Essent Group (NYSE:ESNT) Shares Gap Down Following Weak Earnings

Essent Group Ltd. (NYSE:ESNT) shares gapped down before the market opened on Friday following a weaker than expected earnings announcement. 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 traded.

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 net margin of 61.31% and a return on equity of 14.40%. The firm had revenue of $3.17 billion during the quarter, compared to analyst estimates of $316.80 million. During the same period in the previous year, the company posted $1.66 EPS. Essent Group’s revenue for the quarter was up 969.2% compared to the same quarter last year.

Essent Group Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, December 11th. Stockholders of record on Monday, December 2nd will be given 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 payout ratio is 16.21%.

Analyst Ratings Changes

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

Insiders Place Their Bets

In other Essent Group news, CFO David B. Weinstock sold 2,000 shares of the company’s stock in a transaction 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 sale, the chief financial officer now directly owns 25,416 shares in the company, valued at $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 is available at the SEC website. In other news, CFO David B. Weinstock sold 2,000 shares of the stock in a transaction on Wednesday, September 18th. The stock was sold at an average price of $63.59, for a total value of $127,180.00. Following the completion of the transaction, the chief financial officer now directly owns 25,416 shares in the company, valued at approximately $1,616,203.44. This represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Roy James Kasmar sold 5,000 shares of the stock in a transaction on Tuesday, August 6th. The shares were 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 owns 27,140 shares of the company’s stock, valued at $1,596,103.40. The trade was 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

A number of large investors have recently modified their holdings of ESNT. Dimensional Fund Advisors LP increased its holdings in Essent Group by 10.5% in 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 during the period. Vanguard Group Inc. increased its holdings in Essent Group by 3.8% in the first quarter. Vanguard Group Inc. now owns 11,917,819 shares of the financial services provider’s stock valued at $709,229,000 after purchasing an additional 440,385 shares during the period. Jennison Associates LLC increased its holdings in Essent Group by 94.1% in the first quarter. Jennison Associates LLC now owns 739,688 shares of the financial services provider’s stock valued at $44,019,000 after purchasing an additional 358,621 shares during the period. AQR Capital Management LLC increased its holdings in Essent Group by 68.8% in the second quarter. AQR Capital Management LLC now owns 436,009 shares of the financial services provider’s stock valued at $24,499,000 after purchasing an additional 177,700 shares during the period. Finally, Healthcare of Ontario Pension Plan Trust Fund acquired a new stake in Essent Group in the first quarter valued at $8,742,000. 93.00% of the stock is currently owned by institutional investors.

Essent Group Price Performance

The firm has a market capitalization of $5.71 billion, a price-to-earnings ratio of 7.78, a P/E/G ratio of 1.51 and a beta of 1.12. The stock has a fifty day moving average of $62.94 and a two-hundred day moving average of $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.