Essent Group (NYSE:ESNT) Stock Price Down 6.9% - Here's What Happened

Key Points

• Essent Group shares fell 6.9% to about $58.86 during Wednesday trading, with volume below the stock’s average session level.
• Analyst sentiment remains mixed: three analysts rate the stock a Buy and six rate it a Hold, producing an overall “Hold” consensus and an average price target of $71.86.
• The company reported quarterly EPS of $2.08 on $362.69 million in revenue, pays a $0.35 quarterly dividend yielding about 2.4%, and insiders have sold roughly 100,720 shares worth $6.9 million over the past three months.

Essent Group Ltd. (NYSE:ESNT - Get Free Report)'s stock price was down 6.9% during trading on Wednesday. The company traded as low as $59.26 and last traded at $58.8620. 530,825 shares changed hands during mid-day trading, a decline of 27% from the average session volume of 732,090 shares. The stock had previously closed at $63.24.

Wall Street Analyst Weigh In

ESNT has been the subject of a number of research analyst reports. BTIG Research assumed coverage on Essent Group in a report on Tuesday, September 22nd. They set a "hold" rating for the company. 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 report on Monday, August 10th. Keefe, Bruyette & Woods upped their target price 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. Wall Street Zen raised shares of Essent Group from a "hold" rating to a "buy" rating in a research note on Saturday, August 15th. Finally, Royal Bank Of Canada lifted their price target on shares of Essent Group from $68.00 to $75.00 and gave the company a "sector perform" rating in a research report on Monday, August 10th. Three investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $71.86.

Essent Group Stock Performance

The firm has a 50-day moving average price of $67.48 and a 200 day moving average price of $63.17. The firm has a market capitalization of $5.29 billion, a PE ratio of 8.23, a price-to-earnings-growth ratio of 1.60 and a beta of 0.76. The company has a quick ratio of 1.18, a current ratio of 1.18 and a debt-to-equity ratio of 0.09.

Essent Group (NYSE:ESNT - Get Free Report) last posted its quarterly earnings data on Tuesday, June 30th. The financial services provider reported $2.08 earnings per share (EPS) for the quarter. Essent Group had a return on equity of 11.91% and a net margin of 51.45%.The firm had revenue of $362.69 million for the quarter. Research analysts expect that Essent Group Ltd. will post 7.6 earnings per share for the current year.

Essent Group Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 31st were paid a dividend of $0.35 per share. The ex-dividend date was Monday, August 31st. This represents a $1.40 dividend on an annualized basis and a yield of 2.4%. Essent Group's dividend payout ratio is 19.53%.

Insider Buying and Selling at Essent Group

In other news, CFO David Weinstock sold 5,500 shares of the firm's stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $68.54, for a total value of $376,970.00. Following the completion of the transaction, the chief financial officer owned 29,994 shares of the company's stock, valued at approximately $2,055,788.76. This trade represents a 15.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Douglas Pauls sold 2,500 shares of Essent Group stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $69.70, for a total transaction of $174,250.00. Following the completion of the transaction, the director owned 30,154 shares of the company's stock, valued at $2,101,733.80. This trade represents a 7.66% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 100,720 shares of company stock valued at $6,898,040. Corporate insiders own 3.60% of the company's stock.

Hedge Funds Weigh In On Essent Group

Several institutional investors have recently modified their holdings of the business. QRG Capital Management Inc. acquired a new position in Essent Group during the 2nd quarter worth $216,000. Sequoia Financial Advisors LLC raised its position in Essent Group by 19.9% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 7,908 shares of the financial services provider's stock valued at $508,000 after purchasing an additional 1,315 shares in the last quarter. WINTON GROUP Ltd purchased a new position in shares of Essent Group in the 2nd quarter valued at about $822,000. Engineers Gate Manager LP boosted its stake in shares of Essent Group by 427.2% in the 2nd quarter. Engineers Gate Manager LP now owns 34,582 shares of the financial services provider's stock valued at $2,223,000 after buying an additional 28,022 shares during the period. Finally, Integrated Wealth Concepts LLC grew its position in shares of Essent Group by 5.6% during the second quarter. Integrated Wealth Concepts LLC now owns 67,373 shares of the financial services provider's stock worth $4,331,000 after buying an additional 3,552 shares in the last quarter. Institutional investors and hedge funds own 93.00% of the company's stock.

About Essent Group

Essent Group Ltd. is a Bermuda-based holding company focused on private mortgage insurance and related risk-management solutions for the U.S. residential mortgage market. Through its subsidiaries, the company helps protect mortgage lenders and investors against losses when borrowers default on home loans.

Essent's primary business is conducted through Essent Guaranty, Inc, which provides mortgage insurance for conventional residential mortgages, generally supporting loans made to borrowers with down payments below traditional thresholds.

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