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Enact Holdings
(NASDAQ:ACT)
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Rating:84Outperform
Price Target:
$51.00
▲(3.93% Upside)
Action:Reiterated
Date:08/07/26
ACT scores well primarily on strong financial performance (high profitability, conservative leverage, and strong recent cash generation) and an upbeat earnings update (higher capital return guidance and robust capital position). Technicals are positive but somewhat extended, while valuation remains appealing with a low P/E and a modest dividend yield; corporate events add minor governance stability.
Positive Factors
Strong cash generation
Strong and improving operating cash flow, with free cash flow closely aligned to net income, indicates high earnings quality and meaningful internal funding capacity. This supports capital returns, investment in operations, and resilience while reducing reliance on external financing over the next several quarters.
Negative Factors
Modest growth and variable earnings
The company’s high margins are not currently accompanied by rapid revenue growth, limiting the pace at which earnings power can expand. Periodic net-income declines also show that results remain sensitive to the operating environment, making sustained profit progression less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Strong and improving operating cash flow, with free cash flow closely aligned to net income, indicates high earnings quality and meaningful internal funding capacity. This supports capital returns, investment in operations, and resilience while reducing reliance on external financing over the next several quarters.
Read all positive factors
Enact Holdings (ACT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.32B
Dividend Yield1.96%
Average Volume (3M)409.33K
Price to Earnings (P/E)9.7
Beta (1Y)0.50
Revenue Growth2.49%
EPS Growth7.73%
CountryUS
Employees419
SectorFinancial
Sector Strength70
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)4.77
Shares Outstanding137,483,670
10 Day Avg. Volume403,920
30 Day Avg. Volume409,330
Financial Highlights & Ratios
PEG Ratio2.74
Price to Book (P/B)1.10
Price to Sales (P/S)4.78
P/FCF Ratio8.12
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue5.72
Enterprise Value/Gross Profit6.66
Enterprise Value/Ebitda7.78
Forecast
1Y Price Target
$48.33Price Target Upside-1.50% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)4.8
Revenue Forecast (FY)$1.27B
Enact Holdings Business Overview & Revenue Model
Company Description
Enact Holdings, Inc. operates as a private mortgage insurance company in the United States. The company engages in writing and assuming residential mortgage guaranty insurance. It also offers private mortgage insurance products insuring prime-base...
How the Company Makes Money
Enact primarily makes money by writing private mortgage insurance on residential mortgage loans and earning insurance premiums for assuming a portion of the lender’s credit risk if the borrower defaults. Its core revenue stream is net premiums ear...
Enact Holdings Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial picture: strong NIW growth, higher adjusted operating income and ROE, improved investment yields, disciplined expense management, robust capital metrics (161% PMIERs sufficiency) and an increased capital return target. Key risks are manageable but notable: slightly lower persistency, modest premium-rate pressure, higher year-over-year loss ratio, expectation of second-half seasonal uptick in delinquencies and some near-term realized investment losses. Overall, management conveyed confidence in portfolio resilience, prudent underwriting (including new AI underwriting tools), and continued shareholder returns.Positive Updates
Adjusted Operating Income and EPS Growth
Adjusted operating income of $177 million, or $1.26 per diluted share, up from $1.15 year-over-year and up from $1.21 in Q1 2026.
Negative Updates
Persistency and Premium Rate Pressure
Persistency of 80% was flat sequentially but down 2 percentage points year-over-year; base premium rate modestly declined to 39.1 bps (down 0.3 bps sequentially) and net earned premium rate to 34.1 bps (down 0.2 bps sequentially).
Read all updates
Q2-2026 Updates
Positive
Negative
Adjusted Operating Income and EPS Growth
Adjusted operating income of $177 million, or $1.26 per diluted share, up from $1.15 year-over-year and up from $1.21 in Q1 2026.
Read all positive updates
Company Guidance
Enact raised its 2026 capital return guidance to $550–$600 million (up from $500 million), citing strong H1 results—Q2 adjusted operating income was $177 million ($1.26 per diluted share) with adjusted operating ROE ~13% (13.2% reported by the CFO)—and returned $127 million in the quarter (≈$34 million in dividends, $0.24/share, and $93 million in buybacks of 2.2 million shares at an average $42.58), plus an additional 0.7 million shares repurchased for $30 million through July 31; management also announced a Q3 dividend of $0.24/share payable September 17, 2026. For the year, Enact now forecasts 2026 operating expenses (excluding reorganization costs) of $205–$210 million (Q2 operating expense was $52 million, expense ratio 21%, and a $1 million reorganization charge was excluded from adjusted operating income). The company emphasized its strong capital and liquidity position—PMIERs sufficiency of 161% (about $1.9 billion above requirement) and $1.9 billion of PMIERs capital credit from its third‑party CRT—and noted final capital return amounts remain subject to business performance, market conditions and regulatory approvals.Enact Holdings Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.25B | 1.23B | 1.20B | 1.15B | 1.09B | 1.12B |
| Gross Profit | 1.08B | 1.12B | 940.31M | 903.38M | 949.75M | 748.55M |
| EBITDA | 920.72M | 908.79M | 929.22M | 903.38M | 955.12M | 749.55M |
| Net Income | 683.27M | 674.24M | 688.07M | 665.51M | 704.16M | 546.68M |
Balance Sheet | ||||||
| Total Assets | 6.96B | 6.89B | 6.55B | 6.22B | 5.74B | 5.91B |
| Cash, Cash Equivalents and Short-Term Investments | 6.61B | 582.49M | 599.43M | 615.68M | 513.77M | 425.83M |
| Total Debt | 744.85M | 744.48M | 760.32M | 768.68M | 771.26M | 775.82M |
| Total Liabilities | 1.56B | 1.54B | 1.55B | 1.59B | 1.63B | 1.81B |
| Stockholders Equity | 5.40B | 5.36B | 5.00B | 4.63B | 4.10B | 4.11B |
Cash Flow | ||||||
| Free Cash Flow | 720.83M | 724.52M | 686.26M | 632.04M | 567.13M | -113.53M |
| Operating Cash Flow | 720.83M | 724.52M | 686.26M | 632.04M | 560.51M | 572.12M |
| Investing Cash Flow | -328.93M | -226.38M | -320.51M | -229.40M | -220.25M | -398.78M |
| Financing Cash Flow | -556.42M | -515.08M | -382.00M | -300.73M | -252.31M | -200.29M |
Enact Holdings Technical Analysis
Positive
49.07
Price Trends
48.19
Negative
46.00
Positive
43.45
Positive
Market Momentum
-0.76
Positive
47.15
Neutral
72.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACT, the sentiment is Positive. The current price of 49.07 is above the 20-day moving average (MA) of 47.16, above the 50-day MA of 48.19, and above the 200-day MA of 43.45, indicating a neutral trend. The MACD of -0.76 indicates Positive momentum. The RSI at 47.15 is Neutral, neither overbought nor oversold. The STOCH value of 72.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACT.
Enact Holdings Risk Analysis
Enact Holdings disclosed 38 risk factors in its most recent earnings report. Enact Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Enact Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $6.32B | 9.66 | 12.76% | 1.96% | 2.49% | 7.73% | |
78 Outperform | $5.62B | 8.65 | 11.91% | 2.18% | 4.47% | 4.26% | |
77 Outperform | $3.01B | 7.77 | 15.14% | ― | 7.53% | 7.71% | |
74 Outperform | $4.49B | 8.56 | 11.26% | 3.01% | 27.93% | -2.18% | |
72 Outperform | $5.63B | 8.54 | 13.90% | 2.26% | -1.88% | 4.83% | |
71 Outperform | $6.25B | 8.50 | 13.62% | 3.69% | 22.55% | 298.19% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
ACT
Enact Holdings
45.97
10.99
31.43%
FAF
First American Financial
61.20
4.17
7.30%
MTG
MGIC Investment
27.43
1.06
4.04%
RDN
Radian Group
33.93
1.55
4.79%
ESNT
Essent Group
62.49
4.54
7.84%
NMIH
NMI Holdings
40.01
4.33
12.14%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.