Enact Holdings, Inc. (ACT) - Stock Analysis
Last updated: Jan 18, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
ACT combines two strong growth stories: Aduro Clean Technologies' $20M capital raise and pilot commercialization progress in clean recycling tech, and Enact Holdings' solid Q3 insurance growth, raised capital return guidance, and stable financials. Positive momentum over the last 21 trading days (~8.5% gain) with moderate volatility supports near-term appreciation.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Very high margins ⢠Low asset turnover ⢠Strong balance sheet ACT combines exceptionally high operating margins and strong free cash flow with low asset turnover and investment-related mark-to-market pressure, supported by low leverage and TBV above market price.
Price Behavior
Key Price Behavior Insights: ⢠Sideways consolidation ⢠Resistance tested ⢠Support holding Support Level: $38.50â$39.00 Resistance Level: $40.00 (peak $40.68) ACT is consolidating last month with resistance near $40 and support around $38.50â$39, showing short-term weakness after peaking at $40.68 and retreating to $38.98.
Sentiment & News
Key News Insights: ⢠Enact upgrade ⢠Aduro $20M ⢠Expo keynote Enact Holdings was upgraded to Zacks #2 and scheduled its Q4 2025 release and Feb. 4 earnings call, Aduro Clean Technologies closed a $20M equity-and-warrant offering, and high-profile speakers were named for the 2026 ACT Expo.
AI Summary
Reârate ACT as a capitalâlight, cashâgenerative specialty insurer where returns will be driven by tangible book and freeâcashâflow dynamics and disciplined capital returns rather than topâline growth, so value the stock on TBV + normalized FCF yield and expect buybacks/dividends to be the primary upside catalyst. The key risk: monitor reserve releases/builds and OCI markâtoâmarket sensitivity (investment spread/credit moves and reinsurance counterparty costs) because adverse shifts can quickly force capital preservation and derail buybacks.
Description
Enact Holdings, Inc. is a U.S. private mortgage insurer that writes and assumes residential mortgage guaranty policies, primarily for individually underwritten, prime-quality loans, and provides contract underwriting services to mortgage lenders. Founded in 1981 and headquartered in Raleigh, North Carolina, the company changed its name from Genworth Mortgage Holdings in May 2021 and operates as a subsidiary of Genworth Holdings, Inc.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Dec 19 | Dec 26 | ACT | Enact Holdings, Inc. | ACT combines two strong growth stories: Aduro Clean Technologies' $20M capital raise and pilot commercialization progress in clean recycling tech, and Enact Holdings' solid Q3 insurance growth, raised capital return guidance, and stable financials. Positive momentum over the last 21 trading days (~8.5% gain) with moderate volatility supports near-term appreciation. | Closed | -0.8% |