Muhlenkamp & Co has reduced its stake in NMI Holdings (NMIH) by 101,570 shares, valued at approximately $3.93 million, according to an SEC filing on May 6, 2026. This move decreased their holdings from 5.1% to 3.62% of assets under management (AUM) as of March 31, 2026, reflecting a broader trend of declining value for NMI, which has seen its stake drop by $5.34 million over the quarter.
Despite NMI Holdings reporting a solid first quarter with $99.3 million in net income and a 6% increase in total revenue, the stock has remained flat over the past year, lagging the S&P 500 by 28 percentage points. The company’s fundamentals appear strong, with improvements in efficiency and a growing insurance-in-force, yet market sentiment has not translated into stock performance.
Investors should note that Muhlenkamp’s divestment could signal a tactical shift rather than a reflection of NMI’s underlying business health, suggesting a focus on reallocating capital to more favorable opportunities amidst stagnant stock performance.
Source: fool.com