Enact Holdings (ACT)
NASDAQ:ACT
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Enact Holdings
(NASDAQ:ACT)
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Rating:80Outperform
Price Target:
$49.00
▲(14.25% Upside)
Action:Reiterated
Date:05/16/26
Overall score is driven primarily by strong financial quality (high profitability, healthy balance sheet) and supportive earnings-call factors (solid ROE, strong capital position, and meaningful capital returns). Valuation is also favorable with a low P/E and a ~2% dividend yield. Technicals are moderately positive but not strongly trending, and corporate events add limited incremental impact.
Positive Factors
Capital strength & shareholder returns
A large regulatory capital buffer (162% PMIERs sufficiency and ~$1.9B excess) plus active buybacks/dividend increases provide durable financial flexibility. This supports continued insurance capacity, cushions credit shocks, and permits sustained capital returns without materially impairing solvency.
Negative Factors
Rising loss ratio and losses
A notable sequential increase in losses and loss ratio signals rising credit severity or delinquency conversion that can erode underwriting margins. If losses persist, management may need higher pricing, more reinsurance, or greater capital retention, reducing future returns or growth capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Capital strength & shareholder returns
A large regulatory capital buffer (162% PMIERs sufficiency and ~$1.9B excess) plus active buybacks/dividend increases provide durable financial flexibility. This supports continued insurance capacity, cushions credit shocks, and permits sustained capital returns without materially impairing solvency.
Read all positive factors
Enact Holdings (ACT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.01B
Dividend Yield2.02%
Average Volume (3M)278.68K
Price to Earnings (P/E)8.6
Beta (1Y)0.50
Revenue Growth1.98%
EPS Growth3.55%
CountryUS
Employees421
SectorFinancial
Sector Strength70
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)4.64
Shares Outstanding139,600,740
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/Revenue4.98
Enterprise Value/Gross Profit6.07
Enterprise Value/Ebitda6.78
Forecast
1Y Price Target
$46.00Price Target Upside7.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)4.75
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 makes money primarily by underwriting mortgage insurance policies and earning premiums for taking on credit risk tied to residential mortgage loans. Its core revenue stream is net premiums earned from insurance-in-force, which are collected ...
Enact Holdings Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
Overall the call conveys a positive tone: the company reported solid profitability, strong capital and liquidity (PMIERs sufficiency 162%), robust year-over-year NIW growth, active capital returns (buybacks and a 14% dividend increase), and continued strong credit metrics and reserve discipline (Q1 reserve release of $39M). Offsetting items include a sequential dip in NIW, an increase in quarterly losses and loss ratio versus Q4, modest declines in premium rates, and some year-over-year pressure on persistency and new delinquency rates. Management emphasized disciplined pricing (Rate360), active risk management, and readiness for policy changes, leaving the company positioned to manage the highlighted risks.Positive Updates
Strong Profitability and ROE
Adjusted operating income of $172 million ($1.21 per diluted share); adjusted operating return on equity ~13% (12.9% reported by CFO), up from $1.10 per diluted share year-over-year.
Negative Updates
Sequential Decline in New Insurance Written
NIW declined 11% sequentially (Q1 $13 billion), reflecting rate volatility and seasonal dynamics despite strong year-over-year growth of 30%.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Profitability and ROE
Adjusted operating income of $172 million ($1.21 per diluted share); adjusted operating return on equity ~13% (12.9% reported by CFO), up from $1.10 per diluted share year-over-year.
Read all positive updates
Company Guidance
Management's guidance and targets for 2026 emphasized capital returns and disciplined expense management: full‑year operating expenses expected to be $215–$220 million (excluding reorganization costs), total capital returns targeted at approximately $500 million, and a 14% dividend increase to $0.24 per share payable June 18, 2026 (Q1 dividend was $0.21/$30M); in Q1 they returned $123 million via $93M of buybacks (2.3M shares at $40.66 avg) plus dividends and repurchased an additional 0.7M shares for $30M through April 30. Operationally they expect a flattish base premium rate for the year (Q1 base premium 39.4 bps; net earned premium 34.3 bps), reported Q1 adjusted operating income of $172M ($1.21/diluted share) and adjusted ROE ~13%, wrote $13B of new insurance, had $272B insurance‑in‑force, 80% persistency, PMIERs sufficiency 162% ( $1.9B above requirement) with $1.9B CRT capital credit, average portfolio book yield 4.5% (new‑money yield 5%), maintained an 8% claim rate, Q1 loss ratio 15%, Q1 delinquency rate 2.6% (new delinq 1.5%), and a 54% cure rate.Enact Holdings Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.24B | 1.23B | 1.20B | 1.15B | 1.09B | 1.12B |
| Gross Profit | 1.02B | 1.12B | 940.31M | 903.38M | 949.75M | 748.55M |
| EBITDA | 910.82M | 908.79M | 929.22M | 903.38M | 949.92M | 746.23M |
| Net Income | 676.24M | 674.24M | 688.07M | 665.51M | 704.16M | 546.68M |
Balance Sheet | ||||||
| Total Assets | 6.96B | 6.89B | 6.55B | 6.22B | 5.74B | 5.91B |
| Cash, Cash Equivalents and Short-Term Investments | 6.68B | 582.49M | 599.43M | 615.68M | 513.77M | 425.83M |
| Total Debt | 744.85M | 744.48M | 760.32M | 768.68M | 771.26M | 775.82M |
| Total Liabilities | 1.62B | 1.54B | 1.55B | 1.59B | 1.63B | 1.81B |
| Stockholders Equity | 5.34B | 5.36B | 5.00B | 4.63B | 4.10B | 4.11B |
Cash Flow | ||||||
| Free Cash Flow | 721.83M | 724.52M | 686.26M | 632.04M | 567.13M | -113.53M |
| Operating Cash Flow | 721.83M | 724.52M | 686.26M | 632.04M | 560.51M | 572.12M |
| Investing Cash Flow | -262.29M | -226.38M | -320.51M | -229.40M | -220.25M | -398.78M |
| Financing Cash Flow | -545.78M | -515.08M | -382.00M | -300.73M | -252.31M | -200.29M |
Enact Holdings Technical Analysis
Positive
42.89
Price Trends
42.05
Positive
41.38
Positive
39.30
Positive
Market Momentum
0.28
Positive
61.22
Neutral
57.38
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 below the 20-day moving average (MA) of 43.26, above the 50-day MA of 42.05, and above the 200-day MA of 39.30, indicating a bullish trend. The MACD of 0.28 indicates Positive momentum. The RSI at 61.22 is Neutral, neither overbought nor oversold. The STOCH value of 57.38 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 |
|---|---|---|---|---|---|---|---|
85 Outperform | $5.57B | 7.98 | 12.01% | 1.88% | 1.34% | 2.64% | |
80 Outperform | $6.01B | 8.61 | 12.74% | 2.02% | 1.98% | 3.55% | |
77 Outperform | $4.91B | 9.13 | 12.01% | 2.78% | 7.69% | 3.24% | |
76 Outperform | $5.48B | 8.58 | 14.00% | 1.89% | -1.24% | 4.62% | |
76 Outperform | $2.85B | 7.19 | 0.06% | ― | 7.29% | 6.16% | |
73 Outperform | $6.84B | 12.41 | 12.56% | 3.58% | 27.63% | 328.74% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
ACT
Enact Holdings
42.84
6.65
18.37%
FAF
First American Financial
67.43
10.25
17.92%
MTG
MGIC Investment
26.07
0.05
0.18%
RDN
Radian Group
37.29
4.00
12.02%
ESNT
Essent Group
60.84
2.96
5.11%
NMIH
NMI Holdings
37.80
-0.83
-2.15%
Enact Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
Enact Holdings Shareholders Back Board, Pay and Auditor
Positive
May 15, 2026
On May 13, 2026, Enact Holdings held its Annual Meeting of Stockholders, at which shareholders elected all nominated directors to serve until the 2027 annual meeting, with each candidate receiving substantial majorities of votes cast. Investors al...
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.