Enact Holdings, Inc. (ACT) - Stock Analysis
Last updated: Apr 5, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
ACT combines two strong growth stories: Aduro Clean Technologies' $20M capital raise and pilot commercialization progress in clean recycling tech, and Enact Holdings' solid Q3 insurance growth, raised capital return guidance, and stable financials. Positive momentum over the last 21 trading days (~8.5% gain) with moderate volatility supports near-term appreciation.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Exceptional margins ⢠Strong FCF ⢠Low asset turnover ACT is a high-margin, cash-generative, low-leverage company with strong FCF and modest valuation but low asset turnover and large invested balances that require scrutiny.
Price Behavior
Key Price Behavior Insights: ⢠Above last month SMA ⢠Weak momentum ⢠Buyers defend $40.2 Support Level: $40.17â$40.36 Resistance Level: $41.44â$41.72 (near-term); $42.40â$43.90 (strong) As of 2026-04-02, ACT is trading modestly above its last month SMA (~$40.75) with weak momentum (RSI ~40.5), defending support around $40.17â$40.36 but capped by near-term resistance $41.44â$41.72 and stronger $42.4â$43.9, implying limited upside without a decisive breakout above ~$41.7â$42.4.
Sentiment & News
Key News Insights: ⢠Sustainability disclosure ⢠Investor outreach ⢠Community awards March headlines tied to the "ACT" label highlight sustainability disclosure by Enact, investor outreach and circularâeconomy positioning by Aduro, and community/technical awards that together drive visibility rather than a single coordinated event.
AI Summary
Reframe ACT as a highâmargin, capitalâlight insurer whose primary value now derives from durable free cash flow and aggressive capital returns (buybacks/dividends) supported by strong PMIERs sufficiency (~162%), but investors should actively monitor reserve development, lossâratio trends and investmentâportfolio duration/credit mix (and temper buybacks if underwriting or realized investment losses emerge) to avoid capital erosion.
Description
Enact Holdings, Inc. is a U.S. private mortgage insurer that writes and assumes residential mortgage guaranty policies, primarily for individually underwritten, prime-quality loans, and provides contract underwriting services to mortgage lenders. Founded in 1981 and headquartered in Raleigh, North Carolina, the company changed its name from Genworth Mortgage Holdings in May 2021 and operates as a subsidiary of Genworth Holdings, Inc.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Dec 19 | Dec 26 | ACT | Enact Holdings, Inc. | ACT combines two strong growth stories: Aduro Clean Technologies' $20M capital raise and pilot commercialization progress in clean recycling tech, and Enact Holdings' solid Q3 insurance growth, raised capital return guidance, and stable financials. Positive momentum over the last 21 trading days (~8.5% gain) with moderate volatility supports near-term appreciation. | Closed | -0.8% |