Essent Group (NYSE:ESNT) Shares Break Above 50-Day Moving Average - Here's Why

Key Points

• Essent Group shares rose above their 50-day moving average, reaching $67.70 and last trading near $67.54, compared with a 50-day average of $65.75.
• Analyst sentiment remains cautious: three analysts rate the stock a Buy and six rate it a Hold, producing an overall “Hold” rating and an average price target of $71.14.
• Essent reported $2.08 in quarterly EPS and maintains a quarterly dividend of $0.35, equivalent to a 2.1% yield; institutional investors own approximately 93% of the company.

Essent Group Ltd. (NYSE:ESNT - Get Free Report)'s stock price crossed above its 50-day moving average during trading on Thursday. The stock has a 50-day moving average of $65.75 and traded as high as $67.70. Essent Group shares last traded at $67.5360, with a volume of 843,636 shares changing hands.

Analyst Upgrades and Downgrades

ESNT has been the subject of a number of research analyst reports. Barclays increased their price target on shares of Essent Group from $65.00 to $66.00 and gave the stock an "equal weight" rating in a research report on Monday, October 5th. Roth Capital boosted their price objective on shares of Essent Group from $65.00 to $80.00 and gave the company a "buy" rating in a research report on Monday, August 10th. Royal Bank Of Canada upped their price objective on shares of Essent Group from $68.00 to $75.00 and gave the company a "sector perform" rating in a research note on Monday, August 10th. JPMorgan Chase & Co. dropped their price objective on shares of Essent Group from $72.00 to $66.00 and set a "neutral" rating on the stock in a research note on Monday, October 12th. Finally, BTIG Research initiated coverage on shares of Essent Group in a research report on Tuesday, September 22nd. They issued a "hold" rating for the company. Three equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $71.14.

Essent Group Price Performance

The company has a debt-to-equity ratio of 0.09, a current ratio of 1.18 and a quick ratio of 1.18. The stock's fifty day simple moving average is $65.75 and its 200-day simple moving average is $62.90. The company has a market capitalization of $6.07 billion, a P/E ratio of 9.42, a PEG ratio of 1.64 and a beta of 0.76.

Essent Group (NYSE:ESNT - Get Free Report) last announced its earnings results on Tuesday, June 30th. The financial services provider reported $2.08 earnings per share for the quarter. The firm had revenue of $362.69 million during the quarter. Essent Group had a return on equity of 11.91% and a net margin of 51.45%. On average, equities analysts forecast that Essent Group Ltd. will post 7.58 earnings per share for the current fiscal year.

Essent Group Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 31st were issued a $0.35 dividend. The ex-dividend date of this dividend was Monday, August 31st. This represents a $1.40 annualized dividend and a yield of 2.1%. Essent Group's dividend payout ratio is 19.53%.

Insiders Place Their Bets

In related news, SVP Vijay Bhasin sold 14,175 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $70.00, for a total transaction of $992,250.00. Following the completion of the transaction, the senior vice president owned 184,274 shares in the company, valued at $12,899,180. This trade represents a 7.14% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David B. Weinstock sold 5,500 shares of the business's stock in a transaction on Tuesday, September 15th. The shares were 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 in the company, valued at $2,055,788.76. This represents a 15.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 70,146 shares of company stock valued at $4,900,365 in the last ninety days. 3.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. BlackRock Inc. bought a new position in Essent Group in the second quarter valued at approximately $798,836,000. Renaissancere Holdings Ltd. bought a new stake in shares of Essent Group during the 2nd quarter worth approximately $107,114,521. Deutsche Bank AG bought a new stake in shares of Essent Group during the 2nd quarter worth approximately $43,068,000. Bank of New York Mellon Corp bought a new stake in shares of Essent Group during the 2nd quarter worth approximately $41,041,000. Finally, Bank of America Corp DE acquired a new stake in shares of Essent Group in the 2nd quarter valued at approximately $24,746,000. 93.00% of the stock is owned by institutional investors.

About Essent Group

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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