Essent Group Ltd. (NYSE:ESNT) has received a consensus rating of “Moderate Buy” from analysts covering the company, according to MarketBeat.com. The evaluation comes from ten analysts, with five recommending a hold and five suggesting a buy for the stock. The average target price over the next twelve months is projected at approximately $69.14.
Analysts Provide Mixed Ratings and Price Targets
Recent comments from various equities research analysts shed light on Essent Group’s market position. Keefe, Bruyette & Woods raised their target price from $71.00 to $73.00, designating a “market perform” rating in a research report dated December 18, 2023. Meanwhile, Roth Capital increased their target from $70.00 to $75.00 and assigned a “buy” rating on January 2, 2024.
On the other hand, the Goldman Sachs Group reaffirmed a “neutral” rating, setting their price target at $70.00. Additionally, JPMorgan Chase & Co. downgraded their rating from “overweight” to “neutral,” lowering their target price from $66.00 to $65.00 on October 7, 2023. The research from Weiss Ratings also maintained a positive outlook, issuing a “buy (B+)” rating on December 29, 2023.
Financial Performance and Market Position
As of the market opening on Friday, Essent Group’s shares traded at $64.09. The company boasts a market capitalization of $6.20 billion, with a price-to-earnings (P/E) ratio of 9.33 and a price-to-earnings-growth (PEG) ratio of 4.09. The firm reports a quick ratio and current ratio of 1.68, indicating a stable liquidity position and a low 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 disclosed its quarterly earnings on November 7, 2023, reporting earnings per share (EPS) of $1.67, which fell short of the consensus estimate of $1.75 by $0.08. Revenue for that quarter was $311.83 million, slightly below the expected $316.84 million. The company’s net margin stands at 55.63%, with a return on equity (ROE) of 12.40%. Compared to the previous year, revenue declined by 1.5%.
Equity analysts predict that Essent Group will achieve an EPS of 6.88 for the current fiscal year.
Dividend and Insider Activity
Essent Group also announced a quarterly dividend, which was distributed on December 10, 2023, to stockholders of record as of December 1. The dividend payment was $0.31, translating to an annualized amount of $1.24 and a yield of 1.9%. The ex-dividend date was the same as the record date. The company maintains a dividend payout ratio of 18.05%.
In terms of insider trading, Senior Vice President Mary Lourdes Gibbons sold 4,352 shares on December 18, 2023, at an average price of $67.00, totaling $291,584. Following this transaction, she holds 237,896 shares valued at approximately $15.94 million. Additionally, Director Roy James Kasmar sold 3,250 shares on November 14, 2023, for around $199,680.
Institutional Investment Trends
Recent changes among institutional investors reveal increased interest in Essent Group. Jane Street Group LLC boosted its stake by 760.5% during the first quarter, acquiring 367,460 shares valued at approximately $21.21 million. Arrowstreet Capital Limited Partnership raised its position by 184.8% in the second quarter, owning 343,101 shares worth $20.84 million.
Other firms like Pacer Advisors Inc. and Pallas Capital Advisors LLC also expanded their holdings significantly, with 93.00% of the stock currently held by institutional investors.
Essent Group Ltd. operates as an insurance holding company focused on private mortgage insurance and mortgage reinsurance solutions. Through its primary subsidiary, Essent Guaranty, the company provides credit protection to mortgage lenders, facilitating low-down-payment programs for homebuyers.
