Enact Holdings, Inc.
$40.57
+0.36%Enact Holdings, Inc. operates as a private mortgage insurance company in the United States. The company is involved in writing and assuming residential mortgage guaranty insurance. It offers private mortgage insurance products primarily insuring prime-based, individually underwritten residential mortgage loans; and contract underwriting services for mortgage lenders. The company was formerly known as Genworth Mortgage Holdings, Inc. and changed its name to Enact Holdings, Inc. in May 2021. Enact Holdings, Inc. was founded in 1981 and is headquartered in Raleigh, North Carolina. Enact Holdings, Inc. is a subsidiary of Genworth Holdings, Inc.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 8.9).
Valuation inputs: P/E 8.9, earnings yield +11.2%, momentum +0.4%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is acceptable (ROE +12.6%, ROIC +9.9%).
Profitability stack: net margin +54.8%, ROE +12.6%, ROIC +9.9%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile looks controlled across current risk inputs.
Risk factors: liabilities/assets +22.3%, momentum +0.4%, net margin +54.8%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Enact Holdings, Inc. Market vs Earnings Trajectory
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Enact Holdings, Inc. Fair Value Envelope
Enact Holdings, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Outstanding operational efficiency. The company generates substantial profit from core operations.
Net Profit Margin
Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Exceptional profitability across all levels: Strong pricing power, efficient operations, and healthy bottom line indicate a high-quality business with sustainable competitive advantages.
Enact Holdings, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
FCF Growth Trend
Steady FCF growth indicates consistent cash generation improvement. On a positive trajectory.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
Enact Holdings, Inc. Funding & Solvency Profile
Financial Health Analysis
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Enact Holdings, Inc. Street Expectations Map
Wall Street analysts project that ACT stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 45.00, with estimates ranging from a low of 40.00 to a high of 50.00.
The consensus 1-year price target stands at 45.00, with estimates ranging from a low of 40.00 to a high of 50.00.
Analyst Consensus Analysis
Upside Potential
Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Risk-Reward Profile
Favorable risk-reward. Potential upside significantly exceeds downside risk, offering asymmetric return profile attractive for risk-tolerant investors.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Asymmetric upside: Strong return potential with favorable risk-reward profile. The limited downside relative to upside makes this an attractive risk-adjusted opportunity for growth-oriented portfolios.
Enact Holdings, Inc. Insider Positioning
During the last 12 months, insiders have sold $340.34M worth of ACT shares, with no buying activity reported.
3 Months
0
0.00
2.0M
83.39M
-83.4M
-$83.39M
3-6 Months
0
0.00
2.0M
78.28M
-78.3M
-$78.28M
6-9 Months
0
0.00
2.8M
102.59M
-102.6M
-$102.59M
9-12 Months
0
0.00
2.1M
76.09M
-76.1M
-$76.09M
Top Buyers
No buying activity
Top Sellers
Genworth Holdings, Inc.
10 Percent Owner
$337.68M
Gupta Rohit
Director, Officer: President And Ceo
$1.24M
Restrepo Robert P Jr
Director
$936K
Derstine Michael
Officer: Evp And Chief Risk Officer
$380K
Mcmullen James
Officer: Controller
$104K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $340.34M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
act Dividend History
Learning Layer
Related Guides
Build conviction on ACT by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.