BofA update shows where active managers are putting money
RALEIGH, N.C. - Enact Holdings, Inc. (NASDAQ:ACT), a prominent U.S. private mortgage insurance provider with a market capitalization of $5.4 billion, has announced a 14% increase in its quarterly dividend and the authorization of an additional stock repurchase program. The company’s Board of Directors declared the quarterly dividend to be $0.21 per common share, payable on June 11, 2025, to shareholders of record as of May 19, 2025. The new dividend represents a yield of 2.08%, according to InvestingPro data.
In a move to further return value to shareholders, Enact’s Board has also authorized a new share repurchase program, allowing the company to buy back up to $350 million of its common stock. This new plan comes on top of the existing $250 million program, which has $6 million remaining as of April 25, 2025. The company’s strong financial position, evidenced by its impressive 78.6% gross profit margin and healthy return on equity of 14%, supports these shareholder-friendly initiatives. For deeper insights into Enact’s financial health and valuation metrics, investors can access the comprehensive Pro Research Report available on InvestingPro.
Rohit Gupta, President and CEO of Enact, stated that the increased dividend and new repurchase program reflect the company’s ongoing commitment to shareholder value, noting that Enact has consistently raised its quarterly dividend since its inception three years ago. The company’s financial strength is reflected in its "GREAT" financial health score from InvestingPro, supported by strong metrics including a P/E ratio of 8.1 and revenue growth of 4.17% over the last twelve months. Gupta emphasized the company’s strong financial performance and expressed confidence in its business strategy.
The repurchase program permits Enact to acquire shares through various methods, such as open market purchases and privately negotiated transactions, and may be executed under Rule 10b5-1 and Rule 10b-18 trading plans. The timing and volume of repurchases will be based on several factors, including share price, capital availability, and market conditions. Enact has also reached an agreement with Genworth Holdings, Inc. to repurchase shares from Genworth as part of the program to maintain its current ownership interest in Enact.
Enact clarified that the new repurchase program does not obligate the company to purchase any specific number of shares and can be suspended or terminated at any time at the company’s discretion, without prior notice.
Enact Holdings, Inc., through its subsidiary Enact Mortgage Insurance Corporation, has been a fixture in the mortgage insurance industry since 1981. The company is headquartered in Raleigh, North Carolina, and is dedicated to facilitating homeownership and supporting sustainable community development.
This news is based on a recent press release statement from Enact Holdings, Inc.
In other recent news, Enact Holdings is set to join the S&P SmallCap 600 index, replacing SolarWinds Corp. This change comes as SolarWinds is being acquired by Turn/River Capital, with the transition expected to occur on April 16, 2025. The inclusion of Enact Holdings in the index could potentially enhance the company’s stock visibility and liquidity. Meanwhile, Genworth Financial has announced the appointment of Steven C. Van Wyk to its Board of Directors, expanding the board to ten members. Van Wyk, formerly of HSBC Bank PLC, brings substantial expertise in technology and business transformation. Additionally, Enact Holdings has appointed H. Elizabeth Mitchell as an independent director to its Board of Directors, with Mitchell also joining the Audit Committee. This appointment comes as Anne G. Waleski plans not to seek re-election at the upcoming Annual Shareholder Meeting. These developments reflect ongoing strategic adjustments within both Enact Holdings and Genworth Financial.
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