NMI Holdings, Inc. (NASDAQ:NMIH)

NMI Holdings Inc. is a company that provides mortgage guaranty insurance services in the U.S.

For a fee, NMI agrees to cover a certain percentage of the total value of a mortgage loan.

This protects lenders and investors against losses related to a borrower’s default.

NMI has learned volumes from the housing market blowup ten years ago.

And it’s set itself up for success…

The company doesn’t deal in the bad, subprime mortgages that contributed to the last crisis. The majority of its loans have high credit quality.

NMI’s loans are spread out wide among a variety of lenders and geographic locations.

And roughly 80% of its insurance is on underwritten or validated loans – meaning loans backed by strong sources of capital.

The company’s results speak for themselves…

Annual revenue has increased every year since NMI was founded in 2011.

In the first quarter alone, revenue grew 35% year-over-year. And earnings per share surged just over 40% from same period last year.

Fueled by these riveting results, the stock has SOARED.

Over the last five years, shares have gained 165% – outperforming the S&P 500, which grew just 47%.

And the rally is just getting started…

In the last quarter, 43 institutions opened up new positions in NMIH.

And these firms have recently taken out HUGE positions…

Loomis Sayles & Company LP bought 505,781 shares, dropping more than $13 million on the shares.

Victory Capital Management Inc. purchased 228,601 shares. That’s an almost $6 million investment.

And legendary hedge fund Two Sigma Investments, LP bought 168,535 shares.

The smart money is sending a major message…

The housing market is exploding higher, and NMI is one of the best opportunities to play the upside.