Essent Group (NYSE:ESNT) Reports Quarterly Earnings Results

Essent Group (NYSE:ESNT) announced its latest earnings results on Friday, revealing that the financial services provider recorded earnings of $1.58 per share for the quarter. This figure was below the analysts’ predictions, which estimated earnings of $1.67 per share, indicating a miss of $0.09. The company reported a revenue of $315.00 million for the quarter, which slightly exceeded the consensus estimate of $313.88 million.

In terms of performance metrics, Essent Group achieved a net margin of 60.15% and a return on equity of 13.81%. Additionally, the firm's revenue showed a 6.0% increase compared to the same quarter last year. In the previous year’s corresponding quarter, the company had reported earnings of $1.64 per share.

Essent Group Share Performance

On the trading day following the earnings announcement, shares of Essent Group experienced a decline of 2.2%, falling by $1.30 to reach $56.61. The trading volume was 572,393 shares, contrasted with the company’s average trading volume of 737,477 shares. Essent Group currently holds a market capitalization of $6.01 billion with a price-to-earnings (P/E) ratio of 8.19. Its price-to-earnings growth (PEG) ratio stands at 2.75, while it has a beta of 1.11, indicating its volatility relative to the market. The firm’s 50-day moving average sits at $56.12, and the 200-day moving average is $59.14. Shares have ranged from a 52-week low of $51.69 to a high of $65.33.

Recent Analyst Ratings

Analysts have recently provided varied ratings for Essent Group. On December 9th, JPMorgan Chase & Co. lowered their price target from $67.00 to $60.00 and maintained a 'neutral' rating. Meanwhile, Keefe, Bruyette & Woods adjusted their target price from $75.00 to $72.00, rating the stock as 'outperform' as of January 8th. The Goldman Sachs Group shifted their price target down from $68.00 to $60.00, also assigning a 'neutral' rating. Similarly, Barclays adjusted their rating from 'overweight' to 'equal weight' and cut their price target from $69.00 to $58.00 on January 6th. In a report on November 4th, Royal Bank of Canada reduced their price target from $73.00 to $67.00 while maintaining an 'outperform' rating. There are currently five investment analysts who have rated Essent Group with a hold rating, and three have given it a buy rating, resulting in a consensus rating of 'Hold' and an average target price of $62.71 according to MarketBeat.com.

About Essent Group

Essent Group Ltd., through its subsidiaries, specializes in providing private mortgage insurance and reinsurance for mortgages secured by residential properties in the United States. Its range of mortgage insurance products includes primary, pool, and master policies. Apart from this, the company offers various services, such as information technology maintenance and development, customer support services, underwriting consulting, contract underwriting services, as well as risk management and title insurance services.

Essent, Earnings, Stocks