Essent Group (NYSE:ESNT) Stock Price Down 5.6% on Disappointing Earnings

Shares of Essent Group Ltd. (NYSE:ESNT) dropped 5.6% during mid-day trading on Friday following a weaker than expected earnings announcement. The stock traded as low as $61.02 and last traded at $61.9580. Approximately 264,111 shares traded hands during trading, a decline of 60% from the average daily volume of 664,797 shares. The stock had previously closed at $65.64.

The financial services provider reported $1.60 EPS for the quarter, missing analysts’ consensus estimates of $1.74 by ($0.14). The business had revenue of $312.40 million during the quarter, compared to the consensus estimate of $312.62 million. Essent Group had a net margin of 55.63% and a return on equity of 12.40%. The firm’s revenue was down .8% on a year-over-year basis. During the same period in the previous year, the business posted $1.58 EPS.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on ESNT. Keefe, Bruyette & Woods increased their price target on Essent Group from $71.00 to $73.00 and gave the company a “market perform” rating in a report on Thursday, December 18th. Weiss Ratings reiterated a “buy (b+)” rating on shares of Essent Group in a research report on Monday, December 29th. Roth Mkm raised their target price on shares of Essent Group from $70.00 to $75.00 and gave the stock a “buy” rating in a report on Friday, January 2nd. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $70.00 price target on shares of Essent Group in a research note on Tuesday, January 6th. Finally, Barclays reduced their price objective on shares of Essent Group from $66.00 to $65.00 and set an “equal weight” rating on the stock in a research report on Tuesday, January 6th. Five research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $69.29.

Insider Activity at Essent Group

In other news, SVP Mary Lourdes Gibbons sold 4,352 shares of Essent Group stock in a transaction that occurred on Thursday, December 18th. The shares were sold at an average price of $67.00, for a total transaction of $291,584.00. Following the completion of the sale, the senior vice president owned 237,896 shares of the company’s stock, valued at approximately $15,939,032. The trade was a 1.80% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 2.90% of the company’s stock.

Hedge Funds Weigh In On Essent Group

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Jackson Creek Investment Advisors LLC purchased a new stake in Essent Group during the 3rd quarter valued at about $1,398,000. Cooke & Bieler LP lifted its holdings in shares of Essent Group by 19.6% during the third quarter. Cooke & Bieler LP now owns 1,938,688 shares of the financial services provider’s stock worth $123,223,000 after purchasing an additional 318,318 shares during the period. Pacer Advisors Inc. boosted its position in Essent Group by 531.1% in the third quarter. Pacer Advisors Inc. now owns 25,157 shares of the financial services provider’s stock valued at $1,599,000 after buying an additional 21,171 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its position in Essent Group by 184.8% in the second quarter. Arrowstreet Capital Limited Partnership now owns 343,101 shares of the financial services provider’s stock valued at $20,837,000 after buying an additional 222,613 shares during the last quarter. Finally, Bessemer Group Inc. increased its holdings in Essent Group by 16.6% in the 3rd quarter. Bessemer Group Inc. now owns 422,825 shares of the financial services provider’s stock worth $26,875,000 after buying an additional 60,335 shares during the period. 93.00% of the stock is currently owned by institutional investors.

Essent Group Stock Down 6.3%

The company has a current ratio of 1.68, a quick ratio of 1.68 and a debt-to-equity ratio of 0.09. The business’s 50-day simple moving average is $63.76 and its 200-day simple moving average is $62.29. The company has a market capitalization of $5.95 billion, a PE ratio of 8.96, a price-to-earnings-growth ratio of 4.15 and a beta of 0.90.

Essent Group Company Profile

Essent Group Ltd. (NYSE: ESNT) is a publicly traded insurance holding company specializing in private mortgage insurance and mortgage reinsurance solutions. Through its primary subsidiary, Essent Guaranty, the company provides credit protection to mortgage lenders, helping mitigate the risk of borrower default on residential mortgage loans. Essent’s insurance policies enable lenders to offer low-down-payment programs, supporting homebuyers in achieving homeownership with reduced upfront equity requirements.

Beyond traditional mortgage insurance, Essent offers a suite of risk management and analytics services designed to help financial institutions monitor and manage mortgage portfolios.