Essent Group (NYSE:ESNT) Stock Gets Downgrade from Bank of America

Key Points

• Bank of America downgraded Essent Group from “buy” to “neutral” and cut its price target from $78 to $68, implying only 0.69% upside. The broader analyst consensus is also “Hold,” with a $70.75 target.
• Essent shares opened at $67.54 after rising 2.9%, with a market capitalization of approximately $6.07 billion. The company reported quarterly EPS of $2.08 on revenue of $362.69 million, while analysts expect $7.58 in full-year EPS.
• Company insiders sold about 70,146 shares worth $4.9 million over the past quarter, though institutional investors continue to hold approximately 93% of Essent’s stock.

Essent Group (NYSE:ESNT - Get Free Report) was downgraded by equities researchers at Bank of America from a "buy" rating to a "neutral" rating in a note issued to investors on Friday, Marketbeat Ratings reports. They currently have a $68.00 target price on the financial services provider's stock, down from their prior target price of $78.00. Bank of America's price target would suggest a potential upside of 0.69% from the stock's current price.

Other equities analysts also recently issued reports about the stock. JPMorgan Chase & Co. lowered their target price on shares of Essent Group from $72.00 to $66.00 and set a "neutral" rating on the stock in a report on Monday, October 12th. BTIG Research began coverage on shares of Essent Group in a research note on Tuesday, September 22nd. They issued a "hold" rating for the company. Keefe, Bruyette & Woods lifted their price objective on shares of Essent Group from $74.00 to $78.00 and gave the company an "outperform" rating in a research report on Monday, August 10th. Barclays boosted their price objective on shares of Essent Group from $65.00 to $66.00 and gave the stock an "equal weight" rating in a research note on Monday, October 5th. Finally, Royal Bank Of Canada upped their target price on shares of Essent Group from $68.00 to $75.00 and gave the company a "sector perform" rating in a report on Monday, August 10th. Three equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $70.75.

Essent Group Stock Up 2.9%

ESNT stock opened at $67.54 on Friday. The company has a quick ratio of 1.18, a current ratio of 1.18 and a debt-to-equity ratio of 0.09. The business has a 50 day moving average price of $65.75 and a two-hundred day moving average price of $62.90. The company has a market cap of $6.07 billion, a price-to-earnings ratio of 9.42, a P/E/G ratio of 1.64 and a beta of 0.76. Essent Group has a twelve month low of $55.34 and a twelve month high of $70.37.

Essent Group (NYSE:ESNT - Get Free Report) last announced its quarterly earnings data on Tuesday, June 30th. The financial services provider reported $2.08 earnings per share (EPS) for the quarter. The company had revenue of $362.69 million for the quarter. Essent Group had a return on equity of 11.91% and a net margin of 51.45%. Analysts anticipate that Essent Group will post 7.58 EPS for the current fiscal year.

Insiders Place Their Bets

In other Essent Group news, CFO David Weinstock sold 5,500 shares of the firm's stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $68.54, for a total transaction of $376,970.00. Following the completion of the sale, the chief financial officer owned 29,994 shares of the company's stock, valued at $2,055,788.76. This trade represents a 15.50% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Mark Casale sold 798 shares of the firm's stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $70.01, for a total value of $55,867.98. Following the sale, the chief executive officer directly owned 2,038,893 shares of the company's stock, valued at $142,742,898.93. This represents a 0.04% 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. Insiders have sold 70,146 shares of company stock worth $4,900,365 in the last quarter. Company insiders own 3.60% of the company's stock.

Institutional Trading of Essent Group

Several hedge funds and other institutional investors have recently modified their holdings of ESNT. Allworth Financial LP acquired a new position in shares of Essent Group in the second quarter valued at about $31,000. Root Financial Partners LLC acquired a new stake in Essent Group in the 3rd quarter worth about $43,000. Versant Capital Management Inc raised its stake in Essent Group by 790.6% in the 2nd quarter. Versant Capital Management Inc now owns 757 shares of the financial services provider's stock worth $49,000 after purchasing an additional 672 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Essent Group in the 2nd quarter worth about $55,000. Finally, Farther Finance Advisors LLC raised its stake in Essent Group by 82.3% in the 3rd quarter. Farther Finance Advisors LLC now owns 981 shares of the financial services provider's stock worth $57,000 after purchasing an additional 443 shares in the last quarter. Institutional investors own 93.00% of the company's stock.

Essent Group Company Profile

Essent Group Ltd. NYSE: ESNT is a Bermuda-based holding company that provides private mortgage insurance and related risk-management services in the United States. Through its operating subsidiaries, the company helps protect mortgage lenders and investors against losses when borrowers default on residential mortgage loans.

Its principal business is mortgage insurance for low-down-payment conventional residential mortgages, enabling qualified borrowers to obtain home financing with less than a 20% down payment.

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