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ACT · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Enact Holdings, Inc. Common Stock (ACT) stock moving?
Enact's Q3 2026 results were mixed: adjusted EPS of $1.19 narrowly beat the $1.18 estimate and GAAP net income reached $159 million, but revenue of $312.85M missed the roughly $317.92M estimate, and the company declared a $0.24 quarterly dividend. The stock spiked to an intraday high of $50.50 on Nov 5, the day of the earnings call, but closed at $47.77 and then slid to $46.20 by Nov 10, with the 1.16M-share volume day on Oct 28 and the higher-volume sessions around the report marking the most active trading in the period. The Nov 2 downgrade by B of A Securities to Underperform, with a $42 price target, points to downside from the current price and adds to the pressure from the revenue miss. A director's planned resignation effective Dec 31 was described by the company as unrelated to any disagreement and is a minor factor. Overall, the news flow leans negative in the short term, while the dividend and earnings beat support the longer view.
News behind the analysis
- Enact Holdings, Inc. Reports Third Quarter 2026 Financial ResultsEnact reported GAAP net income of $159 million for Q3 2026 and declared a quarterly dividend of $0.24 per share.
- Enact Holdings Q3 Adj. EPS $1.19 Beats $1.18 Estimate, Sales $312.854M Miss $317.921M EstimateAdjusted EPS slightly beat consensus, while revenue came in about 1.6% below estimates.
- Enact Holdings Q3 2026 Earnings Call TranscriptManagement discussed the third-quarter 2026 results on the earnings call held Thursday, Nov 5.
- B of A Securities Downgrades Enact Holdings to UnderperformB of A Securities cut its rating on Enact from buy to underperform and reduced its price target.
- Enact Holdings Director Thomas J. McInerney to ResignDirector Thomas J. McInerney will step down from the board at the end of 2026; the company said the decision was not due to any dispute.
- B of A Securities Downgrades Enact Holdings to Underperform, Lowers Price Target to $42The downgrade set a $42 price target, roughly 9% below the Nov 10 close of $46.20.
About Enact Holdings, Inc. Common Stock
Enact Holdings is a major US private mortgage insurer, based in Raleigh, North Carolina, that has operated through its main subsidiary since about 1980. It protects lenders against losses when homebuyers who put down less than 20% stop paying their mortgages, and it works with more than 1,700 lenders.
How it makes money
Most revenue (roughly 80%) comes from mortgage insurance premiums, paid either by borrowers or by lenders, on a book of insured loans worth roughly $270+ billion. Most of the rest comes from investment income on its portfolio of reserves, plus a small amount from contract underwriting services. Quarterly revenue is roughly $310 million. The company passes part of its risk to reinsurers.
What usually moves ACT
- Mortgage origination and refinance volumes
- Delinquency rates and the health of housing credit
- Home prices, unemployment and mortgage rates
- Federal housing policy, including Fannie Mae/Freddie Mac rules and proposals to cut mortgage insurance premiums
- Capital returns such as dividends and buybacks