In a recent transaction, Genworth Holdings, Inc., a significant shareholder in Enact Holdings, Inc. (NASDAQ:ACT), sold a substantial number of shares in the company. The sale involved 274,903 shares of common stock at a price of $28.8978 per share, totaling approximately $7.94 million.
The sale took place on March 28, 2024, and was reported in accordance with the requirements for significant shareholders. According to the details provided in the filing, the transaction was executed under a Share Repurchase Agreement between Enact Holdings and Genworth Holdings, which was established on August 1, 2023. The price per share for this transaction was determined based on a weighted average price paid by Enact Holdings for purchases from third parties, as outlined in the agreement.
Following this sale, Genworth Holdings remains a major investor in Enact Holdings, retaining ownership of approximately 81.6% of the insurer's outstanding common stock. The filing indicated that the sale was a direct transaction, signifying that the shares were owned directly by Genworth Holdings.
Investors often monitor such sales closely, as they can provide insights into the sentiment of significant shareholders regarding the company's performance and future prospects. However, it is important to note that the reasons for such sales can vary and may not necessarily reflect a change in the shareholder's view of the company's value or potential.
Enact Holdings, specializing in mortgage insurance, operates within the financial sector and is headquartered in Raleigh, North Carolina. The company, formerly known as Genworth Mortgage Holdings, Inc., has a history of providing services related to insurance agents, brokers, and service-related activities.
The transaction was duly signed by Lisa J. Baldyga, Vice President and Treasurer on behalf of Genworth Holdings, Inc., and filed with the SEC on April 1, 2024.
InvestingPro Insights
Enact Holdings, Inc. (NASDAQ:ACT) has recently been the subject of significant shareholder activity, with Genworth Holdings, Inc. selling a large number of shares. In light of this event, it's worth considering the company's performance metrics and market sentiment as reflected by InvestingPro data and tips.
InvestingPro data reveals that Enact Holdings has a market capitalization of $4.89 billion, with a strong P/E ratio of 7.43, which is slightly adjusted to 7.35 when considering the last twelve months as of Q4 2023. This suggests that the company is potentially undervalued relative to its earnings. Moreover, the company has demonstrated a solid revenue growth of 5.36% over the last twelve months as of Q4 2023, indicating a steady increase in its financial performance.
Two InvestingPro Tips that stand out for Enact Holdings are the stock's RSI indicating it is in overbought territory and the fact that it is trading near its 52-week high. The stock's strong return over the last month, with a 12.56% increase, could be a contributing factor to the current RSI levels. Additionally, analysts predict that the company will be profitable this year, which aligns with its positive performance over the last twelve months.
For investors interested in a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/ACT. Utilizing the coupon code PRONEWS24 can provide an extra 10% off a yearly or biyearly Pro and Pro+ subscription, offering a more comprehensive investment toolset. Currently, there are 5 more InvestingPro Tips listed, which could help investors make more informed decisions regarding Enact Holdings.
With the next earnings date on May 1, 2024, investors will be keen to see if the company's performance aligns with these metrics and whether the recent shareholder activity will have any long-term impact on the stock's valuation.
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