Essent Group (NYSE:ESNT) Hits New 12-Month High - What's Next?

Key Points

• Essent Group Ltd. reached a new 52-week high of $65.72, with a last trading price of $65.63, indicating a strong performance in the market.
• Analysts have mixed opinions on the stock, with four rating it as a buy and four as a hold, while the average price target stands at $63.67.
• The company reported a quarterly earnings jump to $1.93 EPS, surpassing estimates and showing a year-over-year revenue increase of 2.0% to $319.14 million.

Essent Group Ltd. (NYSE:ESNT - Get Free Report)'s stock price reached a new 52-week high on Thursday . The stock traded as high as $65.72 and last traded at $65.63, with a volume of 144290 shares traded. The stock had previously closed at $63.55.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on ESNT. DOWLING & PARTN lowered Essent Group from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 12th. Barclays raised their target price on Essent Group from $58.00 to $59.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 8th. Compass Point reiterated a "buy" rating on shares of Essent Group in a research note on Friday, August 8th. The Goldman Sachs Group set a $60.00 price target on Essent Group and gave the stock a "neutral" rating in a report on Friday, August 8th. Finally, JPMorgan Chase & Co. set a $60.00 price target on Essent Group in a research report on Friday, August 8th. Four research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $63.67.

Essent Group Price Performance

The company's 50 day moving average is $60.51 and its 200-day moving average is $58.52. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 0.09. The firm has a market capitalization of $6.38 billion, a price-to-earnings ratio of 9.45, a P/E/G ratio of 2.83 and a beta of 0.86.

Essent Group (NYSE:ESNT - Get Free Report) last issued its quarterly earnings data on Friday, August 8th. The financial services provider reported $1.93 earnings per share for the quarter, topping the consensus estimate 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 analysts' expectations of $317.46 million. During the same quarter in the previous year, the firm posted $1.91 earnings per share. Essent Group's revenue for the quarter was up 2.0% on a year-over-year basis. Equities research analysts anticipate that Essent Group Ltd. will post 6.88 earnings per share for the current year.

Essent Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 10th. Shareholders of record on Friday, August 29th were given a dividend of $0.31 per share. The ex-dividend date was Friday, August 29th. This represents a $1.24 annualized dividend and a yield of 1.9%. Essent Group's dividend payout ratio (DPR) is 18.10%.

Insider Buying and Selling at Essent Group

In related news, CFO David B. Weinstock sold 2,500 shares of the stock in a transaction on Monday, September 15th. The stock was sold at an average price of $63.33, for a total transaction of $158,325.00. Following the completion of the sale, the chief financial officer directly owned 24,865 shares of the company's stock, valued at $1,574,700.45. This trade represents a 9.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director William Spiegel sold 6,451 shares of the business's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $62.74, for a total value of $404,735.74. Following the sale, the director owned 26,252 shares of the company's stock, valued at $1,647,050.48. The trade was a 19.73% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 28,430 shares of company stock worth $1,817,196. Company insiders own 2.90% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in ESNT. Dimensional Fund Advisors LP lifted its stake in shares of Essent Group by 4.5% during the first quarter. Dimensional Fund Advisors LP now owns 5,399,228 shares of the financial services provider's stock valued at $311,638,000 after acquiring an additional 230,553 shares during the period. AQR Capital Management LLC increased its stake in shares of Essent Group by 78.9% in the 2nd quarter. AQR Capital Management LLC now owns 1,517,859 shares of the financial services provider's stock valued at $92,180,000 after purchasing an additional 669,577 shares during the last quarter. Norges Bank bought a new position in shares of Essent Group in the 2nd quarter worth about $75,596,000. JPMorgan Chase & Co. increased its position in Essent Group by 4.6% in the 2nd quarter. JPMorgan Chase & Co. now owns 1,027,429 shares of the financial services provider's stock valued at $62,396,000 after buying an additional 45,606 shares in the last quarter. Finally, Victory Capital Management Inc. boosted its stake in shares of Essent Group by 1,272.6% in the 1st quarter. Victory Capital Management Inc. now owns 970,969 shares of the financial services provider's stock worth $56,044,000 after buying an additional 900,229 shares during the last quarter. 93.00% of the stock is owned by institutional investors.

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.