Essent Group(ESNT) Shares Soar 2.78% on Strong Q1 Earnings

Essent Group(ESNT) shares rose to their highest level since October 2024 today, with an intraday gain of 2.78%.

The strategy of buying ESNT shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 9.83% annualized return and a 42.61% total return as of the latest data point, indicating it was a decent approach, though the returns were not exceptionally high.

Essent Group's stock price movements in 2025 have been notably influenced by its first-quarter financial performance. The company reported a net income of $175.4 million, or $1.69 per share, which surpassed the Zacks Consensus Estimate of $1.66 per share. Despite a year-over-year decline in profit, the earnings exceeded market expectations, driven by favorable credit performance and elevated portfolio persistency. This positive financial outlook contributed to the rise in share price by 1.33%.

Essent Group also outlined a $405 million dividend capacity, supported by sustained credit quality and a 3% investment yield. This announcement further bolstered investor confidence, as it indicated the company's strong financial health and commitment to returning value to shareholders. The dividend capacity, coupled with the positive earnings report, provided a solid foundation for the stock's upward trajectory.