Essent Stock Buy Hold or Sell Recommendation

ESNT
 Stock
  

USD 40.09  0.50  1.26%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Essent Group is 'Hold'. Macroaxis provides Essent buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Essent positions. The advice algorithm takes into account all of Essent's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Essent's buy-and-hold perspective. Continue to Essent Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Essent and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Essent Group.

Execute Essent Buy or Sell Advice

The Essent recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Essent Group. Macroaxis does not own or have any residual interests in Essent Group or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Essent's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell EssentBuy Essent
Hold

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Reporting Quality (M-Score)

Details
For the selected time horizon Essent Group has a Risk Adjusted Performance of 0.0138, Jensen Alpha of (0.11), Total Risk Alpha of (0.13), Sortino Ratio of (0.049008) and Treynor Ratio of 0.0044
Essent advice module can be used to check and cross-verify current investment recommendation provided by analysts reviewing the company's potential to grow using all of fundamental, technical, data market data available at the time. To make sure Essent is not overpriced, please confirm all Essent Group fundamentals, including its gross profit, price to earnings to growth, net asset, as well as the relationship between the debt to equity and retained earnings . Given that Essent Group has a price to earning of 10.05 X, we urge you to verify Essent Group market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Essent Trading Alerts and Improvement Suggestions

Over 96.0% of the company shares are held by institutions such as insurance companies

Essent Returns Distribution Density

The distribution of Essent's historical returns is an attempt to chart the uncertainty of Essent's future price movements. The chart of the probability distribution of Essent stock daily returns describes the distribution of returns around its average expected value. We use Essent Group price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Essent returns is essential to provide solid investment advice for Essent.
Mean Return0.0153Value At Risk-2.63
Potential Upside3.40Standard Deviation2.10
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Essent historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Essent Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Essent is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Essent Group backward and forwards among themselves. Essent's institutional investor refers to the entity that pools money to purchase Essent's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Zurcher Kantonalbank Zurich CantonalbankCommon Shares13.3 K463 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares13.3 K517 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares15.6 K642 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares14.2 K645 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares11.7 K513 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares11.7 K524 K
Zurcher Kantonalbank Zurich CantonalbankCommon Shares12.4 K590 K
Note, although Essent's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Essent Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Essent or Thrifts & Mortgage Finance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Essent's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Essent stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.11
β
Beta against NYSE Composite1.22
σ
Overall volatility
2.12
Ir
Information ratio -0.04

Essent Volatility Alert

Essent Group has relatively low volatility with skewness of 0.71 and kurtosis of 0.49. However, we advise all investors to independently investigate Essent Group to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Essent's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Essent's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Essent Fundamentals Vs Peers

Comparing Essent's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Essent's direct or indirect competition across all of the common fundamentals between Essent and the related equities. This way, we can detect undervalued stocks with similar characteristics as Essent or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Essent's fundamental indicators could also be used in its relative valuation, which is a method of valuing Essent by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Essent to competition
FundamentalsEssentPeer Average
Return On Equity0.20 %(0.31) %
Return On Asset0.12 %(0.14) %
Profit Margin0.84 %(1.27) %
Operating Margin1.02 %(5.51) %
Current Valuation4.6 B16.62 B
Shares Outstanding107.71 M571.82 M
Shares Owned by Insiders2.95 %10.09 %
Shares Owned by Institutions95.90 %39.21 %
Number of Shares Shorted1.38 M4.71 M
Price to Earning10.05 X28.72 X
Price to Book0.99 X9.51 X
Price to Sales4.20 X11.42 X
Revenue1.03 B9.43 B
Gross Profit950.09 M27.38 B
EBITDA833.98 M3.9 B
Net Income681.78 M570.98 M
Cash and Equivalents433.48 M2.7 B
Cash per Share4.03 X5.01 X
Total Debt420.34 M5.32 B
Debt to Equity0.1 %48.70 %
Current Ratio1.88 X2.16 X
Book Value Per Share39.87 X1.93 K
Cash Flow from Operations709.26 M971.22 M
Short Ratio3.00 X4.00 X
Earnings Per Share7.99 X3.12 X
Price to Earnings To Growth0.84 X4.89 X
Target Price48.8
Number of Employees35018.84 K
Beta1.19-0.15
Market Capitalization4.32 B19.03 B
Total Asset5.72 B29.47 B
Retained Earnings1.95 B9.33 B
Working Capital129.5 M1.48 B
   Essent exotic insider transaction detected [view details]

About Essent Buy or Sell Advice

When is the right time to buy or sell Essent Group? Buying financial instruments such as Essent Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Essent in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Currency Thematic Idea Now

Currency
Currency Theme
Funds or Etfs investing in a single currency or combination of currencies from different countries in order to replicate respective foreign exchange markets. The Currency theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Currency Theme or any other thematic opportunities.
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Continue to Essent Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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Is Essent's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Essent. If investors know Essent will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Essent listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Essent Group is measured differently than its book value, which is the value of Essent that is recorded on the company's balance sheet. Investors also form their own opinion of Essent's value that differs from its market value or its book value, called intrinsic value, which is Essent's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Essent's market value can be influenced by many factors that don't directly affect Essent's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Essent's value and its price as these two are different measures arrived at by different means. Investors typically determine Essent value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Essent's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.