Principal Financial Group Inc. Has $50.88 Million Position in Essent Group Ltd. $ESNT

Key Points

• Principal Financial Group trimmed its Essent Group stake by 2.7% in the fourth quarter, though it still held 782,648 shares valued at about $50.9 million.
• Essent Group beat first-quarter expectations, reporting EPS of $1.82 and revenue of $336.1 million, with revenue up 5.8% year over year and strong profitability metrics.
• The company also announced a quarterly dividend of $0.35 per share, which works out to a 2.2% annualized yield; meanwhile, insider selling by the CEO and an SVP was disclosed under pre-arranged trading plans.

Principal Financial Group Inc. reduced its stake in shares of Essent Group Ltd. (NYSE:ESNT - Free Report) by 2.7% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 782,648 shares of the financial services provider's stock after selling 21,873 shares during the quarter. Principal Financial Group Inc. owned about 0.81% of Essent Group worth $50,880,000 at the end of the most recent reporting period.

Several other institutional investors also recently modified their holdings of ESNT. Vanguard Group Inc. grew its position in shares of Essent Group by 0.7% in the 4th quarter. Vanguard Group Inc. now owns 11,987,945 shares of the financial services provider's stock valued at $779,336,000 after purchasing an additional 85,295 shares during the period. Cooke & Bieler LP grew its position in shares of Essent Group by 19.6% in the 3rd quarter. Cooke & Bieler LP now owns 1,938,688 shares of the financial services provider's stock valued at $123,223,000 after purchasing an additional 318,318 shares during the period. AQR Capital Management LLC grew its position 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 period. Wellington Management Group LLP grew its position in shares of Essent Group by 45.2% in the 3rd quarter. Wellington Management Group LLP now owns 1,198,447 shares of the financial services provider's stock valued at $76,173,000 after purchasing an additional 372,881 shares during the period. Finally, Invesco Ltd. grew its position in shares of Essent Group by 3.4% in the 3rd quarter. Invesco Ltd. now owns 1,116,784 shares of the financial services provider's stock valued at $70,983,000 after purchasing an additional 36,586 shares during the period. 93.00% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, SVP Mary Lourdes Gibbons sold 4,250 shares of the company's stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $65.01, for a total transaction of $276,292.50. Following the sale, the senior vice president owned 233,336 shares in the company, valued at $15,169,173.36. This represents a 1.79% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Mark Casale sold 13,064 shares of the stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $65.05, for a total value of $849,813.20. Following the completion of the sale, the chief executive officer owned 2,218,480 shares in the company, valued at approximately $144,312,124. This trade represents a 0.59% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 25,814 shares of company stock worth $1,661,682. Company insiders own 3.60% of the company's stock.

Essent Group News Roundup

Here are the key news stories impacting Essent Group this week:

• Positive Sentiment: Essent Group beat first-quarter expectations, reporting $1.82 in EPS versus consensus around $1.72-$1.75, while revenue of $336.1 million also topped estimates. MarketBeat earnings report
• Positive Sentiment: The company said quarterly revenue rose 5.8% year over year, and profitability remained solid with a 12.09% return on equity and 54.72% net margin.
• Positive Sentiment: Essent Group announced a quarterly dividend of $0.35 per share, signaling continued capital returns to shareholders and implying a 2.2% annualized yield. GlobeNewswire dividend and results release
• Neutral Sentiment: Management discussed the results on multiple earnings calls and transcripts, but no additional major negative surprise was highlighted in the provided updates. Motley Fool transcript

Essent Group Trading Up 2.5%

Shares of Essent Group stock opened at $63.12 on Friday. Essent Group Ltd. has a 12-month low of $55.22 and a 12-month high of $67.09. The stock has a market cap of $5.93 billion, a P/E ratio of 9.16, a P/E/G ratio of 1.75 and a beta of 0.81. The company has a quick ratio of 1.20, a current ratio of 1.20 and a debt-to-equity ratio of 0.09. The business's 50 day moving average is $60.15 and its 200-day moving average is $61.75.

Essent Group (NYSE:ESNT - Get Free Report) last announced its quarterly earnings data on Friday, May 8th. The financial services provider reported $1.82 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.68 by $0.14. Essent Group had a return on equity of 12.09% and a net margin of 54.72%.The company had revenue of $336.07 million for the quarter, compared to analysts' expectations of $297.56 million. During the same quarter in the prior year, the business posted $1.69 EPS. The business's revenue was up 5.8% compared to the same quarter last year. Equities research analysts predict that Essent Group Ltd. will post 7.28 earnings per share for the current fiscal year.

Essent Group Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Monday, June 1st will be paid a dividend of $0.35 per share. The ex-dividend date is Monday, June 1st. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.2%. Essent Group's dividend payout ratio is currently 20.32%.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on ESNT shares. JPMorgan Chase & Co. reduced their price target on Essent Group from $65.00 to $64.00 and set a "neutral" rating for the company in a research report on Thursday, April 9th. Barclays reduced their price target on Essent Group from $63.00 to $61.00 and set an "equal weight" rating for the company in a research report on Monday, April 6th. Finally, UBS Group reduced their price target on Essent Group from $65.00 to $63.00 and set a "neutral" rating for the company in a research report on Thursday, March 12th. Four analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, Essent Group currently has an average rating of "Hold" and an average price target of $67.86.

Essent Group Profile

Essent Group Ltd. NYSE: ESNT is a publicly traded insurance holding company specializing in private mortgage insurance and mortgage reinsurance solutions. Through its primary subsidiary, Essent Guaranty, the company provides credit protection to mortgage lenders, helping mitigate the risk of borrower default on residential mortgage loans. Essent's insurance policies enable lenders to offer low-down-payment programs, supporting homebuyers in achieving homeownership with reduced upfront equity requirements.

Beyond traditional mortgage insurance, Essent offers a suite of risk management and analytics services designed to help financial institutions monitor and manage mortgage portfolios.

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