In a significant transaction, Genworth Holdings, Inc. has sold a portion of its shares in Enact Holdings, Inc. (NASDAQ:ACT), according to the latest regulatory filings. The sale, which occurred on July 31, 2024, involved Genworth Holdings offloading 337,312 shares of Enact Holdings at a price of $31.0111 per share, resulting in a total transaction value of approximately $10.46 million.
This sale was executed under a Share Repurchase Agreement between the two companies, as stated in the footnotes of the filing. The price per share was determined based on a weighted average of prices paid by Enact Holdings for purchases from third parties, as outlined in the Agreement.
Post-transaction, Genworth Holdings continues to hold a substantial stake in Enact Holdings, with approximately 81% of the outstanding shares, highlighting its ongoing major ownership position.
The transaction was signed off by Lisa J. Baldyga, Vice President and Treasurer of Genworth Holdings, on behalf of the company. Investors and market watchers often keep a close eye on such filings for insights into the actions of major shareholders and their view on the company's value.
Enact Holdings, with its business address in Raleigh, North Carolina, operates within the insurance agents, brokers, and service industry. The company, formerly known as Genworth Mortgage Holdings, Inc., underwent a name change in September 2020.
Investors who follow the movements of Genworth Holdings and Enact Holdings will note this transaction as part of their broader assessment of the market and individual investment strategies.
In other recent news, Enact has disclosed impressive Q1 2024 results, with a net income of $161 million and a 14% return on equity. The company's insurance in-force reached a record $264 billion, driven by robust policy persistency and substantial new insurance written. The insured portfolio continues to exhibit strong credit quality, with an average FICO score of 744 and a loan-to-value ratio of 93%.
Enact's management expressed optimism about the first-time homebuyer market and anticipates delivering capital returns in 2024 similar to the $300 million returned to shareholders in 2023. The company returned $75 million to shareholders through dividends and share repurchases in Q1 2024, and a new $250 million share repurchase authorization was approved.
However, reserve releases in Q1 2024 were $40 million, a decrease from the previous two quarters. Despite this, new delinquencies slightly decreased, and operating expenses were down 10% sequentially and 2% year-over-year. These are the recent developments for Enact, as reported in their latest earnings call.
InvestingPro Insights
Enact Holdings, Inc. (NASDAQ:ACT) has been a subject of interest following the recent share sale by Genworth Holdings. As investors analyze the implications of this transaction, several metrics and insights from InvestingPro stand out. The company's market capitalization is currently valued at approximately $5.28 billion, reflecting a substantial presence in the insurance industry. This aligns with Genworth Holdings' decision to maintain a major stake in the company, suggesting confidence in Enact Holdings' market position and future prospects.
One key metric that stands out is the company's price-to-earnings (P/E) ratio, which as of the last twelve months stands at a competitive 8.1. This figure indicates that the company may be reasonably valued compared to its earnings, which is a positive sign for potential investors. Additionally, Enact Holdings has experienced a revenue growth of 5.24% over the last twelve months, demonstrating a steady increase in its business operations. The company's gross profit margin is also robust at 75.97%, indicating efficient management and a strong position within its sector.
InvestingPro Tips further enrich the outlook for Enact Holdings. Analysts have recently revised their earnings upwards for the upcoming period, signaling optimism about the company's financial performance. Furthermore, there is a consensus among analysts that Enact Holdings will be profitable this year, a sentiment that is corroborated by the company's profitability over the last twelve months. For those interested in a deeper dive, InvestingPro offers additional tips to help investors make informed decisions. There are currently 12 more InvestingPro Tips available, which can be found on the InvestingPro platform.
Overall, the financial health and market sentiment surrounding Enact Holdings suggest a positive outlook, which may have influenced Genworth Holdings' strategic decision to retain a significant ownership share post-transaction. For investors looking to follow Enact Holdings closely, these metrics and insights can be crucial in shaping investment strategies.
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