Essent Group Ltd. (NYSE:ESNT) has received a consensus rating of “Moderate Buy” from analysts following the company, as reported by MarketBeat.com. A total of ten analysts have evaluated the stock, with five recommending a hold and five suggesting a buy. The average target price for the stock over the next twelve months is set at $69.14.
Analysts have recently provided updated insights on Essent Group. On December 18, Keefe, Bruyette & Woods raised their price target from $71.00 to $73.00, maintaining a “market perform” rating. Similarly, Roth Capital increased their target from $70.00 to $75.00 and reaffirmed their “buy” recommendation on January 2. In contrast, Goldman Sachs Group retained a “neutral” rating with a price target of $70.00. On October 7, JPMorgan Chase & Co. downgraded their rating from “overweight” to “neutral” and adjusted their target price downwards from $66.00 to $65.00.
Stock Performance and Recent Earnings
As of Friday, Essent Group’s shares opened at $64.09. The company boasts a market capitalization of $6.20 billion, a P/E ratio of 9.33, and a price-to-earnings-growth ratio of 4.09. The stock has shown stability with a quick ratio of 1.68 and a debt-to-equity ratio of 0.09. Over the past twelve months, the stock has fluctuated between a low of $51.61 and a high of $67.09.
Essent Group released its quarterly earnings report on November 7. The financial services provider reported earnings per share (EPS) of $1.67, which fell short of the consensus estimate of $1.75 by $0.08. Revenue for the quarter totaled $311.83 million, lower than the anticipated $316.84 million. This represented a decrease of 1.5% in revenue compared to the same quarter the previous year. The company achieved a net margin of 55.63% and a return on equity of 12.40%. Analysts project that Essent Group will report an EPS of $6.88 for the current fiscal year.
Dividends and Insider Activity
Essent Group also declared a quarterly dividend, paid on December 10. Shareholders of record on December 1 received a dividend of $0.31, translating to an annualized dividend of $1.24 and a yield of 1.9%. The ex-dividend date was December 1, and the company maintains a dividend payout ratio of 18.05%.
In recent insider trading activity, Senior Vice President Mary Lourdes Gibbons sold 4,352 shares at an average price of $67.00, totaling $291,584.00. Post-transaction, she holds 237,896 shares, valued at approximately $15.94 million. This sale represents a 1.80% reduction in her holdings. Additionally, Director Roy James Kasmar sold 3,250 shares on November 14 for $199,680.00, which was a 12.12% decrease in his ownership.
Institutional Investment Trends
Recent trading activity indicates significant institutional interest in Essent Group. Jane Street Group LLC increased its stake by 760.5% in the first quarter, now holding 367,460 shares valued at $21.21 million. Arrowstreet Capital Limited Partnership raised its position by 184.8% in the second quarter, acquiring 343,101 shares worth $20.84 million. Pacer Advisors Inc. also expanded its holdings by 531.1% in the third quarter, adding 25,157 shares valued at $1.60 million. Approximately 93.00% of Essent Group’s stock is currently owned by institutional investors.
Essent Group Ltd. operates as a publicly traded insurance holding company specializing in private mortgage insurance and reinsurance solutions. Through its primary subsidiary, Essent Guaranty, the company provides credit protection to mortgage lenders, helping mitigate the risks associated with borrower defaults on residential mortgage loans. Additionally, the company offers risk management and analytics services tailored to assist financial institutions in effectively managing their mortgage portfolios.
