Essent Group (NYSE:ESNT) Releases Earnings Results, Misses Expectations By $0.14 EPS

Essent Group (NYSE:ESNT) announced its quarterly earnings results on Friday. The financial services provider reported $1.60 EPS for the quarter, missing the consensus estimate of $1.74 by ($0.14), Briefing.com reports. Essent Group had a return on equity of 12.40% and a net margin of 55.63%.The firm had revenue of $312.40 million for the quarter, compared to analysts’ expectations of $312.62 million. During the same period last year, the firm earned $1.58 EPS. Essent Group’s revenue was down .8% compared to the same quarter last year.

Here are the key takeaways from Essent Group’s conference call:

• Essent reported Q4 net income of $155 million ($1.60/share) and full‑year net income of $690 million ($6.90/share), with a 12% ROE and book value per share up 13% to $60.31.
• The company returned nearly $700 million to shareholders in 2025 (dividends and repurchases), retired ~10% of shares, and the board approved a 13% dividend increase to $0.35 starting Q1 2026, supported by strong liquidity (consolidated cash & investments $6.6B; GAAP equity $5.8B).
• Essent Re is expanding into P&C and Lloyd’s‑backed business, earning nearly $80 million in third‑party net income in 2025, ending the year with $2.3B in risk, and expecting $100–150M of written premium that could provide supplemental earnings.
• Management expects only modest near‑term growth in earned premium and insurance‑in‑force amid higher mortgage rates, while Q4 mortgage loss provisions rose to $55.2M (FY ≈$145M) and the portfolio default rate ticked up to 2.5%, which could pressure short‑term results.

Essent Group Trading Down 6.3%

NYSE ESNT traded down $4.12 during mid-day trading on Friday, reaching $61.52. 1,506,439 shares of the stock were exchanged, compared to its average volume of 628,783. The business’s fifty day simple moving average is $63.75 and its 200 day simple moving average is $62.32. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.68 and a current ratio of 1.68. The stock has a market capitalization of $5.95 billion, a PE ratio of 8.96, a PEG ratio of 4.16 and a beta of 0.90. Essent Group has a 1-year low of $51.61 and a 1-year high of $67.09.

Essent Group Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 23rd. Investors of record on Friday, March 13th will be given a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a yield of 2.3%. This is an increase from Essent Group’s previous quarterly dividend of $0.31. The ex-dividend date is Friday, March 13th. Essent Group’s dividend payout ratio (DPR) is 18.05%.

More Essent Group News

Here are the key news stories impacting Essent Group this week:

• Positive Sentiment: Essent raised its quarterly dividend alongside the report, which supports yield-seeking investors and signals confidence in cash flow. Dividend and Results Press Release
• Neutral Sentiment: Revenue was essentially in line with consensus at ~$312.4M (est. ~$312.6M), limiting the positive surprise from sales even as comps were slightly negative. Sales In Line Article
• Neutral Sentiment: Full earnings call and transcripts are posted (management commentary and slide deck available) — investors should review the call for commentary on margin drivers, loss trends and capital deployment plans. Yahoo Earnings Transcript Seeking Alpha Transcript
• Negative Sentiment: EPS missed consensus: reported $1.60 vs. street $1.74, which is the primary reason for the negative price reaction as it undercut near-term earnings expectations. Earnings Miss Article
• Negative Sentiment: Revenue declined ~0.8% YoY and the slight topline softness combined with the EPS miss is pressuring sentiment; analysts and investors will watch forward guidance and mortgage/insurance trends for signs of stabilization. Earnings Snapshot

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on ESNT. The Goldman Sachs Group restated a “neutral” rating and issued a $70.00 price target on shares of Essent Group in a research report on Tuesday, January 6th. Weiss Ratings reissued a “buy (b+)” rating on shares of Essent Group in a research note on Monday, December 29th. Roth Mkm lifted their target price on shares of Essent Group from $70.00 to $75.00 and gave the stock a “buy” rating in a research report on Friday, January 2nd. Barclays reduced their price target on shares of Essent Group from $66.00 to $65.00 and set an “equal weight” rating on the stock in a report on Tuesday, January 6th. Finally, Keefe, Bruyette & Woods raised their price objective on shares of Essent Group from $71.00 to $73.00 and gave the stock a “market perform” rating in a research note on Thursday, December 18th. Five investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $69.29.

Insider Buying and Selling at Essent Group

In related news, SVP Mary Lourdes Gibbons sold 4,352 shares of the company’s stock in a transaction on Thursday, December 18th. The stock was sold at an average price of $67.00, for a total value of $291,584.00. Following the completion of the transaction, the senior vice president directly owned 237,896 shares in the company, valued at approximately $15,939,032. This represents a 1.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 2.90% of the stock is currently owned by corporate insiders.

Institutional Trading of Essent Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Natixis Advisors LLC boosted its position in shares of Essent Group by 1.2% in the fourth quarter. Natixis Advisors LLC now owns 16,584 shares of the financial services provider’s stock worth $1,078,000 after acquiring an additional 204 shares during the last quarter. Tidal Investments LLC raised its stake in Essent Group by 1.2% during the second quarter. Tidal Investments LLC now owns 21,801 shares of the financial services provider’s stock worth $1,324,000 after purchasing an additional 261 shares during the period. Quadrant Capital Group LLC boosted its holdings in shares of Essent Group by 44.0% in the 4th quarter. Quadrant Capital Group LLC now owns 1,076 shares of the financial services provider’s stock valued at $70,000 after purchasing an additional 329 shares during the last quarter. Caitong International Asset Management Co. Ltd acquired a new position in shares of Essent Group in the 3rd quarter valued at $25,000. Finally, Measured Wealth Private Client Group LLC purchased a new stake in shares of Essent Group during the 3rd quarter valued at $27,000. Hedge funds and other institutional investors own 93.00% of the company’s stock.

About Essent Group

Essent Group Ltd. (NYSE: ESNT) is a publicly traded insurance holding company specializing in private mortgage insurance and mortgage reinsurance solutions. Through its primary subsidiary, Essent Guaranty, the company provides credit protection to mortgage lenders, helping mitigate the risk of borrower default on residential mortgage loans. Essent’s insurance policies enable lenders to offer low-down-payment programs, supporting homebuyers in achieving homeownership with reduced upfront equity requirements.

Beyond traditional mortgage insurance, Essent offers a suite of risk management and analytics services designed to help financial institutions monitor and manage mortgage portfolios.