Independent Director Michael Embler Sold A Bunch Of Shares In NMI Holdings

Some NMI Holdings, Inc. (NASDAQ:NMIH) shareholders may be a little concerned to see that the Independent Director, Michael Embler, recently sold a substantial US$738k worth of stock at a price of US$36.90 per share. That sale reduced their total holding by 32% which is hardly insignificant, but far from the worst we've seen.

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NMI Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the President, Adam Pollitzer, for US$2.1m worth of shares, at about US$36.54 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$38.12. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 23% of Adam Pollitzer's holding.

In the last year NMI Holdings insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for NMI Holdings

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Insider Ownership Of NMI Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.6% of NMI Holdings shares, worth about US$47m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The NMI Holdings Insider Transactions Indicate?

Insiders haven't bought NMI Holdings stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since NMI Holdings is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of NMI Holdings.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.