Stock Analysis

The President of Enact Holdings, Inc. (NASDAQ:ACT), Rohit Gupta, Just Bought 8.7% More Shares

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Investors who take an interest in Enact Holdings, Inc. (NASDAQ:ACT) should definitely note that the President, Rohit Gupta, recently paid US$22.61 per share to buy US$118k worth of the stock. Although the purchase only increased their holding by 8.7%, it is still a solid purchase in our view.

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Enact Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Rohit Gupta was the biggest purchase of Enact Holdings shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$21.96). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Enact Holdings insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NasdaqGS:ACT Insider Trading Volume March 16th 2023

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Based on our data, Enact Holdings insiders have about 0.1% of the stock, worth approximately US$4.8m. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Enact Holdings Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Enact Holdings stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for Enact Holdings you should be aware of, and 1 of these is a bit unpleasant.

But note: Enact Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

What are the risks and opportunities for Enact Holdings?

Enact Holdings, Inc. operates as a private mortgage insurance company in the United States.

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  • Trading at 56.9% below our estimate of its fair value

  • Earnings grew by 28.8% over the past year


  • Earnings are forecast to decline by an average of 14.2% per year for the next 3 years

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