1.30, indicating some risk and moderate returns, the compound annual growth rate (CAGR) was 31.52%, reflecting the strategy's ability to generate consistent returns over the period.

Compass Point has reiterated its buy rating for NMI Holdings, while also increasing its price target from $34.00 to $37.00. This move reflects a positive outlook on the company's future performance and potential for stock appreciation. The increased price target is a strong indicator of the market's confidence in NMI Holdings' growth prospects.

NMI Holdings has shown strong market performance, as evidenced by its recent after-hours gains. The company's stock price increased by 4.98% during after-hours trading, reaching $39.85. This significant increase highlights the market's positive sentiment towards NMI Holdings and its potential for continued growth.