Bradley Shuster Executes $11.10 “Round‑Trip” Trade – 55,000‑Share Buy at Deep Discount Followed by Market‑Price Sale, Boosting NMI Holdings Stake to 15% Amid Volatility

Insider Activity Spotlight: NMI Holdings Inc.

Current Transaction in Context On February 18, 2026, Executive Chairman Bradley Shuster bought 55,000 shares of NMI Holdings at $11.10, a price far below the prevailing market level of $39.66. This stark discount suggests either a strategic acquisition of additional voting power or a confidence‑boosting move amid a recent earnings beat. Earlier that same day, Shuster sold 55,000 shares at an average of $39.63, effectively closing a short position that had been opened in the days prior. The simultaneous buy and sell on the same day could be a “round‑trip” trade designed to meet regulatory disclosure requirements while preserving net ownership, or it could signal a short‑term profit‑taking strategy amid a broader market downturn.

Implications for Investors The juxtaposition of a deep‑discount purchase with a near‑market sale raises questions about Shuster’s intent. For shareholders, the 55,000‑share buy increases his stake to 470,411 shares, roughly 15 % of outstanding common equity—a significant voting block that can influence strategic decisions. The sale, meanwhile, reduces his post‑transaction holding to 415,411 shares, still a sizable position but smaller than the pre‑sale level. Investors may interpret the buy as a long‑term confidence vote in NMI’s business model, especially given the company’s record revenue and strategic growth announced in the February 11 earnings call. The sale could be viewed as a liquidity event to fund other initiatives or to rebalance his portfolio. The overall effect is a net increase in ownership, suggesting that the Chairman believes the stock is undervalued relative to its fundamentals—price‑to‑earnings of 8.06 and a modest price‑to‑book premium.

What This Means for NMI’s Future The timing of Shuster’s transactions aligns with a period of market volatility, as NMI’s share price fell 3.08 % in the week leading up to the filing and sits near the lower end of its 52‑week range. A large insider purchase during such a dip can be a bullish signal, potentially encouraging other investors to buy. Moreover, the Chairman’s ownership stake—now over 15 %—may give him leverage to push through new capital‑raising initiatives or strategic acquisitions that could expand NMI’s national footprint. However, the simultaneous sale of 55,000 shares could dampen enthusiasm, suggesting that the Chairman is not fully committed to a long‑term stake. Market participants will likely watch subsequent trading for signs of continued insider buying or selling, as this will clarify the true sentiment behind the current move.

Bradley Shuster: A Transaction Profile Shuster’s recent trading pattern reveals a mix of buying and selling with a net inclination toward accumulation. Over the past week, he has sold a total of 17,818 shares (across two 55,000‑share sales and smaller sales earlier in the month) and purchased 24,437 shares via restricted stock units, netting a net increase of approximately 6,619 shares. The 55,000‑share sale on February 12 and the 55,000‑share sale on February 18 are both executed at or near the market price, indicating a willingness to liquidate positions quickly when the price is favorable. The 55,000‑share purchase at $11.10 is an outlier, suggesting a tactical accumulation at a deeply discounted price. Historically, Shuster has held a modest 47,150 shares as a baseline, with periodic increments that coincide with earnings reports or major corporate announcements. This pattern suggests that he uses insider trades as a way to signal confidence during periods of market uncertainty rather than as a routine portfolio rebalancing exercise.

Conclusion For investors in NMI Holdings, Shuster’s latest round‑trip trade is a nuanced signal. The deep‑discount purchase hints at a belief in the company’s long‑term value, while the sizable sale could be a liquidity maneuver or a short‑term profit. The net increase in his stake gives him considerable influence over corporate governance, potentially steering the company toward growth initiatives. As the stock continues to trade near its 52‑week low, the Chairman’s actions will be closely watched by market participants seeking to gauge whether the company’s valuation aligns with its earnings potential and strategic trajectory.