Genworth Holdings, Inc. (NYSE:GNW), a major shareholder in Enact Holdings, Inc. (NASDAQ:ACT), has sold a significant portion of its stake in the company. According to a recent SEC filing, Genworth disposed of 682,729 shares of Enact's common stock on October 31, 2024, at a price of $35.8992 per share. This transaction, valued at approximately $24.5 million, was conducted under a Share Repurchase Agreement between the two companies, originally dated May 1, 2024. Following this sale, Genworth Holdings retains ownership of approximately 81% of Enact's outstanding common stock, amounting to 124,813,728 shares.
In other recent news, Enact reported robust financial health and a bullish outlook in their Q2 2024 earnings call. The company noted significant growth in adjusted operating income and Insurance In-Force, with a sequential rise of 21% and a year-over-year increase of 13% to $201 million. Insurance In-Force hit a record $266 billion, both sequentially and year-over-year. Enact's strategic initiatives, such as share repurchases and a focus on long-term growth through its Enact Re platform, have positioned it well for future performance.
Despite a negative loss ratio, the company showed improvement from previous quarters, reflecting a solid reserve release and decreased delinquencies. The company also completed a $750 million debt offering and plans a substantial capital return in 2024. A voluntary separation program was implemented to improve efficiency and reduce expenses.
Enact's outlook for 2024 includes a capital return between $300 million and $350 million, driven by strong business performance and favorable economic conditions. The market size for new insurance written is anticipated to remain steady at around $285 billion. These are among the recent developments for Enact.
InvestingPro Insights
While Genworth Holdings has reduced its stake in Enact Holdings, Inc. (NASDAQ:ACT), the company's financial metrics and market performance suggest a strong position. According to InvestingPro data, Enact boasts a market capitalization of $5.04 billion and a price-to-earnings ratio of 7.76, indicating an attractive valuation relative to its earnings.
Enact's financial health is further underscored by its robust profitability. The company has maintained profitability over the last twelve months, with a gross profit margin of 77.67% and an impressive return on assets of 10.86%. These figures reflect Enact's operational efficiency and ability to generate returns for shareholders.
InvestingPro Tips highlight that analysts are optimistic about Enact's future performance, with two analysts revising their earnings estimates upward for the upcoming period. Additionally, the company's RSI suggests that the stock may be in oversold territory, potentially presenting a buying opportunity for investors.
Enact's dividend yield of 4.72% and a remarkable dividend growth of 151.56% over the last twelve months may appeal to income-focused investors. The company's year-to-date price total return of 20.06% also indicates strong market performance.
For readers interested in a deeper analysis, InvestingPro offers additional tips and insights on Enact Holdings. The platform currently lists 11 more tips that could provide valuable context for understanding the company's prospects in light of Genworth's recent share sale.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.