Enact Holdings Inc. (NASDAQ:ACT) has reached a significant milestone, hitting an all-time high of 34.05 USD. This achievement marks a new chapter in the company's financial history, demonstrating its robust performance and resilience in the market. Over the past year, Enact Holdings has shown a remarkable growth trajectory, with a 1-year change of 28.44%. This impressive increase underscores the company's strong financial health and its ability to deliver consistent value to its shareholders. The all-time high price level reached by Enact Holdings is a testament to its strategic initiatives and operational efficiency, positioning it well for future growth.
In other recent news, Enact has reported strong Q1 2024 results, with net income reaching $161 million and a return on equity of 14%. The company's insurance in-force hit a record high of $264 billion, bolstered by an 85% persistency rate and $11 billion in new insurance written. The insured portfolio maintains a robust credit quality, with an average FICO score of 744 and a loan-to-value ratio of 93%. The company returned $75 million to shareholders through dividends and share repurchases in Q1, and a new $250 million share repurchase authorization was approved.
Enact's leadership expressed optimism about the first-time homebuyer market and anticipates delivering capital returns in 2024 comparable to 2023 levels. However, reserve releases in Q1 2024 were $40 million, lower than the previous two quarters. Despite this, new delinquencies slightly decreased, and operating expenses were down 10% sequentially and 2% year-over-year.
These recent developments highlight Enact's strategic focus on maintaining robust credit quality and delivering consistent returns to shareholders. The management team emphasized the company's ability to navigate the macroeconomic landscape with flexibility and prudent risk management.
InvestingPro Insights
Enact Holdings Inc. (ACT) has not only reached a new price peak but also presents a compelling financial profile according to recent InvestingPro data. With a market capitalization of $5.35 billion and a P/E ratio that has slightly decreased to 8.21 in the last twelve months as of Q1 2024, the company shows a balance of value and profitability. The gross profit margin stands at an impressive 75.97%, reflecting efficient operations and strong pricing power.
InvestingPro Tips highlight that analysts have a positive outlook, having revised their earnings estimates upwards for the upcoming period, indicating confidence in the company's future performance. Additionally, the company is trading close to its 52-week high, which could suggest a strong market belief in its value proposition. It's noteworthy that analysts predict Enact Holdings will maintain profitability this year, a trend supported by its profitable performance over the last twelve months.
For investors looking to delve deeper into Enact Holdings' financials and future projections, additional InvestingPro Tips are available at https://www.investing.com/pro/ACT. To enhance your investment research experience, use the exclusive coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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