Essent Group (NYSE:ESNT – Get Free Report) issued its quarterly earnings data on Friday. The financial services provider reported $1.82 EPS for the quarter, missing the consensus estimate of $1.85 by ($0.03), Zacks reports. The business had revenue of $374.18 million for the quarter, compared to analysts’ expectations of $344.17 million. Essent Group had a return on equity of 11.91% and a net margin of 51.45%. During the same period in the previous year, the firm posted $1.67 EPS.
Here are the key takeaways from Essent Group’s conference call:
- Essent reported $163 million in net income ($1.82 per diluted share) and an approximately 12% annualized return on equity; book value per share rose about 9% year over year, including dividends.
- Mortgage insurance growth is expected to remain muted as affordability pressures weigh on originations, while persistency eased to 83.3%. The default rate increased to 2.75% from 2.53% in the prior quarter, and loss provisions also rose.
- Management characterized higher defaults and claim severity as expected normalization tied to portfolio aging and larger loan balances, noting that home equity and reinsurance protection should help limit ultimate claims.
- Essent expects about $320 million in 2026 written premiums from P&C reinsurance, with roughly half earned this year and a high-90s combined ratio; the company said it is building the business cautiously.
- The company reported strong cash flow and capital, announced a new $500 million share repurchase authorization and a $0.35 fourth-quarter dividend, and said it had repurchased nearly 8 million shares for about $475 million through October 31.
Essent Group Trading Down 7.6%
NYSE ESNT traded down $5.24 during trading on Friday, hitting $63.36. 1,119,616 shares of the company’s stock traded hands, compared to its average volume of 797,157. The stock has a fifty day moving average of $65.58 and a two-hundred day moving average of $63.09. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.18 and a quick ratio of 1.18. Essent Group has a 12-month low of $55.34 and a 12-month high of $71.84. The firm has a market cap of $5.69 billion, a P/E ratio of 8.66, a PEG ratio of 1.59 and a beta of 0.71.
Essent Group Dividend Announcement
The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Tuesday, December 1st will be paid a $0.35 dividend. The ex-dividend date of this dividend is Tuesday, December 1st. This represents a $1.40 annualized dividend and a yield of 2.2%. Essent Group’s payout ratio is currently 19.53%.
Insider Activity
In other news, CFO David B. Weinstock sold 5,500 shares of the business’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $68.54, for a total value of $376,970.00. Following the completion of the sale, the chief financial officer owned 29,994 shares of the company’s stock, valued at approximately $2,055,788.76. The trade was a 15.50% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Roy Kasmar sold 4,837 shares of the business’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $68.71, for a total value of $332,350.27. Following the completion of the sale, the director directly owned 21,361 shares of the company’s stock, valued at approximately $1,467,714.31. This trade represents a 18.46% 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 ninety days, insiders sold 69,663 shares of company stock valued at $4,866,555. Company insiders own 3.60% of the company’s stock.
Analyst Ratings Changes
Several brokerages have issued reports on ESNT. Wall Street Zen lowered shares of Essent Group from a “buy” rating to a “hold” rating in a research report on Saturday, October 31st. Roth Capital increased their target price on Essent Group from $65.00 to $80.00 and gave the company a “buy” rating in a research note on Monday, August 10th. BTIG Research started coverage on Essent Group in a research report on Tuesday, September 22nd. They set a “hold” rating on the stock. Keefe, Bruyette & Woods lifted their price target on Essent Group from $74.00 to $78.00 and gave the stock an “outperform” rating in a research note on Monday, August 10th. Finally, Royal Bank Of Canada lifted their price target on Essent Group from $68.00 to $75.00 and gave the stock a “sector perform” rating in a research note on Monday, August 10th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat.com, Essent Group currently has a consensus rating of “Hold” and a consensus target price of $70.75.
Check Out Our Latest Analysis on Essent Group
Key Stories Impacting Essent Group
Here are the key news stories impacting Essent Group this week:
- Positive Sentiment: Essent authorized a new $500 million share repurchase plan, which could support per-share results and return capital to shareholders. The company also declared a quarterly dividend of $0.35 per share. Essent outlines premiums and share repurchase plan Essent declares dividend
- Positive Sentiment: Third-quarter revenue was $374.2 million, above analysts’ roughly $344.2 million estimate. EPS also rose year over year, to $1.82 from $1.67. Essent posts better-than-expected sales
- Positive Sentiment: Essent outlined approximately $320 million in 2026 property-and-casualty written premiums, pointing to activity beyond its core mortgage insurance business. Essent outlines 2026 premiums
- Negative Sentiment: EPS of $1.82 missed consensus estimates of $1.85–$1.88. The modest shortfall may have overshadowed the revenue beat and year-over-year earnings growth. Essent lags Q3 earnings estimates
Essent Group Company Profile
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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