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Enact Holdings Inc

Enact Holdings Inc

ACT
$46.52USD↓-0.06%-0.03 today

MARKET CAP

6.5B

P/E (TTM)

9.9x

FWD P/E

9.3x

DAY RANGE

$46 – $47

52W RANGE

$34
$47

AI Summary

Stalk
StalkMedium

ACT remains in a Stage 2 advancing regime with a medium-term bullish bias and long-term uptrend. A recent Momentum Breakout on expanding volume cleared horizontal resistance, and price is now pulling back into the rising 9EMA and 20EMA near the prior resistance zone. Despite extreme overbought conditions, the healthy Stage 2 structure and intact EMA support favor a deferred buy strategy around the EMAs upon clear acceptance above them. Patience is advised until this pullback resolves.

  • ↑Adjusted operating income rose 10% YoY to $172 M ($1.21/share) in Q1 2026.
  • ↑Guided ~$500 M capital returns in 2026; dividend increased 14%.
  • ↓Growth factor flagged negative; new insurance written down 11% sequentially.
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The case for & against

Bull & Bear analysis

Bullish

Enact Holdings, Inc. (NASDAQ: ACT) is a leading player in the mortgage insurance sector, providing significant risk coverage to lenders and fostering affordable home ownership. The company leverages advanced analytics and innovative pricing mechanisms such as its proprietary Rate360 system, which enables tailored risk assessments based on market dynamics. Positioned strongly amid the ongoing transformation in the housing market, Enact focuses on enhancing accessibility and security in home financing, even amidst fluctuating interest rates and consumer concerns.

Bull says

  • ↑Adjusted operating income rose 10% YoY to $172 M ($1.21/share) in Q1 2026.
  • ↑Guided ~$500 M capital returns in 2026; dividend increased 14%.
  • ↑Average FICO 746 and PMIR sufficiency at 162% signal strong credit quality.
  • ↑Rate360 pricing engine drives underwriting efficiency and tailored risk assessment.
  • ↑Insurance-in-force climbed 2% YoY to $272 B; new insurance written +30% YoY.
  • ↑High earnings yield, solid book-to-price ratio and low price volatility support value appeal.

Bear says

  • ↓Growth factor flagged negative; new insurance written down 11% sequentially.
  • ↓Weak dividend yield and limited revisions may curb investor interest.
  • ↓Ongoing regulatory changes could raise compliance costs and constrain capital.
  • ↓Mortgage insurance market crowded; rivals with advanced tech might erode share.
  • ↓Low 13F ownership and high short interest reflect institutional skepticism.
  • ↓Sequential decline in NIW despite YoY gain underscores demand uncertainty.

Investment themes with ACT

High Dividend Yield↑ +0.32%

Companies paying above-average dividends

AVGO · JPM · XOM
Buybacks↑ +0.48%

Companies repurchasing their own shares

C · JCI · WFC

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-09-2026neutral

Transcript signals

Bull points

  • we believe the market remains constructive, and we like the NIW. We wrote almost $13 billion of NIW in the first quarter, and the returns we are getting on that NIW.
  • For the first quarter, we reported adjusted operating income of $172 million, or $1.21 per diluted share, and adjusted return on equity was 13%.
  • Additionally, across our portfolio, 58% of loans in our book have rates below 6%, providing continued support for elevated persistency.

Bear points

  • So I would say a very good point in terms of we have had few refi windows, as you called it, in the market, and those refi windows, although they were short, they have given us insights into how borrower behavior and lender behavior has worked in the last six, seven months.
  • If rates were to drop in the purchase selling season, we do believe that there's a significant amount of pent-up demand on the sidelines that you could see those consumers come to market, and that would benefit homeownership rates, and that would benefit MI market.
  • But I think it could tick up from the 2.6 that you see in the first quarter.
Read full transcript analysis ›