Enact Holdings, Inc. (ACT) - Stock Analysis

Last updated: Jun 7, 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
$42.41
Market Cap
$5.98B
1D Return
+0.90%
YTD Return
+8.13%

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Valuation Metrics

P/E
9.0
P/B
1.1
P/S
4.8
EV/EBITDA
7.4
Div Yield
1.96%

Fundamental Analysis

8.0

Key Financial Insights: • High Margins • Strong Cash Flow • Low Asset Efficiency ACT combines exceptional margins, solid cash conversion, and low leverage with a conservative balance sheet, but its low asset turnover and investment-heavy asset base limit overall efficiency.

StrongMargins
LowLeverage

Price Behavior

5.5

Key Price Behavior Insights: • Lower-highs pattern • Support holding • Rebound capped Support Level: $40.50-$41.00 Resistance Level: $42.40-$43.80 Over the last month, ACT has drifted lower in a pattern of lower highs and lower lows, with support near $40.50-$41.00 still holding but rallies repeatedly capped by resistance around $42.40-$43.80. క

downtrend
support

Sentiment & News

4.5

Key News Insights: • TSX Listing • Patent Protection • Conference Visibility Aduro Clean Technologies' successful TSX listing and visibility push lead the news, while Actinium's patent wins and APG's ACT Expo comments add supportive momentum across clean tech and biotech.

MarketExpansion
PatentProgress
AI

AI Summary

6.5
Positive

ACT should be viewed less as a growth story and more as a capital-efficient cash-flow insurer: strong ROE, free cash flow, and balance-sheet strength support dividends/buybacks, but only modest in-force growth means upside hinges on sustained underwriting discipline and reinvestment income rather than a re-rating on top-line acceleration.

CashFlow
Underwriting
Growth
AI summary updated 5 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.