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ESNTEssent Group Ltd.Sell5.5·$59.62+2.44%
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Essent Group Ltd. (ESNT) Stock Analysis

Recovery setup

SellVALUE-TRAP 1/5Moderate Confidence

Financial Services · Insurance - Specialty

Sell if holding. Analyst target reached at $59.62 — A.R:R is negative (-0.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 8.7): -1.5.

Essent Group provides private mortgage insurance through Essent Guaranty (licensed in all 50 states), with ~$248.4B of mortgage insurance in force and ~$46.6B of new insurance written in 2025, plus reinsurance through Bermuda-based Essent Re. Revenue comes from insurance... Read more

$59.62+1.5% A.UpsideScore 5.5/10#7 of 10 Insurance - Specialty
QualityF-score8 / 9FCF yield10.95%
IncomeYield2.41%(5y avg 1.91%)Payout18.21%sustainable
Stop $57.04Target $60.50(resistance)A.R:R -0.2:1
Analyst target$67.75+13.6%8 analysts
$60.50our TP
$59.62price
$67.75mean
$73

Sell if holding. Analyst target reached at $59.62 — A.R:R is negative (-0.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 8.7): -1.5. Chart setup: Death cross but MACD improving, RSI 53. Score 5.5/10, moderate confidence.

Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 51d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

10-K grounded · weekly refresh

About Essent Group Ltd.

About Essent Group Ltd.

Essent Group insured $248.4 billion of U.S. residential mortgage risk in force at December 31, 2025, generating $46.6 billion of new insurance written during the year at an estimated private mortgage insurance penetration of roughly 15% of total U.S. origination volume. Essent Guaranty, the principal subsidiary, is a Pennsylvania-domiciled monoline mortgage guaranty insurer approved by Fannie Mae and Freddie Mac and licensed in all 50 states and the District of Columbia. Bermuda-based Essent Re entered the Lloyd's of London market beginning in the first quarter of 2026, expanding into property and casualty reinsurance.

Essent earns revenue from risk-based monthly premiums on policies that persist as long as the underlying loan-to-value ratio remains above GSE cancellation thresholds — the annual persistency rate was 85.7% at December 31, 2025. Premiums are set at origination on a spectrum of risk variables including credit score, LTV, and coverage percentage and cannot be renegotiated after issuance, creating a fixed revenue profile per cohort. The top ten lending customers generated 59.3% of NIW in 2025, a concentration that rose from 39.9% in 2023; one customer exceeded 10% of consolidated revenues. The portfolio was 97.2% fixed-rate 30-year mortgages and 41.9% FICO ≥760 by IIF at year-end, reflecting credit quality of the post-2020 origination cohorts. Essent competes with five other GSE-approved private mortgage insurers on pricing, underwriting guidelines, and service.

Show full overview

Essent's top-10 lender concentration rose from 39.9% of NIW in 2023 to 59.3% in 2025, with master policies permitting customers to cancel coverage on any insured loan at any time without penalty. The U.S. residential mortgage origination market totaled $2.05 trillion in 2025 — still constrained by elevated interest rates and high housing prices — and if volumes contract further, competition among private mortgage insurers for remaining NIW could accelerate customer consolidation, which the 10-K identifies as a material risk to revenues.

See also: Financial Services · Insurance - Specialty

From Essent Group Ltd.'s most recent 10-K filing, extracted June 10, 2026.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-06-17
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Fri, Aug 7, 202651d to earnings· next earnings call

Thesis

Rewards
High-quality business
Attractive valuation
Margin of safety: 45%
Risks
Analyst target reached - limited upside remaining
Leverage penalty (D/E 8.7): -1.5
Consecutive earnings misses (2)

Key Metrics

P/E (TTM)8.3
P/E (Fwd)7.5
Mkt Cap$5.4B
EV/EBITDA5.9
Profit Mgn53.6%
ROE12.1%
Rev Growth5.8%
Beta0.78
Dividend2.41%
Rating analysts15

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

P/C0.15bullish
IV50%elevated
Max Pain$45-24.5% vs spot

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

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers

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

Earnings Growth
3.5
Revenue Growth
3.9

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

Growth Rank
3.0
Value Rank
3.5
Quality Rank
4.0
GatesA.R:R -0.2=NEGATIVEMomentum 4.5<5.5 (soft — BUY_NOW allowed but watch)Momentum 4.5>=4.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 51d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRecoverySuitability: Moderate
RSI
53 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $55.34Resistance $61.73

Price Targets

$57
$61
A.Upside+1.5%
A.R:R-0.2:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-1.1% upside)
! NEWS_MOD=-2: STRONG_BUY_WAIT → SELL_IF_HOLDING
! Negative risk/reward — downside exceeds upside

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-08-07 (51d)

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 ESNT stock a buy right now?

Sell if holding. Analyst target reached at $59.62 — A.R:R is negative (-0.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 8.7): -1.5. Chart setup: Death cross but MACD improving, RSI 53. Prior stop was $57.04. Score 5.5/10, moderate confidence.

What is the ESNT stock price target?

Take-profit target: $60.50 (+1.5% upside). Prior stop was $57.04. Stop-loss: $57.04.

What are the risks of investing in ESNT?

Analyst target reached - limited upside remaining; Leverage penalty (D/E 8.7): -1.5; Consecutive earnings misses (2).

Is ESNT overvalued or undervalued?

Essent Group Ltd. trades at a P/E of 8.3 (forward 7.5). TrendMatrix value score: 7.5/10. Verdict: Sell.

What do analysts say about ESNT?

15 analysts cover ESNT with a consensus score of 3.7/5. Average price target: $68.

What does Essent Group Ltd. do?Essent Group provides private mortgage insurance through Essent Guaranty (licensed in all 50 states), with ~$248.4B of...

Essent Group provides private mortgage insurance through Essent Guaranty (licensed in all 50 states), with ~$248.4B of mortgage insurance in force and ~$46.6B of new insurance written in 2025, plus reinsurance through Bermuda-based Essent Re. Revenue comes from insurance premiums on residential first-lien mortgages, with top-10 lending customers generating 59.3% of new insurance written in 2025.

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