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Enact Holdings, Inc. (ACT) Stock Analysis

Range Bound setup

HoldVALUE-TRAP 1/5Moderate Confidence

Financial Services · Insurance - Specialty

Hold if already holding. Not a fresh buy at $44.08, but acceptable to hold if already in. Reasons: Concentration risk — Regulatory: PMIERs/GSE eligibility; Analyst target reached - limited upside remaining.

Enact Holdings is a leading private mortgage insurer writing residential mortgage guaranty insurance in all 50 states, with $51.5B in new insurance written in 2025 across ~1,600 lender customers. Revenue comes from premiums on its primary insurance in-force portfolio; largest... Read more

$44.08+1.8% A.UpsideScore 5.5/10#8 of 10 Insurance - Specialty
QualityF-score8 / 9FCF yield9.88%
IncomeYield2.03%Payout18.18%sustainable
Stop $40.62Target $43.63(resistance)A.R:R -1.8:1
Analyst target$45.75+3.8%4 analysts
$43.63our TP
$44.08price
$45.75mean
$44
$48

Hold if already holding. Not a fresh buy at $44.08, but acceptable to hold if already in. Reasons: Concentration risk — Regulatory: PMIERs/GSE eligibility; Analyst target reached - limited upside remaining. Chart setup: RSI 41 mid-range, Bollinger mid-band. Maintain position. Not compelling to add more. Score 5.5/10, moderate confidence.

Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 70d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

Recent Developments — Enact Holdings, Inc.

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
V7 quality resilience bonus: +0.2 (Q=7.5 in RISK_OFF)
Sector modifier (Financial Services): +1.0
Strong earnings beat streak (4/4)
Risks
Concentration risk — Regulatory: PMIERs/GSE eligibility
Analyst target reached - limited upside remaining
Near 52-week high (4.4% away)

Key Metrics

P/E (TTM)9.3
P/E (Fwd)8.6
Mkt Cap$6.0B
EV/EBITDA
Profit Mgn54.5%
ROE12.9%
Rev Growth1.7%
Beta0.50
Dividend2.03%
Rating analysts9

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

IV61%elevated
Max Pain$23-49.0% vs spot

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'
  • LOWGeographicCalifornia12%
    10-K Item 1: 'our largest state concentration was in California, which represented 12% of primary RIF'
  • HIGHregulatoryPMIERs/GSE eligibility
    10-K Item 1A: 'If we are unable to continue to meet the requirements mandated by PMIERs...we may not be eligible to write new insurance on loans acquired by the GSEs, which would have a material adverse effect'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Revenue Growth
2.9
Earnings Growth
3.9

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Value Rank
1.5
Growth Rank
2.0
Quality Rank
6.5
GatesA.R:R -1.8=NEGATIVEMomentum 5.9>=5.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 70d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Moderate
RSI
41 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $41.88Resistance $44.52

Price Targets

$41
$44
A.Upside-1.0%
A.R:R-1.8:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Target reached (-9.2% upside)
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-07-29 (70d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is ACT stock a buy right now?

Hold if already holding. Not a fresh buy at $44.08, but acceptable to hold if already in. Reasons: Concentration risk — Regulatory: PMIERs/GSE eligibility; Analyst target reached - limited upside remaining. Chart setup: RSI 41 mid-range, Bollinger mid-band. Maintain position. Not compelling to add more. Target $43.63 (-1.0%), stop $40.62 (−8.5%), A.R:R -1.8:1. Score 5.5/10, moderate confidence.

What is the ACT stock price target?

Take-profit target: $43.63 (+1.8% upside). Target $43.63 (-1.0%), stop $40.62 (−8.5%), A.R:R -1.8:1. Stop-loss: $40.62.

What are the risks of investing in ACT?

Concentration risk — Regulatory: PMIERs/GSE eligibility; Analyst target reached - limited upside remaining; Near 52-week high (4.4% away).

Is ACT overvalued or undervalued?

Enact Holdings, Inc. trades at a P/E of 9.3 (forward 8.6). TrendMatrix value score: 7.4/10. Verdict: Hold.

What do analysts say about ACT?

9 analysts cover ACT with a consensus score of 3.7/5. Average price target: $46.

What does Enact Holdings, Inc. do?Enact Holdings is a leading private mortgage insurer writing residential mortgage guaranty insurance in all 50 states,...

Enact Holdings is a leading private mortgage insurer writing residential mortgage guaranty insurance in all 50 states, with $51.5B in new insurance written in 2025 across ~1,600 lender customers. Revenue comes from premiums on its primary insurance in-force portfolio; largest customer represents 22% of NIW and 12% of revenues. GSE/PMIERs eligibility is essential to the business model.

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