Royal Bank of Canada Cuts Essent Group (NYSE:ESNT) Price Target to $61.00

Essent Group (NYSE:ESNT) had its target price trimmed by Royal Bank of Canada from $64.00 to $61.00 in a research report sent to investors on Monday, Benzinga reports. The brokerage currently has an outperform rating on the financial services provider’s stock.

A number of other analysts have also weighed in on the stock. StockNews.com lowered shares of Essent Group from a buy rating to a hold rating in a research note on Monday, March 4th. Keefe, Bruyette & Woods raised their target price on shares of Essent Group from $62.00 to $64.00 and gave the stock a market perform rating in a report on Thursday, April 4th. Finally, JPMorgan Chase & Co. cut shares of Essent Group from an overweight rating to a neutral rating and raised their target price for the stock from $58.00 to $61.00 in a report on Wednesday, April 3rd. Five investment analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of Hold and a consensus price target of $58.75.

Essent Group Stock Performance

Shares of ESNT opened at $56.01 on Monday. The stock has a 50-day moving average of $55.34 and a two-hundred day moving average of $52.67. The stock has a market cap of $5.99 billion, a P/E ratio of 8.47, a P/E/G ratio of 0.83 and a beta of 1.05. Essent Group has a one year low of $42.52 and a one year high of $59.90.

Essent Group (NYSE:ESNT) last released its earnings results on Friday, May 3rd. The financial services provider reported $1.70 EPS for the quarter, topping analysts’ consensus estimates of $1.56 by $0.14. Essent Group had a return on equity of 14.24% and a net margin of 61.40%. The firm had revenue of $298.40 million during the quarter, compared to the consensus estimate of $298.69 million. During the same quarter in the previous year, the company posted $1.59 earnings per share. The company’s revenue was up 16.4% compared to the same quarter last year. Analysts predict that Essent Group will post 6.56 EPS for the current fiscal year.

Essent Group Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 10th. Shareholders of record on Friday, May 31st will be issued a $0.28 dividend. The ex-dividend date of this dividend is Friday, May 31st. This represents a $1.12 dividend on an annualized basis and a yield of 2.00%. Essent Group’s payout ratio is 16.94%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Parkside Financial Bank & Trust increased its holdings in Essent Group by 18.5% in the fourth quarter. Parkside Financial Bank & Trust now owns 1,543 shares of the financial services provider’s stock valued at $81,000 after buying an additional 241 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. grew its position in shares of Essent Group by 0.6% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 48,198 shares of the financial services provider’s stock valued at $2,542,000 after purchasing an additional 267 shares during the period. Janney Montgomery Scott LLC grew its position in shares of Essent Group by 2.9% in the first quarter. Janney Montgomery Scott LLC now owns 10,297 shares of the financial services provider’s stock valued at $613,000 after purchasing an additional 287 shares during the period. Contravisory Investment Management Inc. acquired a new stake in shares of Essent Group in the fourth quarter valued at about $26,000. Finally, State of Michigan Retirement System grew its position in shares of Essent Group by 2.0% in the first quarter. State of Michigan Retirement System now owns 26,133 shares of the financial services provider’s stock valued at $1,555,000 after purchasing an additional 500 shares during the period. Hedge funds and other institutional investors own 93.00% of the company’s stock.

About Essent Group

Essent Group Ltd., through its subsidiaries, provides private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. Its mortgage insurance products include primary, pool, and master policy. The company also provides information technology maintenance and development services; customer support-related services; underwriting consulting; and contract underwriting services, as well as risk management products and title insurance and settlement services.