5 Most Undervalued Small-Cap Stocks To Buy According To Hedge Funds

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In this article, we will take a look at the 5 most undervalued small-cap stocks to buy according to hedge funds. To see more such companies, go directly to 15 Most Undervalued Small-Cap Stocks To Buy According To Hedge Funds.

5. NMI Holdings, Inc. (NASDAQ:NMIH)

Number of Hedge Fund Holders: 21

NMI Holdings, Inc. (NASDAQ:NMIH) is a mortgage guaranty insurance services company. In November, NMI Holdings, Inc. (NASDAQ:NMIH) posted its third quarter results. NMI Holdings, Inc. (NASDAQ:NMIH)’s adjusted EPS in the third quarter totaled $0.90, beating estimates by $0.09. Revenue in the quarter came in at $130.58 million, which showed a 5.3% growth on a YoY basis. However, revenue missed estimates by $4.84 million.

A total of 21 hedge funds out of the 920 funds tracked by Insider Monkey reported owning stakes in NMI Holdings, Inc. (NASDAQ:NMIH) at the end of the third quarter. The total value of these stakes was $153 million.

In December, investment firm BTIG analyst Eric Hagen downgraded NMI Holdings, Inc. (NASDAQ:NMIH), along with several other mortgage stocks, to Neutral amid higher interest rates. The analyst, however, noted that NMI Holdings, Inc. (NASDAQ:NMIH) can deliver “one of the strongest ROEs” in 2023.

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