Essent Group Ltd. (NYSE:ESNT) has received a consensus rating of “Moderate Buy” from ten analysts monitoring the company, according to MarketBeat.com. This assessment includes five analysts recommending a hold on the stock, while the other five have issued buy ratings. The average target price over the next 12 months stands at approximately $69.14.
Recent evaluations from several equities research analysts highlight varying expectations for Essent Group’s stock performance. On December 18, Keefe, Bruyette & Woods raised their price objective from $71.00 to $73.00, maintaining a “market perform” rating. Following this, on January 2, Roth Capital increased its target price from $70.00 to $75.00 and affirmed a “buy” rating. In contrast, JPMorgan Chase & Co. adjusted their outlook from “overweight” to “neutral,” setting a lower price target at $65.00.
Stock Performance and Financial Overview
On the trading floor, shares of Essent Group opened at $64.09 on the latest trading day. The company boasts a market capitalization of $6.2 billion, with a price-to-earnings (P/E) ratio of 9.33 and a price-to-earnings-growth (PEG) ratio of 4.09. Its stock has demonstrated stability with a beta of 0.90.
Essent’s financial health is reflected in its ratios; the quick ratio and current ratio both stand at 1.68, while the debt-to-equity ratio is notably low at 0.09. Over the past year, the stock has fluctuated between a low of $51.61 and a high of $67.09.
In the most recent quarterly earnings report, released on November 7, 2023, Essent Group reported earnings per share (EPS) of $1.67, falling short of the consensus estimate of $1.75 by $0.08. Revenue for the quarter reached $311.83 million, slightly below the anticipated $316.84 million. The company experienced a 1.5% decline in revenue compared to the same quarter last year, when it achieved an EPS of $1.65.
Research analysts project Essent Group will post an EPS of $6.88 for the current fiscal year.
Dividend and Insider Activity
In financial matters, Essent Group recently declared a quarterly dividend of $0.31, which was distributed on December 10, 2023, to shareholders on record as of December 1. This results in an annualized dividend of $1.24 and a yield of 1.9%. The company maintains a dividend payout ratio (DPR) of 18.05%.
In terms of insider trading, Senior Vice President Mary Lourdes Gibbons sold 4,352 shares on December 18 at an average price of $67.00, totaling $291,584. This sale reduced her ownership stake by 1.80%, leaving her with 237,896 shares valued at approximately $15.94 million. Additionally, Director Roy James Kasmar sold 3,250 shares on November 14 for $199,680, which represented a decrease of 12.12% in his holdings.
Institutional Investments and Company Profile
Recent trading activity indicates significant institutional interest in Essent Group. Jane Street Group LLC boosted its stake by an impressive 760.5% in the first quarter, now holding 367,460 shares valued at about $21.21 million. Other notable increases include Arrowstreet Capital Limited Partnership, which raised its position by 184.8%, and Pacer Advisors Inc., which grew its holdings by 531.1%.
Currently, institutional investors hold 93% of Essent Group’s stock, reflecting strong professional confidence in the company’s prospects.
Essent Group Ltd. operates as an insurance holding company, primarily offering private mortgage insurance and reinsurance solutions. Through its subsidiary, Essent Guaranty, the firm provides credit protection to mortgage lenders, enabling low-down-payment programs that assist homebuyers in achieving homeownership. Beyond traditional mortgage insurance, Essent Group also delivers risk management and analytics services, helping financial institutions effectively manage their mortgage portfolios.
