NMI Holdings Executive VP & Chief Sales Officer Norman Fitzgerald Sells 52% Of Holding

Some NMI Holdings, Inc. (NASDAQ:NMIH) shareholders may be a little concerned to see that the Executive VP & Chief Sales Officer, Norman Fitzgerald, recently sold a substantial US$718k worth of stock at a price of US$35.88 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 52% of their entire holding.

View our latest analysis for NMI Holdings

NMI Holdings Insider Transactions Over The Last Year

The insider, James Jones, made the biggest insider sale in the last 12 months. That single transaction was for US$1.7m worth of shares at a price of US$30.16 each. That means that even when the share price was below the current price of US$35.80, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 34% of James Jones's stake.

NMI Holdings insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of NMI Holdings

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.8% of NMI Holdings shares, worth about US$49m. 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. Looking to the last twelve months, our data doesn't show any insider buying. But since NMI Holdings is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - NMI Holdings has 1 warning sign we think you should be aware of.

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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.