Essent Group Ltd.NYSE
Mon, Nov. 28, 12:04 PM
- Hitting fresh 52-week highs on double the normal volume today:
- Vale (VALE +5.2%)
- Cliff's Natural Resource (CLF -1.8%)
- Essent Group (ESNT +1.8%)
- Finisar (FNSR +4.7%)
- China Lodging (HTHT +5.8%)
- 51job (JOBS +1.4%)
- PrivateBancorp (PVTB +0.1%)
- Alleghany Corp. (Y -0.1%)
- The only fresh 52-week lows today are in European telecom:
- Vodafone (VOD -2.3%)
- Orange (ORAN -1.4%)
Fri, Nov. 4, 6:34 AM
Thu, Nov. 3, 5:30 PM
Wed, Sep. 28, 7:08 AM
Tue, Aug. 16, 8:20 AM
- The $3.4B Arch Capital Group (NASDAQ:ACGL) agreed to pay for AIG's United Guaranty represented 9.5x 2015 EPS, says BTIG's Mark Palmer. Applying that multiple to his FY18 EPS estimates for Radian (NYSE:RDN), MGIC Investment (NYSE:MTG), Essent Group (NYSE:ESNT), and NMI Holdings (NASDAQ:NMIH) implies upsides of 37%, 38%, 5%, and 62%, respectively, versus their closes yesterday.
- Essent and NMI Holdings could merit higher multiples than their slower-growing peers, he adds.
- For more diversified Genworth (NYSE:GNW), it's hoping to break off its mortgage insurance units from its life and long-term care operations, and the sale of United Guaranty likely helped this cause.
- Don't forget, Arch Capital likely got a good deal on its purchase as AIG was a motivated seller given the sluggish IPO market and AIG's capital return promises.
- Previously: WSJ: AIG nears deal to sell mortgage insurance unit for $3.4B (Aug. 15)
Thu, Aug. 4, 6:36 AM
Wed, Aug. 3, 5:30 PM
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Sun, Jul. 24, 12:18 PM
- MGIC Investment (NYSE:MTG) just closed out a big week after its Q2 earnings impressed, and more gains are in store for it, along with peers like Radian Group (NYSE:RDN), NMI Holdings (NASDAQ:NMIH), and Essent Group (NYSE:ESNT), writes Leslie Norton.
- Stringent post-crisis underwriting standards mean new business is nearly pristine: The default rate on private mortgage insurance written since 2010 is only about 50 basis points vs. 20% in 2007.
- So what's holding the stocks back? Private mortgage insurers are in competition with an entity that doesn't care about profits, and the FHA last year cut the premiums on mortgages it insures. Upstart NMI Holdings slashed prices to gain market share, and Fannie Mae and Freddie Mac issued new capital requirements for insurers.
- But pricing has stabilized, if you ask MGIC CEO Patrick Sinks, as well as bullish Oppenheimer fund manager Michael Levine.
- Industry consolidation could be at hand as well. In addition to the four above, AIG's United Guaranty is in the business with about 20% of the market, Genworth Financial (NYSE:GNW) has 16%, and Arch Capital's (NASDAQ:ACGL) MI operation has 6% (for comparison, MGIC and Radian each have about 18% of the market). Old hands will remember MGIC and Radian considered a merger prior to the financial crisis.
- Barclays' Mark DeVries and Zelman Associates' Ivy Zelman figure MGIC has more than 50% upside from the current price, and Zelamn thinks Radian could be a double. Essent, on the other hand, at 9.4x earnings and 1.4x book, looks fully valued. NMI, says Zelman, could be worth $8 vs. the current $6.
Tue, Jul. 19, 9:53 AM
- Though a real bull market for MGIC Investment (MTG +8.3%) awaits follow-through on the government's promise to cede more market share to private mortgage insurers, says BTIG's Mark Palmer, Q2's strong report should remind investors of the company's potential, particularly in light of the cheap valuation.
- The results confirmed media reports from last week suggesting strong volumes in the PMI industry in Q2, he says.
- Net written premiums of $250M exceeded his estimate of $241.3M, and revenues of $263.5M topped Palmer's already-bullish forecast of $260.1M.
- Book value rose 7.1% to $7.37 per share - even with today's big gain, the stock (at $6.91 currently) still trades at a sizable discount.
- Palmer reiterates his Buy rating and $12 price target.
- Up in concert with MTIG are Radian (RDN +2.7%) and Essent Group (ESNT +1.1%).
- Previously: MGIC Investment on the move after topping estimates (July 19)
Thu, May 19, 11:29 AM
- Talk of consolidation in the private mortgage insurance industry is nothing new, says BTIG's Mark Palmer, but the potential for action may be higher after the announcement of the pending retirement of Radian's (RDN -1.7%) CEO S.A. Ibrahim.
- Since the company has no successor in place, it makes sense to think the board might be a little more likely to entertain offers than otherwise, says Palmer.
- Who might be the best fit? Essent Group (ESNT -1.9%), he says. First, Essent trades at 1.58x book value vs. Radian at 0.96x, thus giving Essent highly valued currency to use, even as Radian's market cap of $2.56B compares to Essent's at $1.83B.
- There is overlap between the two's client bases, so the combined company would have market share just in the mid-20% area vs. Radian's current 19.5% and Essent's 12.6%. Still, with one less competitor, pricing issues in the industry might fade a bit.
- Palmer reminds Radian and MGIC investment (MTG -1%) had agreed to merge just before the housing market blew up.
Thu, May 5, 6:31 AM
- Essent Group (NYSE:ESNT): Q1 EPS of $0.52 beats by $0.02.
- Revenue of $102.46M (+28.1% Y/Y) beats by $3.02M.
Wed, May 4, 5:30 PM
- AAC, AAON, AAWW, ABC, ACIW, ACRE, ACTA, AGIO, AMCX, AMRC, AMRN, ANIP, ANSS, APA, APO, AVP, AXLL, BABA, BCRX, BDX, BR, CBB, CCC, CCOI, CDK, CHD, CHK, CLDT, CNAT, CNNX, CNSL, COT, CVC, CWEI, DDD, DIN, DISCA, DNR, EAC, ENOC, EPAM, ESNT, EVA, FIG, FLDM, G, GCAP, GWPH, HII, HL, HWCC, ICON, IT, ITG, ITT, JEC, JMBA, K, LAMR, LFUS, LINC, LIOX, LMOS, LQDT, LXP, MBLY, MDC, MFC, MGA, MGLN, MGM, MITL, MLM, MMS, MRK, MWW, NICE, NILE, NRG, NTCT, NYLD, OGE, ONE, OXY, PGNX, PGTI, PRFT, PRIM, PWR, RDEN, RDUS, REGN, RFP, RGEN, RLGY, RSTI, RWLK, SBH, SEAS, SFM, SHLX, SNH, SNI, SNR, SNSS, SPH, SQBG, STOR, TDC, TDY, TE, THS, TIME, TLP, TWI, UNT, USAC, USAK, USCR, VER, VG, VLP, WIN, WPC, WRLD
Fri, Feb. 12, 6:33 AM
- Essent Group (NYSE:ESNT): Q4 EPS of $0.48 beats by $0.01.
- Revenue of $97.47M (+34.0% Y/Y) beats by $1.17M.
Thu, Feb. 11, 5:30 PM
Nov. 5, 2015, 6:46 AM
- Essent Group (NYSE:ESNT): Q3 EPS of $0.44 in-line.
- Revenue of $91.7M (+41.9% Y/Y) beats by $1.56M.
Oct. 27, 2015, 12:10 PM
- The vastly improved credit performance at Radian (RDN -10.6%) may be old news at this point, and investors might be looking for more growth.
- Speaking on the earnings call, CEO Sanford Ibrahim says he expects lower refinance business next year, but it should be offset by greater penetration in the new purchase area (MI is far more likely on purchases than refinances). Overall, he says, the market for mortgage insurance next year should be similar to 2015.
- Webcast and presentation slides
- Turning to the "high level" of competition, Ibrahim says his company "has opted not to compete" with certain discounts currently being offered. The decision has modestly hurt market share, he says, though quickly pointing out the company has been able to offset at least some of this.
- MGIC Investment (MTG -6.4%), Genworth (GNW -4.5%), Essent Group (ESNT -2.9%), NMI Holdings (NMIH -2.2%)
- Previously: More on Radian's Q3 miss (Oct. 27)
- Previously: Radian Group misses by $0.05, beats on revenue (Oct. 27)