Bank of America Securities analyst Mihir Bhatia has maintained their bullish stance on ACT stock, giving a Buy rating on August 19.
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Mihir Bhatia has given his Buy rating due to a combination of factors including a favorable risk/reward profile and a strong housing credit environment. Enact Holdings is benefiting from prudent underwriting standards, which have kept the quality of new business in check despite challenges like supply and affordability in the housing market. The company is trading approximately at book value, which Bhatia views as an attractive entry point for investors.
Bhatia also notes that Enact Holdings is well-positioned in the current regulatory landscape, particularly with the cautious approach towards GSE privatization, which minimizes disruption risks in the mortgage industry. Furthermore, the performance of mortgage buydowns is in line with fixed-rate loans, alleviating investor concerns about underwriting standards. The company’s strategic reserve management, highlighted by high cure rates post-default, further supports the Buy rating as it indicates strong financial health and resilience.
In another report released on August 19, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $44.00 price target.
Based on the recent corporate insider activity of 48 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ACT in relation to earlier this year.