This $4 Million NMI Holdings Sale Comes as the Insurer Grows Book Value 15%
Key Points
Muhlenkamp & Co. sold 101,570 shares of NMI Holdings in the first quarter; the estimated trade size was $3.93 million (based on quarterly average prices).
Meanwhile, the quarter-end position value decreased by $5.34 million, reflecting both sales and share price movement.
Post-trade, the fund held 366,219 shares valued at $13.74 million.
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On May 6, 2026, Muhlenkamp reported selling 101,570 shares of NMI Holdings (NASDAQ:NMIH), with an estimated transaction value of $3.93 million based on quarterly average pricing.
What happened
According to an SEC filing dated May 6, 2026, Muhlenkamp & Co reduced its position in NMI Holdings by 101,570 shares during the first quarter. The estimated transaction value for these sales was $3.93 million, calculated using the average closing price for the quarter. At quarter-end, the stake’s value was $13.74 million, down by $5.34 million from the prior period, a figure that reflects both trading and price changes.
What else to know
- Muhlenkamp’s NMI Holdings position fell from 5.1% of AUM in the prior quarter to 3.62% as of March 31, 2026.
- Top five holdings after the filing:
- NYSE: AEM: $28.13 million (7.4% of AUM)
- NYSE: EQT: $25.54 million (6.7% of AUM)
- NYSE: NEM: $25.03 million (6.6% of AUM)
- NYSE: MCK: $23.51 million (6.2% of AUM)
- NASDAQ: RGLD: $22.37 million (5.9% of AUM)
- As of May 5, 2026, NMI Holdings shares were priced at $37.66, roughly flat over the past year and well lagging the S&P 500 by 28 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close 2026-05-05) | $37.66 |
| Market Capitalization | $2.91 billion |
| Revenue (TTM) | $716.41 million |
| Net Income (TTM) | $385.70 million |
Company Snapshot
- NMI Holdings provides private mortgage guaranty insurance and outsourced loan review services to mortgage loan originators.
- The firm generates revenue primarily from insurance premiums and related service fees, leveraging risk assessment and underwriting expertise.
- It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-based lenders, and other non-bank lenders.
NMI Holdings, Inc. is a specialty insurer focused on private mortgage guaranty solutions for the U.S. housing finance market. The company leverages disciplined risk management and underwriting capabilities to support lenders and investors seeking credit protection on residential mortgages. With a scalable platform, NMI Holdings targets a diverse set of institutional clients, positioning itself as a key partner in mortgage risk transfer and loan origination support.
What this transaction means for investors
There’s a notable disconnect going on with NMI Holdings, the parent of National Mortgage Insurance Corporation. In the first quarter, NMI generated $99.3 million in net income and maintained diluted EPS of $1.28. Insurance-in-force climbed to $222.3 billion, up 5% year over year, while total revenue increased 6% to $183.5 million. The company also continued improving efficiency, with its expense ratio falling to 19.8% from 20.2% a year ago, and its book value per share excluding unrealized gains rose 15% year over year to $35.46.
Despite its solid fundamentals, however, NMI’s stock has been frustratingly volatile: While the broader market ripped higher over the past year, NMI shares have mostly traded sideways and are ultimately flat for the past year, even as the company continued putting up strong underwriting and profitability numbers. With that in mind, it may be that this isn’t necessarily a call on NMI’s performance, but one investor seemingly looking to allocate capital based on opportunity costs.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends EQT. The Motley Fool recommends McKesson and NMI Holdings. The Motley Fool has a disclosure policy.
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