Enact Holdings (ACT)
NASDAQ:ACT
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Enact Holdings
(NASDAQ:ACT)
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Rating:82Outperform
Price Target:
$49.00
▲(14.25% Upside)
Action:ReiteratedDate:02/28/26
Overall score driven primarily by strong financial performance (high profitability, low leverage, solid cash generation) and attractive valuation (low P/E plus ~2% yield). Earnings call commentary further supports the score via sizable planned capital returns and improved credit performance, while technicals are supportive but not strongly bullish and near-term operational headwinds (persistency/delinquency trends) temper upside.
Positive Factors
Capital Strength
A 162% PMIERs sufficiency and ~$1.9B of third-party CRT capital provide a durable regulatory buffer and financial flexibility. This strengthens underwriting capacity, supports sustained capital returns and repurchases, and reduces the chance of forced capital actions across 2–6 months of stress.
Negative Factors
Persistency
Persistency falling to 80% shortens average premium tails, reducing future net premium revenue and investment income per loan. If refinance activity or rate shifts persist, revenue durability and profitability per issued policy will be structurally weaker over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Capital Strength
A 162% PMIERs sufficiency and ~$1.9B of third-party CRT capital provide a durable regulatory buffer and financial flexibility. This strengthens underwriting capacity, supports sustained capital returns and repurchases, and reduces the chance of forced capital actions across 2–6 months of stress.
Read all positive factors
Enact Holdings (ACT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.20B
Dividend Yield2.02%
Average Volume (3M)278.68K
Price to Earnings (P/E)8.7
Beta (1Y)0.50
Revenue Growth2.83%
EPS Growth3.28%
CountryUS
Employees421
SectorFinancial
Sector Strength70
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)1.22
Shares Outstanding141,186,700
10 Day Avg. Volume349,492
30 Day Avg. Volume278,682
Financial Highlights & Ratios
PEG Ratio2.74
Price to Book (P/B)1.10
Price to Sales (P/S)4.78
P/FCF Ratio8.12
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue5.16
Enterprise Value/Gross Profit6.59
Enterprise Value/Ebitda7.01
Forecast
1Y Price Target
$46.75Price Target Upside9.00% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)4.81
Revenue Forecast (FY)$1.27B
Enact Holdings Business Overview & Revenue Model
Company Description
Enact Holdings, Inc. operates as a private mortgage insurance company in the United States. The company is involved in writing and assuming residential mortgage guaranty insurance. It offers private mortgage insurance products primarily insuring p...
How the Company Makes Money
Enact Holdings generates revenue primarily through the sale of mortgage insurance policies, which are designed to protect lenders against losses in the event of borrower default. The company charges premiums for these insurance policies, which can...
Enact Holdings Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive tone: strong capital returns (>$500M), record insurance-in-force ($273B), improved credit outcomes (net reserve release $60M and loss ratio down to 7%), stable investment yield improvement, and robust capital metrics (PMIERs 162%). Offsetting items are modest: persistency softened (80%), sequentially higher delinquencies, a small YoY decline in full-year adjusted operating income (~4.2%), and a Q4 uptick in operating expenses. Management reiterated disciplined capital allocation, a new $500M repurchase authorization, and confidence in 2026 capital returns (~$500M) while noting macro and regulatory uncertainty. Overall, positives materially outweigh the listed headwinds.Positive Updates
Strong Q4 and Full-Year Earnings
Q4 adjusted operating income of $179 million ($1.23 per diluted share) and full-year adjusted operating income of $688 million ($4.61 per diluted share). Q4 adjusted operating EPS increased vs. prior-year quarter ($1.23 vs. $1.09) and vs. Q3 2025 ($1.12). Adjusted operating ROE was 13.5% in Q4.
Negative Updates
Persistency Decline
Persistency declined to 80% in Q4 (down 3 percentage points sequentially and down 2 points YoY), driven by lower prevailing mortgage rates and increased refinance activity.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q4 and Full-Year Earnings
Q4 adjusted operating income of $179 million ($1.23 per diluted share) and full-year adjusted operating income of $688 million ($4.61 per diluted share). Q4 adjusted operating EPS increased vs. prior-year quarter ($1.23 vs. $1.09) and vs. Q3 2025 ($1.12). Adjusted operating ROE was 13.5% in Q4.
Read all positive updates
Company Guidance
Guidance centered on returning approximately $500 million of capital in 2026 (subject to business performance, loss experience, macro and regulatory developments), supported by a Board‑authorized $500 million share repurchase program and a quarterly dividend of $0.21 per share (payable March 19); operating expense guidance of $215–$220 million for 2026 (ex‑reorg); an expectation that the base premium rate (39.6 bps in Q4) will be relatively flat versus 2025 (net earned premium rate was 34.8 bps in Q4); an outlook informed by a projected MI market increase of roughly 10–15% year‑over‑year and the company’s strong capital position (PMIERs sufficiency 162%, ~$1.9 billion above requirement, with ~$1.9 billion third‑party CRT capital credit), while investment yields remain attractive (new‑money yield ~5%, portfolio book yield 4.4%) and Q4/FY operating and origination metrics (Q4 NIW $14B; FY new insurance written $52B; insurance in‑force $273B) provide the backdrop for the plan.Enact Holdings Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
79
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.23B | 1.20B | 1.15B | 1.09B | 1.12B |
| Gross Profit | 1.12B | 940.31M | 903.38M | 949.75M | 748.55M |
| EBITDA | 908.79M | 929.22M | 903.38M | 949.92M | 746.23M |
| Net Income | 674.24M | 688.07M | 665.51M | 704.16M | 546.68M |
Balance Sheet | |||||
| Total Assets | 6.89B | 6.55B | 6.22B | 5.74B | 5.91B |
| Cash, Cash Equivalents and Short-Term Investments | 582.49M | 599.43M | 615.68M | 513.77M | 425.83M |
| Total Debt | 744.48M | 760.32M | 768.68M | 771.26M | 775.82M |
| Total Liabilities | 1.54B | 1.55B | 1.59B | 1.63B | 1.81B |
| Stockholders Equity | 5.36B | 5.00B | 4.63B | 4.10B | 4.11B |
Cash Flow | |||||
| Free Cash Flow | 724.52M | 686.26M | 632.04M | 567.13M | -113.53M |
| Operating Cash Flow | 724.52M | 686.26M | 632.04M | 560.51M | 572.12M |
| Investing Cash Flow | -226.38M | -320.51M | -229.40M | -220.25M | -398.78M |
| Financing Cash Flow | -515.08M | -382.00M | -300.73M | -252.31M | -200.29M |
Enact Holdings Technical Analysis
Positive
42.89
Price Trends
41.63
Positive
40.47
Positive
38.43
Positive
Market Momentum
0.36
Negative
63.10
Neutral
55.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACT, the sentiment is Positive. The current price of 42.89 is above the 20-day moving average (MA) of 41.35, above the 50-day MA of 41.63, and above the 200-day MA of 38.43, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 63.10 is Neutral, neither overbought nor oversold. The STOCH value of 55.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACT.
Enact Holdings Risk Analysis
Enact Holdings disclosed 38 risk factors in its most recent earnings report. Enact Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Enact Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $6.20B | 8.72 | 12.83% | 2.02% | 2.83% | 3.28% | |
82 Outperform | $3.17B | 8.30 | 15.80% | ― | 8.52% | 11.08% | |
78 Outperform | $7.07B | 12.41 | 11.87% | 3.58% | 27.63% | 328.74% | |
76 Outperform | $6.05B | 9.33 | 12.09% | 1.88% | 1.22% | 0.61% | |
75 Outperform | $6.24B | 8.93 | 14.33% | 1.89% | 0.49% | 8.58% | |
70 Outperform | $4.82B | 8.52 | 12.59% | 2.78% | -3.91% | 5.49% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
ACT
Enact Holdings
44.01
9.28
26.71%
FAF
First American Financial
70.51
11.22
18.93%
MTG
MGIC Investment
28.98
4.83
19.98%
RDN
Radian Group
35.91
5.21
16.99%
ESNT
Essent Group
64.29
9.18
16.65%
NMIH
NMI Holdings
41.48
7.84
23.31%
Enact Holdings Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Enact Holdings Announces Strong 2025 Results, New Buyback Plan
Positive
Feb 3, 2026
On February 3, 2026, Enact Holdings reported fourth-quarter and full-year 2025 results showing continued profitability and capital strength, with Q4 GAAP net income of $177 million, or $1.22 per diluted share, and adjusted operating income of $179...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.