In a recent transaction, Genworth Holdings, Inc., a significant shareholder in Enact Holdings, Inc. (NASDAQ:ACT), has sold a substantial number of shares in the insurer. The transaction involved the sale of 336,266 common shares at a price of $30.068 per share, amounting to a total of approximately $10.11 million.
This sale was carried out in accordance with a Share Repurchase Agreement previously established between Enact Holdings and Genworth Holdings. The price per share was determined based on a weighted average of the price paid by Enact Holdings for purchases from third parties, as outlined in the terms of the Agreement.
Following the transaction, Genworth Holdings continues to hold a significant stake in Enact Holdings, owning approximately 81.6% of the company's outstanding common stock. The sale took place on April 30, 2024, and was reported by Lisa J. Baldyga, Vice President and Treasurer on behalf of Genworth Holdings, on May 1, 2024.
Investors and market watchers often look to insider transactions such as these for signals about a company's performance and the confidence that major stakeholders have in the firm's prospects. The sale by Genworth Holdings represents a notable adjustment in its investment in Enact Holdings, although it remains a majority owner with a vested interest in the insurer's success.
InvestingPro Insights
Following the recent insider transaction at Enact Holdings, Inc. (NASDAQ:ACT), where Genworth Holdings sold a portion of its stake, investors may be interested in how the company's financials align with these actions. According to InvestingPro, Enact Holdings is currently trading at an attractive earnings multiple, with a P/E ratio of 7.25, which is slightly lower than the adjusted P/E ratio for the last twelve months as of Q4 2023, at 7.12.
Additionally, Enact Holdings has shown a solid financial performance over the past year. The company has been profitable over the last twelve months, with a gross profit margin of 78.29%. This profitability is anticipated to continue, as analysts predict the company will remain profitable this year. Furthermore, Enact Holdings' revenue has grown by 5.36% over the last twelve months as of Q4 2023, indicating a steady upward trend in its earnings capacity.
Investors considering Enact Holdings may also take note of the company's dividend yield, which stands at an impressive 5.08%, and the substantial dividend growth of 169.64% over the last twelve months as of Q4 2023. These figures could be particularly appealing for those seeking income-generating investments.
For those looking for more in-depth analysis and additional insights, InvestingPro offers more tips on Enact Holdings. In fact, there are two noteworthy InvestingPro Tips: analysts have revised their earnings upwards for the upcoming period, and the stock is trading at a low earnings multiple. There are many more tips available on InvestingPro, and interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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