RALEIGH - Enact Holdings, Inc. (NASDAQ:ACT), a prominent private mortgage insurance provider, declared today a 16% increase in its quarterly dividend to $0.185 per share. The dividend is scheduled for payment on June 13, 2024, to shareholders on record as of May 29, 2024. The company also announced a new share repurchase program, allowing for the buyback of up to $250 million in common stock.
This new repurchase authorization comes in addition to an existing $100 million program, which has $24 million remaining as of April 26, 2024. The decision to enhance shareholder returns reflects the company's solid financial standing and its commitment to long-term value creation, according to Rohit Gupta, Enact's President and CEO.
Enact's approach to repurchasing shares will be flexible, employing methods such as open market purchases and privately negotiated transactions. The timing and volume of buybacks will be based on various factors, including stock price, capital availability, and broader market conditions. There is no obligation for Enact to repurchase any specific number of shares, and the program may be suspended or discontinued at the company's discretion.
Supporting the repurchase strategy, Enact has agreed with Genworth Holdings, Inc. to rebuy shares proportionally. The program's flexibility is underscored by the absence of an expiration date and the possibility of adjustments in response to regulatory and market conditions.
Enact, headquartered in Raleigh, North Carolina, has been a key player in the U.S. private mortgage insurance market since 1981. The company focuses on aiding homeownership and ensuring stability for homeowners, working closely with lenders to provide expert underwriting and risk management services.
This news is based on a press release statement from Enact Holdings, Inc.
InvestingPro Insights
Enact Holdings, Inc. (NASDAQ:ACT) has shown a strong financial performance that is catching the eyes of analysts and investors alike. The company's recent announcement of an increased quarterly dividend and an expanded share repurchase program underscores its robust financial health and commitment to shareholder value. Here's a glance at some key metrics and insights from InvestingPro that highlight Enact's current market position:
With a market capitalization of $4.74 billion, Enact is trading at an attractive earnings multiple, with a P/E ratio of 7.25. This valuation is further supported by the adjusted P/E ratio for the last twelve months as of Q4 2023, which stands slightly lower at 7.12. Such a low earnings multiple may suggest that the stock is undervalued compared to its earnings potential, an InvestingPro Tip that could be of interest to value investors.
Another InvestingPro Tip points out that analysts have revised their earnings upwards for the upcoming period, indicating a positive outlook on the company's profitability. This is in line with the analysts' predictions that Enact will be profitable this year, a sentiment bolstered by the company's profitability over the last twelve months.
Furthermore, Enact's gross profit margin for the last twelve months as of Q4 2023 was a robust 78.29%, reflecting efficient operations and strong pricing power. The company's commitment to shareholder returns is also evident in its significant dividend growth over the last twelve months, which was 169.64%. The dividend yield as of December 2022 stood at an attractive 5.08%.
Investors looking for more in-depth analysis and additional InvestingPro Tips can explore further insights on Enact Holdings, Inc. by visiting InvestingPro. There are numerous additional tips available on the platform, and with the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable investment information.
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