Enact Holdings, Inc. (ACT)

Price$49.27Cached quoteAs of 2026-09-07 07:47 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because solid returns already carry a sensible valuation.

The market price equals about 10.3 times trailing earnings and roughly 1.26 times second-quarter book value, meaning shareholders' equity per share. Enact earned a 13.0% return on equity in the latest quarter, so that book-value premium is defensible. The earnings multiple is not demanding, but it also leaves less obvious bargain upside after a strong share-price run. A fair valuation therefore assumes recent earnings near their current level remain broadly durable rather than falling sharply in a mortgage-credit downturn.

Big pictureProfits remain resilient, but mortgage losses are slowly moving back toward normal levels.

Revenue reached $1.24 billion in 2025, while net income was $674 million and operating cash flow was $725 million. First-half 2026 diluted earnings per share rose to $2.43 from $2.19 a year earlier. Mortgage insurance in force reached $274 billion, up 2% year over year. However, the loss ratio, meaning losses incurred divided by premiums earned, increased to 14% from 10%. Reserve releases also fell to $37 million from $48 million, suggesting unusually favorable credit benefits are gradually becoming less powerful.

Business strengthA strong capital cushion and shrinking share count protect owners while supporting steady earnings.

Enact ended the second quarter with about $5.40 billion of shareholders' equity and debt equal to only 12% of total capital. Its mortgage-insurer regulatory cushion was about $1.9 billion above required levels, providing substantial protection against claims and room for capital returns. Shares outstanding fell from 152.3 million at 2024 year-end to 138.1 million by June 2026, a decline of about 9%. Buybacks totaled $382 million in 2025 and roughly $187 million during the first half of 2026, comfortably outweighing stock-based compensation.

What could change the storyContinued share repurchases and mild credit losses could lift value, while weaker housing credit would hurt.

The bull case is straightforward: insurance in force keeps growing modestly, investment income remains healthy, claims stay contained, and excess capital funds large repurchases that raise earnings per remaining share. The bear case is more company-specific: reserve releases could fade further while new mortgage delinquencies push the loss ratio materially higher. The present valuation effectively requires annual earnings around the recent $4.7-$4.8-per-share level to remain reasonably sustainable. If normalized earnings fell toward $4 per share, the valuation would rise above twelve times earnings and look less compelling.

AI: News

Strong second quarterSecond-quarter earnings improved as new mortgage insurance grew, although credit losses increased from unusually low levels.

On August 5, 2026, Enact reported second-quarter net income of $175 million and diluted earnings of $1.25 per share, compared with $168 million and $1.11 a year earlier. New insurance written rose 15% to $15 billion, while insurance in force increased 2% to $274 billion. The offset was a higher 14% loss ratio versus 10% a year earlier. Investors therefore received evidence of continued earnings strength alongside signs that exceptionally favorable mortgage-credit conditions are gradually normalizing.

Capital return guidance raisedManagement raised planned shareholder returns after another quarter of heavy share repurchases and strong excess capital.

On August 5, Enact increased expected 2026 capital returns to $550 million-$600 million. It repurchased about 2.2 million shares for $93 million during the second quarter and another 0.7 million shares for about $30 million through July 31, leaving approximately $345 million under its existing authorization. This matters because sustained repurchases reduce the number of shares dividing future profits, supporting earnings per share, while the large regulatory capital cushion makes those distributions more credible than they would be for a thinly capitalized insurer.

Dividend increased fourteen percentEnact raised its regular dividend, reinforcing management's confidence in recurring earnings and available capital.

On May 5, 2026, Enact announced a 14% increase in its quarterly dividend, moving the payment from $0.21 to $0.24 per share. The decision followed first-quarter net income of $168 million, a $1.9 billion regulatory capital cushion, and another $93 million of quarterly share repurchases. A higher recurring dividend increases the cash owners receive directly and signals confidence in future capital generation, although mortgage insurers must still preserve enough resources to absorb losses during weaker housing and employment conditions.

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Revenue

2019

2020

2021

2022

2023

2024

2025

Net income

2019

2020

2021

2022

2023

2024

2025

Free cash flow

No reported data

Total cash / debt

CashTotal debt

2019

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$1.24B	$1.20B	$1.15B	$1.10B	$1.12B	$1.11B	$978.9M
Net income	$674.2M	$688.1M	$665.5M	$704.2M	$546.7M	$370.4M	$677.6M
Net profit margin	54.56%	57.25%	57.69%	64.30%	48.90%	33.48%	69.23%
Basic EPSper basic share	$4.54	$4.40	$4.14	$4.32	$3.36	$2.27	$4.16
Diluted EPSper diluted share	$4.52	$4.37	$4.11	$4.31	$3.36	$2.27	$4.16

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈81.23%of listed shares

Genworth Holdings, Inc.112.21M shares · May 29, 2026

View holders

Top 20 reported holders of ACT
Holder	% owned
Genworth Holdings, Inc.	≈81.23%112.21M shares
BlackRock, Inc.	3.46%4.78M shares
DIMENSIONAL FUND ADVISORS LP	2.25%3.11M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	1.27%1.76M shares
FIRST TRUST ADVISORS LP	1.17%1.62M shares
Glendon Capital Management LP	0.94%1.3M shares
STATE STREET CORP	0.91%1.26M shares
VANGUARD CAPITAL MANAGEMENT LLC	0.90%1.25M shares
LSV ASSET MANAGEMENT	0.73%1.01M shares
AMERICAN CENTURY COMPANIES INC	0.70%965.68K shares
GEODE CAPITAL MANAGEMENT, LLC	0.65%900.99K shares
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	0.64%877.58K shares
Allianz Asset Management GmbH	0.41%560.77K shares
MORGAN STANLEY	0.40%555.88K shares
Gupta Rohit	≈0.38%518.18K shares
Invesco Ltd.	0.37%509.41K shares
Bank of New York Mellon Corp	0.29%403.05K shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	0.29%398.3K shares
GOLDMAN SACHS GROUP INC	0.26%363.37K shares
HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC	0.23%316.86K shares

Percentages use 138.13M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)39$574.02M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 1, 2026Form 4	Gould BrianEVP & Chief Operations Officer	SellCommon Stock	23.0K	$41.18	$947.1K	22.3K
May 29, 2026Form 4	Genworth Holdings, Inc.TenPercentOwner	SellCommon Stock	602.4K	$42.91	$25.85M	112.21M
Apr 30, 2026Form 4	Genworth Holdings, Inc.TenPercentOwner	SellCommon Stock	560.5K	$42.55	$23.85M	112.81M
Mar 31, 2026Form 4	Genworth Holdings, Inc.TenPercentOwner	SellCommon Stock	820.6K	$40.92	$33.58M	113.37M
Mar 6, 2026Form 4	McMullen JamesController	SellCommon Stock	2.5K	$41.64	$104.1K	1.3K