Essent Group Ltd. (NYSE:ESNT) has received a consensus rating of “Moderate Buy” from ten analysts covering the company, according to MarketBeat.com. The analysts are split evenly, with five recommending a hold and the other five endorsing a buy. The average target price set by these analysts for the next twelve months is approximately $69.14.
Analysts have recently provided updates on Essent Group’s stock performance. Notably, Keefe, Bruyette & Woods raised their price target from $71.00 to $73.00 and maintained a “market perform” rating in a report published on December 18, 2023. Similarly, Roth Capital increased their target from $70.00 to $75.00 and issued a “buy” rating on January 2, 2024. The Goldman Sachs Group reaffirmed a “neutral” rating while setting a price target at $70.00 in a report released on December 5, 2023. Conversely, JPMorgan Chase & Co. downgraded their rating from “overweight” to “neutral” and reduced their target price from $66.00 to $65.00 on October 7, 2023.
Essent Group’s Financial Performance
Shares of Essent Group opened at $64.09 on the trading day following these analyst updates. The company boasts a market capitalization of $6.20 billion, a price-to-earnings (P/E) ratio of 9.33, and a price-to-earnings-growth (PEG) ratio of 4.09. Additionally, Essent Group holds a beta of 0.90, indicating relatively stable stock performance compared to the market.
The firm reported its quarterly earnings on November 7, 2023, revealing earnings per share (EPS) of $1.67, which fell short of analysts’ expectations of $1.75 by $0.08. Revenue for the quarter totaled $311.83 million, just below the consensus estimate of $316.84 million. Essent Group’s net margin stood at 55.63%, while the return on equity was 12.40%. Year-over-year revenue decreased by 1.5%, compared to the same quarter in the previous year when the company reported an EPS of $1.65.
Dividend and Insider Activity
On December 10, 2023, Essent Group declared a quarterly dividend of $0.31 per share, which was paid to stockholders of record as of December 1, 2023. This results in an annualized dividend of $1.24 and a yield of 1.9%. The dividend payout ratio (DPR) is noted at 18.05%.
Recent insider trading activity includes a sale by Senior Vice President Mary Lourdes Gibbons, who sold 4,352 shares on December 18, 2023, for a total of $291,584. Following this transaction, Gibbons retains ownership of 237,896 shares, valued at around $15.94 million. Similarly, Director Roy James Kasmar sold 3,250 shares on November 14, 2023, for $199,680, reducing his ownership by 12.12%.
Institutional Investments
Essent Group has recently seen significant activity from institutional investors. Jane Street Group LLC increased its stake in Essent Group by an impressive 760.5% in the first quarter, acquiring 367,460 shares valued at approximately $21.21 million. Arrowstreet Capital Limited Partnership raised its position by 184.8% during the second quarter, adding 343,101 shares worth around $20.84 million.
Pacer Advisors Inc. also expanded its holdings by 531.1%, now owning 25,157 shares valued at $1.60 million. Other notable investors include Pallas Capital Advisors LLC, which bought a new stake valued at approximately $314,000, and Wealth Enhancement Advisory Services LLC, increasing its stake by 169.6%.
Currently, institutional investors hold 93.00% of Essent Group’s shares, reflecting strong confidence in the company’s future potential. Essent Group Ltd. operates as an insurance holding company specializing in private mortgage insurance and mortgage reinsurance solutions. Through its main subsidiary, Essent Guaranty, the company provides credit protection to mortgage lenders, facilitating low-down-payment programs for homebuyers.
