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Enact Holdings Inc

Enact Holdings Inc

ACT
$49.43USD↓-0.14%-0.07 today

MARKET CAP

6.8B

P/E (TTM)

11.0x

FWD P/E

—

DAY RANGE

$49 – $50

52W RANGE

$35
$51

AI Summary

Stalk
TrimMedium

The chart displays a double top formation at the highs, signaling a terminal phase within a distribution environment. Price is overbought and has stalled around intermediate EMAs, lacking a decisive breakdown. With Stage 3 distribution and a terminal pattern in place, the tradable side remains bearish over the medium term, but short-term timing is unfavorable, warranting deferred execution consistent with HQLA discipline. A decisive breakdown of key support will confirm the bearish move.

  • ↑Adjusted operating income $177M ($1.26 EPS) rose YoY; high earnings yield.
  • ↑Raised 2026 capital return target to $550–600M; returned $127M this quarter.
  • ↓Negative growth factor signals difficulty expanding revenue base.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Enact Holdings, Inc. (NASDAQ: ACT) operates in the mortgage insurance sector, providing credit protection to mortgage lenders and investors. The company is positioned well within the housing market, utilizing advanced technology to enhance its underwriting processes and underwriting precision. With its recent offerings like the Enact Loan Level Assistant (Ella), it aims to reinforce its competitive edge, reflecting a commitment to innovative solutions and sustainable homeownership.

Bull says

  • ↑Adjusted operating income $177M ($1.26 EPS) rose YoY; high earnings yield.
  • ↑Raised 2026 capital return target to $550–600M; returned $127M this quarter.
  • ↑Insurance in force reached $274B, with $15B new insurance (+19% sequential).
  • ↑Launched Ella AI assistant to boost underwriting accuracy and efficiency.
  • ↑PMR sufficiency ratio at 161% with low leverage supports stability.
  • ↑Strong momentum factor and solid book-to-price ratio underpin valuation.

Bear says

  • ↓Negative growth factor signals difficulty expanding revenue base.
  • ↓Elevated interest rates and policy uncertainty may suppress mortgage originations.
  • ↓Competitive pricing pressures threaten MI underwriting margins.
  • ↓Delinquency rates expected to rise in H2, raising credit costs.
  • ↓Limited institutional ownership indicates low market interest.
  • ↓Weak profitability factor and potential liquidity constraints could limit returns.

Investment themes with ACT

High Dividend Yield↓ -0.51%

Companies paying above-average dividends

AVGO · JPM · XOM
Buybacks↓ -0.29%

Companies repurchasing their own shares

C · JCI · WFC

Earnings Call · Q2 2020 · Mgmt. Guidance

Updated 08-06-2025bullish

Transcript signals

Bull points

  • During the quarter, we reported adjusted operating income of $201 million, up 21% sequentially and 13% year-over-year.
  • Adjusted EPS was $1.27. Adjusted return on equity was a solid 17%, and insurance-enforced was a record $266 billion, up 1% sequentially and up 3% year-over-year.
  • Overall, we are confident that mortgage insurance will continue to be a crucial resource to both buyers and lenders alike.

Bear points

  • New insurance written was $14 billion, up $3 billion sequentially, and down $1 billion or 10% year-over-year. Persistency was 83% in the second quarter, down two percentage points sequentially, and down one percentage point year over year.
Read full transcript analysis ›