Enact Holdings (ACT): Examining Valuation Following Recent Strong Share Price Gains

Enact Holdings (ACT) has seen steady upward momentum in recent weeks, gaining nearly 9% over the past month. The company’s performance reflects investor interest in its private mortgage insurance business, with housing markets remaining in focus.

See our latest analysis for Enact Holdings.

Building on its recent momentum, Enact Holdings has delivered a strong 1-month share price return of nearly 9%, contributing to an impressive 20% gain so far this year. The company’s steady climb is supported by confidence in the mortgage insurance sector, and its 3-year total shareholder return of over 79% indicates that investors have seen substantial rewards for their patience as sentiment has steadily improved.

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The key question facing investors now is whether Enact Holdings’ recent run-up still leaves room for upside, or if expectations for future growth are already fully reflected in the stock price. Could this be a buying opportunity, or is the market a step ahead?

Most Popular Narrative: 4.1% Undervalued

At $38.93, Enact Holdings sits just below the most popular narrative’s fair value of $40.60. With the share price only slightly trailing the consensus view, investors are watching whether near-term drivers could prompt a move toward or beyond that target.

Strategic capital flexibility, demonstrated by a robust PMIERs sufficiency ratio and a substantial increase in planned capital returns ($400 million for 2025), positions Enact to sustain attractive dividends and share repurchases, which will directly support EPS and ROE in future periods.

Read the complete narrative.

Behind this valuation lies a story of aggressive buybacks and rising capital returns. Want to know which financial levers are being pulled to drive earnings and set future profit multiples? Find out the narrative’s key growth and margin playbook inside.

Result: Fair Value of $40.60 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistently high mortgage rates or weaker home price trends could quickly challenge the bullish outlook and restrict future growth for Enact Holdings.

Find out about the key risks to this Enact Holdings narrative.

Build Your Own Enact Holdings Narrative

If you believe there is more to the story or want to verify the data firsthand, you can generate your own view in just a few minutes with Do it your way.

A great starting point for your Enact Holdings research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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