Stock Track | NMI Holdings Stock Plunges Despite Record Earnings on Rising Defaults

Stock Track

Nov 07, 2024

Shares of NMI Holdings Inc (NASDAQ:NMIH) plummeted by 5.91% on Wednesday, despite the company reporting record financial results for the third quarter of 2024. The stock's decline came as investors focused on the rising default rate and higher claims expense, overshadowing the strong top-line and bottom-line growth.

NMI Holdings, a leading provider of private mortgage insurance, reported total revenue of $166.1 million for the third quarter, a record high. The company also achieved a GAAP net income of $92.8 million, or $1.15 per diluted share, representing a robust 17.5% return on equity.

However, the company's default rate increased to 87 basis points at the end of the third quarter, up from 76 basis points in the previous quarter. Additionally, claims expense surged to $10.3 million, compared to just $276,000 in the second quarter. This increase in defaults and claims raised concerns among investors about the potential impact on future profitability.

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The stock's decline came as investors focused on the rising default rate and higher claims expense, overshadowing the strong top-line and bottom-line growth.</p>\n\n<p>NMI Holdings, a leading provider of private mortgage insurance, reported total revenue of $166.1 million for the third quarter, a record high. The company also achieved a GAAP net income of $92.8 million, or $1.15 per diluted share, representing a robust 17.5% return on equity.</p>\n\n<p>However, the company's default rate increased to 87 basis points at the end of the third quarter, up from 76 basis points in the previous quarter. Additionally, claims expense surged to $10.3 million, compared to just $276,000 in the second quarter. This increase in defaults and claims raised concerns among investors about the potential impact on future profitability.</p>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NMIH","symbol_name":"NMI Holdings Inc.","start_time":0,"source_url":"","article_id":"1159339477","we_media_id":"1086803395","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1159339477","pubTimestamp":1730990087,"columns":[],"sourceInfo":{"source_id":"ai_movement_en","name":"Stock Track"},"weMediaInfo":{"media_name":"Stock Track","introduction":"Track stock‘s movements and relevant news","home_visible":1,"id":"1086803395","head_image":"https://static.tigerbbs.com/a81accab1e7ee4144dc051f71903a390"},"summary":"Shares of NMI Holdings Inc  plummeted by 5.91% on Wednesday, despite the company reporting record financial results for the third quarter of 2024. The stock's decline came as investors focused on the rising default rate and higher claims expense, overshadowing the strong top-line and bottom-line growth.NMI Holdings, a leading provider of private mortgage insurance, reported total revenue of $166.1 million for the third quarter, a record high. The company also achieved a GAAP net income of $92.8 ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"NMIH":"NMI Holdings Inc."},"translate_title":"尽管违约率上升导致盈利创历史新高，但NMI Holdings股价仍暴跌","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NMIH":1},"content_text":"Shares of NMI Holdings Inc (NASDAQ:NMIH) plummeted by 5.91% on Wednesday, despite the company reporting record financial results for the third quarter of 2024. 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