Enact Holdings, Inc. (ACT) - Stock Analysis

Last updated: Apr 25, 2026

Financial ServicesClosed

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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Idea window: 12/19/2025 – 12/26/2025Sector: Financial Services

AI Analyst Overview

Last Price
$43.90
Market Cap
$6.20B
1D Return
-0.07%
YTD Return
+11.31%

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Valuation Metrics

P/E
9.4
P/B
1.2
P/S
5.0
EV/EBITDA
7.6
Div Yield
1.91%

Fundamental Analysis

8.0

Key Financial Insights: • High Margins • Low Leverage • Weak Asset Turnover ACT shows strong profitability, solid cash generation, low leverage, and a modest valuation, but its very low asset turnover and somewhat volatile cash deployment temper the overall investment case.

profitable
balanced

Price Behavior

6.0

Key Price Behavior Insights: • Higher lows • Resistance test • Support holding Support Level: $41.8-$42.0 Resistance Level: $43.9-$44.0 ACT has trended higher over the last month, but with price now testing $43.9–$44.0 resistance, buyers need to hold the $41.8–$42.0 support zone to keep the uptrend intact.

bullish
caution

Sentiment & News

6.0

Key News Insights: • Upgrade momentum • Earnings catalyst • Tech expansion ACT news is split between improving sentiment and near-term earnings focus for Enact Holdings, and ongoing strategic/technology progress for Aduro Clean Technologies.

positive
neutral
AI

AI Summary

7.0
Positive

ACT should now be viewed primarily as a disciplined capital-return compounder—not a fast-growth turnaround—because it is delivering solid ROE, strong cash flow, and aggressive buybacks, but upside likely depends more on sustained mortgage/housing stability and continued share repurchases than on meaningful top-line acceleration.

CapitalReturn
HousingRisk
Compounder
AI summary updated 3 days ago

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

DateCloseTickerCompanySummaryStatusP/L
Dec 19Dec 26ACTEnact 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%
Research content for educational purposes only. Not investment advice. All decisions are your responsibility.