Enact is a high-quality specialty insurer (55% margins, Piotroski 8/9, 2.0% dividend) with a perfect 4-quarter beat streak and attractive valuation, but the price is 13.0% above the analyst target and insiders sold $72M (1.1% of market cap). Earnings arrive in 3 days, so waiting is warranted.
Thesis pillars
- Best In Class Margins Quality→Stable
- Perfect Earnings Beat Streak↑Improving
- Cheap Valuation And Dividend→Stable
- +2 more pillars — see the Why tab for full reasoning
Pillars as of Nov 1, 2026, based on the 10-K filed Feb 27, 2026
Enact Holdings, Inc. (ACT) Stock Analysis
Breakout setup
Financial Services · Insurance - Specialty
Hold if already holding. Not a fresh buy at $48.24, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (4.6% away).
Enact Holdings underwrites private mortgage insurance for low-down-payment residential loans across all 50 U.S. states, generating new insurance written of $51.5 billion and net income of $674 million in 2025. Revenue comes from monthly, single, and annual premiums on insured... Read more
Hold if already holding. Not a fresh buy at $48.24, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (4.6% away). Chart setup: Golden cross, above all MAs, RSI 64, MACD bullish. Maintain position. Not compelling to add more. Score 5.5/10, moderate confidence.
Passes 5/7 gates (positive momentum, no SEC red flags, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and clean insider activity. Suitability: moderate.
About Enact Holdings, Inc.
About Enact Holdings, Inc.
Enact Holdings generated $51.5 billion in new insurance written in 2025, up from $51.0 billion in 2024, while reporting net income of $674 million and adjusted operating income of $688 million. Enact writes private mortgage insurance through Enact Mortgage Insurance Corporation (EMICO), an approved insurer under both Fannie Mae and Freddie Mac PMIERs, covering all 50 U.S. states and the District of Columbia. The company also operates a Bermuda-based reinsurance subsidiary, Enact Re, into which $500 million was contributed in 2023 to reinsure EMICO's in-force portfolio under quota share agreements.
Enact earns premium revenue from primary mortgage insurance — paid monthly, single, annually, or split — on low-down-payment loans where the principal exceeds 80% of home value. Coverage percentages typically range from 6% to 35% per policy, with overall risk across all policies averaging approximately 25% of primary insurance in-force. The company served approximately 1,600 customers in 2025; the largest customer accounted for 22% of new insurance written and 12% of total revenues, while the top five customers combined generated 33% of NIW in 2025, with no other single customer exceeding 10% of revenues. Enact competes against five other active private mortgage insurers — Arch Capital Group, Essent Group, MGIC Investment Corporation, NMI Holdings, and Radian Group — as well as the FHA, which held a 35% share of the mortgage insurance market for the first three quarters of 2025, and the VA at 26%.
Show full overview
Enact's GSE eligibility is governed by PMIERs, which requires EMICO's Available Assets to meet or exceed Minimum Required Assets derived from risk-in-force tables. The GSEs — operating under FHFA conservatorship — may amend PMIERs at their discretion and require prior approval for new products and inter-company agreements. EMICO must maintain an RIF-to-statutory-capital ratio at or below 18:1, a ceiling the GSEs reserve the right to enforce by revoking PMIERs credit for reinsurance transactions. Freddie Mac has imposed additional conditions on any option to commute reinsurance arrangements. A single adverse PMIERs amendment could prohibit Enact from writing new insurance on GSE-eligible loans, the source of substantially all new business volume.
See also: Financial Services · Insurance - Specialty
From Enact Holdings, Inc.'s most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated Nov 1, 2026Recent Developments — Enact Holdings, Inc.
Latest news
- NEWS Enact Holdings (ACT) Could Be 51% Undervalued On BofA Downgrade And Housing Risk - Yahoo Finance — Yahoo Finance Nov 1, 2026 negative
- NEWS BofA cuts Enact Holdings stock rating on housing policy concerns - Investing.com — Investing.com Oct 30, 2026 negative
- NEWS Can Congress Police Itself on STOCK Act Violations? - FOX 35 Orlando — FOX 35 Orlando Oct 28, 2026 neutral
- NEWS Enact Holdings, Inc. (ACT) Earnings Expected to Grow: Should You Buy? - Yahoo Finance — Yahoo Finance Oct 28, 2026 positive
- NEWS Enact (ACT) Q2 2026 Earnings Call Transcript - The Globe and Mail — The Globe and Mail Aug 12, 2026 positive
Latest item Nov 1, 2026 · Generated 2026-11-05T11:49:08Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWCustomerlargest customer12%10-K Item 1: 'Our largest customer accounted for 22% of total NIW and 12% of our total revenues for the year ended December 31, 2025'
- MEDIUMCustomertop five customers33%10-K Item 1: 'Our top five customers generated 33% of our NIW in 2025'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
10 dimensions · all in-band
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $48.24, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (4.6% away). Chart setup: Golden cross, above all MAs, RSI 64, MACD bullish. Maintain position. Not compelling to add more. Analyst target $41.06 reached (−14.9%), stop $45.88 (−5.1%), A.R:R -1.7:1. Score 5.5/10, moderate confidence.
Analyst target $41.06 reached (−14.9% from $48.24); no take-profit level is published. Analyst target $41.06 reached (−14.9%), stop $45.88 (−5.1%), A.R:R -1.7:1. Stop-loss: $45.88.
Analyst target reached - limited upside remaining; Near 52-week high (4.6% away).
Enact Holdings, Inc. trades at a P/E of 10.2 (forward 9.6). TrendMatrix value score: 7.3/10. Verdict: Hold.
11 analysts rate ACT, with a consensus score of 3.5/5. 5 analysts publish price targets averaging $47.
What does Enact Holdings, Inc. do?Enact Holdings underwrites private mortgage insurance for low-down-payment residential loans across all 50 U.S. states,...
Enact Holdings underwrites private mortgage insurance for low-down-payment residential loans across all 50 U.S. states, generating new insurance written of $51.5 billion and net income of $674 million in 2025. Revenue comes from monthly, single, and annual premiums on insured balances from approximately 1,600 lender customers. GSE eligibility rules via PMIERs effectively govern underwriting criteria and capital requirements for the company's primary insurance subsidiary, EMICO.