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Essent Group Ltd

Essent Group Ltd

ESNT
$68.18USD↓-0.23%-0.16 today

MARKET CAP

6.1B

P/E (TTM)

9.7x

FWD P/E

—

DAY RANGE

$68 – $69

52W RANGE

$55
$70

AI Summary

Stalk
StalkMedium

ESNT remains in a secular uptrend, exhibiting Stage 2 characteristics but showing current upside exhaustion. Medium-term directional asymmetry favors long-side participation, yet near-term price fatigue and pullback into EMAs call for patience. A pullback into the 20EMA and 50DMA support zone offers a structurally favorable entry aligned with free cash flow and buyback strength.

  • ↑Q2 net income $189.7M ($2.08/share), 17.5% above consensus
  • ↑Declared $0.35 quarterly dividend, translating to a 14.6% yield
  • ↓Weak growth factors raise risk of revenue stagnation
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Essent Group Ltd. (NYSE: ESNT) is a leading player in the private mortgage insurance sector, strategically positioned within the housing finance market. The company offers mortgage insurance solutions aimed at supporting homeownership and mitigating risks associated with mortgage lending. With a notable portfolio of insured mortgages and significant financial backing, Essent is well-equipped to capitalize on the ongoing demand in the housing sector, particularly as demographics and economic conditions evolve.

Bull says

  • ↑Q2 net income $189.7M ($2.08/share), 17.5% above consensus
  • ↑Declared $0.35 quarterly dividend, translating to a 14.6% yield
  • ↑Repurchased 5.8M shares for $348M YTD (≈6.9% of market cap)
  • ↑Wrote $14.1B in new mortgage insurance, signaling solid demand
  • ↑Maintained 86% persistency rate, underpinning stable cash flows
  • ↑Held $6.4B cash & investments earning ~3.9% annually

Bear says

  • ↓Weak growth factors raise risk of revenue stagnation
  • ↓Weak profitability factors suggest ongoing margin pressure
  • ↓High short interest reflects significant investor skepticism
  • ↓Buyback focus over reinvestment may constrain long-term growth
  • ↓GSE reform uncertainty could intensify competition
  • ↓Rising rates may erode housing affordability and demand

Investment themes with ESNT

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 · Q1 2024 · Mgmt. Guidance

Updated 05-10-2025bullish

Transcript signals

Bull points

  • Our results continue to benefit from the favorable credit performance of our insured portfolio and the impact of higher rates on both persistency and investment earnings.
  • Given the state of the economy and higher rates, we are encouraged by the resilience of housing and the labor market.
  • we are pleased with our first quarter results as Essent continues to generate high-quality earnings, while our balance sheet and liquidity remains strong.
Read full transcript analysis ›