Last Updated: 18 Sep 2024
Executive Summary
Enact Holdings Inc. (ACT) is a leading insurance agency and brokerage firm with a market capitalization of $5.62 billion. The company has a strong financial position with a trailing PE ratio of 8.68, a dividend yield of 0.0205, and a return on equity of 0.145. Analysts are bullish on ACT, with a consensus target price of $38.3 and a majority of analysts recommending a buy or strong buy.
Company Overview
Enact Holdings Inc. provides a range of insurance products and services to individuals, families, and businesses. The company operates through two segments: Retail and Wholesale. The Retail segment offers personal lines insurance, including auto, home, and life insurance. The Wholesale segment provides commercial lines insurance, including property and casualty insurance.
Fundamental Analysis
Revenue: ACT's revenue has grown steadily in recent years, reaching $1.19 billion in the latest quarter. The company's revenue growth is driven by strong demand for its insurance products and services.
Earnings: ACT's earnings have also grown steadily in recent years, reaching $4.16 per share in the latest quarter. The company's earnings growth is driven by its strong revenue growth and its ability to control costs.
Profitability: ACT's profitability metrics are strong. The company's profit margin is 0.562, and its operating margin is 0.88. These metrics indicate that ACT is a highly profitable company.
Valuation: ACT is currently trading at a trailing PE ratio of 8.68. This valuation is attractive compared to the company's peers.
Technical Analysis
Trend: ACT's stock price is currently in an uptrend. The stock price has been making higher highs and higher lows since early 2023.
Support and Resistance: The stock price is currently trading above its 50-day and 200-day moving averages. These moving averages provide support for the stock price. The stock price is also trading below its 52-week high of $36.96. This level provides resistance for the stock price.
Momentum: The stock price is currently showing positive momentum. The MACD indicator is above the signal line, and the RSI indicator is above 50. These indicators suggest that the stock price is likely to continue to rise.
Short Term Outlook
The short-term outlook for ACT is positive. The stock price is currently in an uptrend, and the technical indicators are positive. The stock price is likely to continue to rise in the short term.
Long Term Outlook
The long-term outlook for ACT is also positive. The company has a strong financial position and is well-positioned to continue to grow its revenue and earnings. The company's valuation is attractive compared to its peers. The stock price is likely to continue to rise in the long term.
Analyst Recommendations
Analysts are bullish on ACT. The consensus target price for the stock is $38.3. Three analysts recommend a strong buy, one analyst recommends a buy, and three analysts recommend a hold. No analysts recommend a sell or strong sell.
