Essent Group (NYSE:ESNT) Shares Gap Down After Earnings Miss

Essent Group Ltd. (NYSE:ESNT)’s share price gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $60.01, but opened at $57.50. Essent Group shares last traded at $54.19, with a volume of 193,645 shares.

The financial services provider reported $1.65 EPS for the quarter, missing the consensus estimate of $1.70 by ($0.05). Essent Group had a return on equity of 14.40% and a net margin of 61.31%. The business had revenue of $3.17 billion during the quarter, compared to analyst estimates of $316.80 million. During the same quarter last year, the firm posted $1.66 EPS. The company’s revenue was up 969.2% compared to the same quarter last year.

Essent Group Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, December 11th. Investors of record on Monday, December 2nd will be paid a $0.28 dividend. This represents a $1.12 annualized dividend and a dividend yield of 2.08%. The ex-dividend date of this dividend is Monday, December 2nd. Essent Group’s dividend payout ratio (DPR) is 16.21%.

Analyst Ratings Changes

Several research analysts recently commented on the company. JPMorgan Chase & Co. boosted their price target on Essent Group from $63.00 to $68.00 and gave the stock a “neutral” rating in a research note on Monday, October 7th. Barclays boosted their price objective on Essent Group from $64.00 to $72.00 and gave the company an “overweight” rating in a report on Tuesday, October 8th. Keefe, Bruyette & Woods raised Essent Group from a “market perform” rating to an “outperform” rating and boosted their price objective for the company from $65.00 to $70.00 in a report on Monday, August 5th. Royal Bank of Canada boosted their price objective on Essent Group from $61.00 to $67.00 and gave the company an “outperform” rating in a report on Monday, August 5th. Finally, BTIG Research boosted their price objective on Essent Group from $61.00 to $64.00 and gave the company a “buy” rating in a report on Monday, August 5th. Three equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $66.50.

Insider Activity

In other news, CFO David B. Weinstock sold 2,000 shares of the company’s stock in a transaction that occurred on Wednesday, September 18th. The stock was sold at an average price of $63.59, for a total transaction of $127,180.00. Following the completion of the transaction, the chief financial officer now directly owns 25,416 shares of the company’s stock, valued at approximately $1,616,203.44. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, Director Roy James Kasmar sold 5,000 shares of the stock in a transaction that occurred on Tuesday, August 6th. The stock was sold at an average price of $58.81, for a total value of $294,050.00. Following the completion of the transaction, the director now directly owns 27,140 shares of the company’s stock, valued at $1,596,103.40. This represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO David B. Weinstock sold 2,000 shares of the firm’s stock in a transaction that occurred on Wednesday, September 18th. The shares were sold at an average price of $63.59, for a total value of $127,180.00. Following the completion of the sale, the chief financial officer now owns 25,416 shares in the company, valued at approximately $1,616,203.44. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Dimensional Fund Advisors LP raised its stake in shares of Essent Group by 10.5% during the second quarter. Dimensional Fund Advisors LP now owns 4,680,074 shares of the financial services provider’s stock valued at $262,973,000 after purchasing an additional 445,853 shares in the last quarter. Vanguard Group Inc. raised its position in shares of Essent Group by 3.8% during the 1st quarter. Vanguard Group Inc. now owns 11,917,819 shares of the financial services provider’s stock worth $709,229,000 after buying an additional 440,385 shares in the last quarter. Jennison Associates LLC lifted its stake in shares of Essent Group by 94.1% in the 1st quarter. Jennison Associates LLC now owns 739,688 shares of the financial services provider’s stock worth $44,019,000 after acquiring an additional 358,621 shares during the period. AQR Capital Management LLC lifted its stake in shares of Essent Group by 68.8% in the 2nd quarter. AQR Capital Management LLC now owns 436,009 shares of the financial services provider’s stock worth $24,499,000 after acquiring an additional 177,700 shares during the period. Finally, Healthcare of Ontario Pension Plan Trust Fund bought a new position in shares of Essent Group in the first quarter valued at approximately $8,742,000. Institutional investors own 93.00% of the company’s stock.

Essent Group Stock Down 10.4 %

The firm has a market cap of $5.71 billion, a price-to-earnings ratio of 7.78, a price-to-earnings-growth ratio of 1.51 and a beta of 1.12. The stock’s 50 day moving average is $62.94 and its 200 day moving average is $59.30.

Essent Group Company Profile

Essent Group Ltd., through its subsidiaries, provides private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. Its mortgage insurance products include primary, pool, and master policy. The company also provides information technology maintenance and development services; customer support-related services; underwriting consulting; and contract underwriting services, as well as risk management products and title insurance and settlement services.