In a recent transaction, Genworth Holdings, Inc., a major shareholder in Enact Holdings, Inc. (NASDAQ:ACT), sold 673,037 shares of the company's common stock at a price of $35.9971 per share, amounting to a total value of approximately $24.2 million. The sale took place on September 30, 2024, as reported in a regulatory filing with the Securities and Exchange Commission.
The transaction was conducted under a Share Repurchase Agreement between Enact Holdings, Inc. and Genworth Holdings, Inc., which was previously disclosed in Enact Holdings' Form 10-Q for the quarter ended March 31, 2024. According to the terms of the agreement, the price per share was determined based on a weighted average of the price paid by the issuer for purchases from third parties.
Following the sale, Genworth Holdings, Inc. continues to own a substantial stake in Enact Holdings, Inc., with approximately 81% of the outstanding shares of common stock. The sale is part of a planned divestiture under the previously mentioned agreement.
Investors and market watchers often keep a close eye on insider transactions as they can provide insights into the company's performance and insider perspectives on the value of the stock. Such sales are routine and can occur for various reasons, including diversification of personal investment portfolios, tax planning, or other financial planning considerations.
The transaction was signed off by Lisa J. Baldyga, Vice President and Treasurer of Genworth Holdings, Inc., on behalf of the company. Enact Holdings, Inc. specializes in insurance agents, brokers, and services, and operates out of Raleigh, North Carolina.
In other recent news, Enact's Q2 2024 financial performance report indicates a robust financial health and a bullish outlook. The company reported a significant year-over-year and sequential growth in adjusted operating income and insurance in-force, reaching a record $266 billion. Enact's strategic initiatives, including a $49 million share repurchase and a focus on long-term growth through its GSE credit risk transfer platform, Enact Re, have positioned the company well for future performance. Despite a negative loss ratio, the company showed improvement compared to previous quarters due to a solid reserve release and decreased delinquencies. Enact completed a $750 million debt offering and plans for a substantial capital return in 2024. Regarding the housing market, the company noted stability in most sales markets and is keeping a watchful eye on unemployment and housing market balance. These are recent developments that indicate a strong business performance and favorable economic conditions for Enact.
InvestingPro Insights
Enact Holdings, Inc. (NASDAQ:ACT) has been showing strong performance indicators, which may provide context to the recent insider transaction. According to InvestingPro data, the company's stock is trading near its 52-week high, with a Price % of 52 Week High at 97.9%. This aligns with the InvestingPro Tip that ACT has shown a strong return over the last three months, with a 3 Month Price Total Return of 17.77%.
The company's financial health appears robust, with a P/E Ratio of 8.68, suggesting it may be undervalued compared to industry peers. Additionally, Enact Holdings boasts a healthy dividend yield of 4.43%, with a remarkable dividend growth of 151.56% over the last twelve months. This strong dividend performance could be attractive to investors seeking income-generating stocks.
InvestingPro Tips also highlight that 4 analysts have revised their earnings upwards for the upcoming period, indicating positive sentiment about the company's future performance. Moreover, ACT has been profitable over the last twelve months, with analysts predicting continued profitability this year.
For investors interested in a deeper analysis, InvestingPro offers 6 additional tips for Enact Holdings, providing a more comprehensive view of the company's potential. These insights could be particularly valuable in light of the recent insider sale and the company's strong market position.
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