Essent Group (NYSE:ESNT) Hits New 52-Week High Following Strong Earnings

Essent Group Ltd. (NYSE:ESNT) hit a new 52-week high on Friday following a better than expected earnings announcement. The stock traded as high as $68.72 and last traded at $68.9180, with a volume of 226416 shares changing hands. The stock had previously closed at $65.51.

The financial services provider reported $2.08 earnings per share for the quarter. Essent Group had a net margin of 53.64% and a return on equity of 12.01%. The firm had revenue of $362.69 million during the quarter.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the company. JPMorgan Chase & Co. raised their target price on Essent Group from $65.00 to $72.00 and gave the company a “neutral” rating in a report on Monday, July 13th. Keefe, Bruyette & Woods increased their price objective on shares of Essent Group from $73.00 to $74.00 and gave the company an “outperform” rating in a research report on Thursday, June 25th. Roth Capital reiterated a “buy” rating and set a $65.00 price objective on shares of Essent Group in a research note on Wednesday, June 3rd. Barclays boosted their target price on shares of Essent Group from $61.00 to $62.00 and gave the stock an “equal weight” rating in a research report on Monday, May 11th. Finally, Royal Bank Of Canada assumed coverage on shares of Essent Group in a research note on Friday, May 22nd. They issued a “sector perform” rating and a $68.00 target price for the company. Four equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $67.71.

Insider Activity

In related news, CFO David B. Weinstock sold 5,500 shares of the stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $63.51, for a total value of $349,305.00. Following the completion of the transaction, the chief financial officer owned 35,494 shares of the company’s stock, valued at approximately $2,254,223.94. This represents a 13.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Mark Casale sold 29,329 shares of the firm’s stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $65.35, for a total value of $1,916,650.15. Following the sale, the chief executive officer owned 2,184,143 shares of the company’s stock, valued at approximately $142,733,745.05. This trade represents a 1.33% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 39,837 shares of company stock worth $2,591,612. Insiders own 3.60% of the company’s stock.

Institutional Trading of Essent Group

Institutional investors have recently added to or reduced their stakes in the stock. Caitong International Asset Management Co. Ltd bought a new stake in shares of Essent Group in the 3rd quarter worth about $25,000. Measured Wealth Private Client Group LLC acquired a new position in Essent Group in the third quarter worth about $27,000. Los Angeles Capital Management LLC acquired a new position in Essent Group in the fourth quarter worth about $27,000. IFP Advisors Inc grew its stake in Essent Group by 97.1% in the fourth quarter. IFP Advisors Inc now owns 676 shares of the financial services provider’s stock worth $44,000 after purchasing an additional 333 shares in the last quarter. Finally, Versant Capital Management Inc increased its holdings in Essent Group by 790.6% in the second quarter. Versant Capital Management Inc now owns 757 shares of the financial services provider’s stock valued at $49,000 after buying an additional 672 shares during the last quarter. 93.00% of the stock is owned by institutional investors and hedge funds.

Essent Group Price Performance

The company has a 50 day simple moving average of $62.57 and a 200-day simple moving average of $61.51. The stock has a market cap of $6.37 billion, a price-to-earnings ratio of 9.85, a PEG ratio of 1.85 and a beta of 0.76. The company has a quick ratio of 1.32, a current ratio of 1.32 and a debt-to-equity ratio of 0.09.

About Essent Group

Essent Group Ltd. (NYSE: ESNT) is a publicly traded insurance holding company specializing in private mortgage insurance and mortgage reinsurance solutions. Through its primary subsidiary, Essent Guaranty, the company provides credit protection to mortgage lenders, helping mitigate the risk of borrower default on residential mortgage loans. Essent’s insurance policies enable lenders to offer low-down-payment programs, supporting homebuyers in achieving homeownership with reduced upfront equity requirements.

Beyond traditional mortgage insurance, Essent offers a suite of risk management and analytics services designed to help financial institutions monitor and manage mortgage portfolios.