NMI Holdings Inc (NMIH) saw its stock price plummet 6.74% in pre-market trading on Wednesday, as investors reacted to a downward revision in the company's target price by a major financial institution.

JP Morgan, a leading investment bank, cut its target price for NMI Holdings from $43 to $42. This adjustment, while seemingly minor, appears to have triggered a significant sell-off among investors, leading to the sharp pre-market decline.

The reduced target price could signal concerns about NMI Holdings' future performance or valuation. While the specific reasons behind JP Morgan's decision were not immediately clear, such moves by prominent financial analysts often prompt investors to reassess their positions, potentially leading to increased selling pressure.

As the market opens, it remains to be seen whether NMI Holdings can recover from this pre-market plunge or if the downward trend will continue throughout the trading session. Investors and analysts will likely be closely monitoring the stock's performance and any additional news or analyst reports that might shed light on the company's prospects.