Essent Group (NYSE:ESNT) Rating Lowered to "Hold" at DOWLING & PARTN

Key Points

• Essent Group has been downgraded from a "strong-buy" to a "hold" rating by DOWLING & PARTN, amidst mixed analyst opinions on the stock.
• The company's stocks are currently trading at $62.02 with a 1-year high of $65.33 and a 1-year low of $51.61.
• Despite the downgrade, Essent Group reported strong earnings of $1.93 per share, exceeding analyst estimates, and a revenue increase of 2.0% year-over-year.

DOWLING & PARTN downgraded shares of Essent Group (NYSE:ESNT - Free Report) from a strong-buy rating to a hold rating in a research note released on Tuesday morning,Zacks.com reports.

ESNT has been the topic of several other reports. Compass Point reissued a "buy" rating on shares of Essent Group in a research report on Friday, August 8th. BTIG Research restated a "buy" rating on shares of Essent Group in a report on Friday, May 9th. Barclays raised their price target on shares of Essent Group from $58.00 to $59.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 8th. JPMorgan Chase & Co. set a $60.00 price target on shares of Essent Group in a report on Friday, August 8th. Finally, Keefe, Bruyette & Woods cut shares of Essent Group from an "outperform" rating to a "market perform" rating in a research note on Friday, August 8th. Four investment analysts have rated the stock with a hold rating and four have given a buy rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $63.67.

Essent Group Stock Performance

Shares of Essent Group stock traded down $0.98 during trading hours on Tuesday, reaching $61.84. The company's stock had a trading volume of 561,815 shares, compared to its average volume of 769,820. The company's 50 day simple moving average is $58.64 and its 200 day simple moving average is $57.47. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.32 and a current ratio of 1.24. Essent Group has a one year low of $51.61 and a one year high of $65.33. The stock has a market cap of $6.09 billion, a P/E ratio of 9.03, a price-to-earnings-growth ratio of 8.76 and a beta of 0.82.

Essent Group (NYSE:ESNT - Get Free Report) last released its quarterly earnings results on Friday, August 8th. The financial services provider reported $1.93 EPS for the quarter, topping analysts' consensus estimates of $1.68 by $0.25. Essent Group had a net margin of 56.36% and a return on equity of 12.66%. The company had revenue of $319.14 million for the quarter, compared to the consensus estimate of $317.46 million. During the same period in the previous year, the firm earned $1.91 EPS. Essent Group's revenue was up 2.0% on a year-over-year basis. As a group, analysts expect that Essent Group will post 6.88 EPS for the current fiscal year.

Essent Group Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 10th. Investors of record on Friday, August 29th will be paid a dividend of $0.31 per share. This represents a $1.24 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend is Friday, August 29th. Essent Group's dividend payout ratio is presently 18.10%.

Insider Buying and Selling

In other news, Director William Spiegel sold 6,451 shares of the firm's stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $62.74, for a total transaction of $404,735.74. Following the completion of the transaction, the director directly owned 26,252 shares of the company's stock, valued at $1,647,050.48. This trade represents a 19.73% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO David B. Weinstock sold 2,500 shares of the firm's stock in a transaction that occurred on Monday, June 16th. The stock was sold at an average price of $58.79, for a total transaction of $146,975.00. Following the transaction, the chief financial officer directly owned 27,365 shares of the company's stock, valued at $1,608,788.35. This represents a 8.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 14,950 shares of company stock valued at $919,651. 2.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Essent Group

Hedge funds have recently added to or reduced their stakes in the business. AdvisorNet Financial Inc acquired a new stake in shares of Essent Group during the first quarter worth $25,000. Hantz Financial Services Inc. lifted its holdings in shares of Essent Group by 1,765.2% during the second quarter. Hantz Financial Services Inc. now owns 429 shares of the financial services provider's stock worth $26,000 after buying an additional 406 shares in the last quarter. Summit Securities Group LLC acquired a new stake in shares of Essent Group during the first quarter worth $46,000. UMB Bank n.a. lifted its holdings in shares of Essent Group by 330.6% during the first quarter. UMB Bank n.a. now owns 1,098 shares of the financial services provider's stock worth $63,000 after buying an additional 843 shares in the last quarter. Finally, Fifth Third Bancorp lifted its holdings in shares of Essent Group by 20.2% during the first quarter. Fifth Third Bancorp now owns 1,114 shares of the financial services provider's stock worth $64,000 after buying an additional 187 shares in the last quarter. Institutional investors and hedge funds own 93.00% of the company's stock.

Essent Group Company Profile

Essent Group Ltd., through its subsidiaries, provides private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. Its mortgage insurance products include primary, pool, and master policy. The company also provides information technology maintenance and development services; customer support-related services; underwriting consulting; and contract underwriting services, as well as risk management products and title insurance and settlement services.