Enact Holdings is a high-quality specialty insurance franchise with exceptional margins and a consistent earnings beat record, but with only 1.8% headroom to near-term resistance, unfavorable risk/reward geometry, and 16% short interest, the current entry offers limited return potential.
Thesis pillars
- Elevated Short Interest Structural Overhang→Stable
- High Quality Margins Rule Of 40→Stable
- Consistent Earnings Beat Streak→Stable
- +1 more pillar — see the Why tab for full reasoning
Enact Holdings, Inc. (ACT) Stock Analysis
Catalyst-Driven edge
Financial Services · Insurance - Specialty
Sell if holding. Analyst target reached at $45.34 — A.R:R is negative (-1.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (1.4% 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
Sell if holding. Analyst target reached at $45.34 — A.R:R is negative (-1.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (1.4% away). Chart setup: No clear chart pattern; technical signals are mixed. Score 5.1/10, moderate confidence.
Passes 6/9 gates (positive momentum, no SEC red flags, news events none recent, earnings proximity 26d clear, 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 2026-07-06Recent Developments — Enact Holdings, Inc.
Latest news
- NEWS Enact Holdings reaches 80-plus relative strength rating benchmark - MSN — MSN positive
- NEWS ACT vs. AEG: Which Stock Is the Better Value Option? - Yahoo Finance — Yahoo Finance neutral
- NEWS BofA Securities Maintains Enact Holdings(ACT.US) With Buy Rating, Raises Target Price to $49 - 富途牛牛 — 富途牛牛 positive
- NEWS Enact Holdings (ACT) Upgraded to Buy: Here's Why - Yahoo Finance — Yahoo Finance positive
- NEWS BofA cuts Enact Holdings stock price target on higher losses - Investing.com — Investing.com negative
Generated 2026-07-06T05:40:26Z.
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.
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Rating Breakdown
2 floor-breakers
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $45.34 — A.R:R is negative (-1.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (1.4% away). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $43.46. Score 5.1/10, moderate confidence.
Take-profit target: $45.08 (-0.6% upside). Prior stop was $43.46. Stop-loss: $43.46.
Analyst target reached - limited upside remaining; Near 52-week high (1.4% away); Weak growth.
Enact Holdings, Inc. trades at a P/E of 9.8 (forward 9.2). TrendMatrix value score: 7.1/10. Verdict: Sell.
10 analysts cover ACT with a consensus score of 3.6/5. Average price target: $46.
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.