Essent Group Ltd (NYSE: ESNT)’s stock price has increased by 0.43 compared to its previous closing price of 55.73. However, the company has seen a 1.71% increase in its stock price over the last five trading sessions. seekingalpha.com reported 2024-05-19 that For income investors, closed-end funds remain an attractive investment class that covers various asset classes and promises high distributions and reasonable total returns. Closed-end funds, or CEFs, are generally characterized by higher volatility and deeper draw-downs than the broader market. For these reasons, they are not suited for everyone. In this monthly series, we highlight five CEFs with solid track records that pay high distributions and offer “excess” discounts. We try to separate the wheat from the chaff using our filtering process to select just five CEFs every month from around 500 closed-end funds.
Is It Worth Investing in Essent Group Ltd (NYSE: ESNT) Right Now?
The price-to-earnings ratio for Essent Group Ltd (NYSE: ESNT) is 8.46x, which is above its average ratio. Moreover, the 36-month beta value for ESNT is 1.10. Analysts have varying opinions on the stock, with 3 analysts rating it as a “buy,” 4 as “overweight,” 5 as “hold,” and 0 as “sell.”
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The public float for ESNT is 103.29M and currently, short sellers hold a 0.80% of that float. On June 19, 2024, ESNT’s average trading volume was 483.20K shares.
ESNT’s Market Performance
ESNT’s stock has seen a 1.71% increase for the week, with a -1.51% drop in the past month and a 0.20% gain in the past quarter. The volatility ratio for the week is 1.89%, and the volatility levels for the past 30 days are at 1.66% for Essent Group Ltd The simple moving average for the past 20 days is -0.38% for ESNT’s stock, with a 6.81% simple moving average for the past 200 days.
Analysts’ Opinion of ESNT
Many brokerage firms have already submitted their reports for ESNT stocks, with JP Morgan repeating the rating for ESNT by listing it as a “Neutral.” The predicted price for ESNT in the upcoming period, according to JP Morgan is $61 based on the research report published on April 03, 2024 of the current year 2024.
UBS, on the other hand, stated in their research note that they expect to see ESNT reach a price target of $54. The rating they have provided for ESNT stocks is “Neutral” according to the report published on December 06th, 2023.
Barclays gave a rating of “Overweight” to ESNT, setting the target price at $60 in the report published on November 15th of the previous year.
ESNT Trading at 1.18% from the 50-Day Moving Average
After a stumble in the market that brought ESNT to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -6.56% of loss for the given period.
Volatility was left at 1.66%, however, over the last 30 days, the volatility rate increased by 1.89%, as shares surge +0.16% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -1.48% lower at present.
During the last 5 trading sessions, ESNT rose by +1.71%, which changed the moving average for the period of 200-days by +11.45% in comparison to the 20-day moving average, which settled at $56.19. In addition, Essent Group Ltd saw 6.12% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at ESNT starting from PAULS DOUGLAS J, who sale 2,500 shares at the price of $56.12 back on May 09 ’24. After this action, PAULS DOUGLAS J now owns 27,112 shares of Essent Group Ltd, valued at $140,300 using the latest closing price.
Bhasin Vijay, the SVP and Chief Risk Officer of Essent Group Ltd, sale 12,925 shares at $55.05 during a trade that took place back on Jan 19 ’24, which means that Bhasin Vijay is holding 201,519 shares at $711,521 based on the most recent closing price.
Stock Fundamentals for ESNT
Current profitability levels for the company are sitting at:
- 0.74 for the present operating margin
- 0.82 for the gross margin
The net margin for Essent Group Ltd stands at 0.61. The total capital return value is set at 0.13. Equity return is now at value 14.32, with 11.32 for asset returns.
Based on Essent Group Ltd (ESNT), the company’s capital structure generated 0.14 points at debt to capital in total, while cash flow to debt ratio is standing at 0.94. The debt to equity ratio resting at 0.16. The interest coverage ratio of the stock is 27.29.
Currently, EBITDA for the company is 4.53 million with net debt to EBITDA at 0.63. When we switch over and look at the enterprise to sales, we see a ratio of 5.42. The receivables turnover for the company is 16.68for trailing twelve months and the total asset turnover is 0.18. The liquidity ratio also appears to be rather interesting for investors as it stands at 10.28.
Conclusion
To wrap up, the performance of Essent Group Ltd (ESNT) has been better in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
