Should I Buy ACT? ACT 2026 Analysis

Should You Buy Enact Holdings Inc (ACT) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

43.170

1 Day change

-2.31%

52 Week Range

44.800

Analysis Updated At

2026/02/04

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BUY now: technicals are bullish (SMA_5 > SMA_20 > SMA_200 + expanding positive MACD) and price is pushing above key resistance (~40.97), supporting continuation.
Event-driven tailwind: fresh $500M buyback + $0.21 dividend and an EPS beat create near-term support for the stock.
Sentiment is constructive: options positioning is call-skewed (very low put/call OI), while Wall Street remains mostly Neutral—leaving room for upgrades if execution continues.
Not a “perfect dip” entry: RSI (~63) is not oversold, but for an impatient buyer the current breakout area is still a reasonable entry given the catalysts and trend.

Technical Analysis

Trend: Bullish structure with moving averages stacked positively (SMA_5 > SMA_20 > SMA_200), indicating an established uptrend.
Momentum: MACD histogram at +0.122 and expanding suggests strengthening upside momentum.
RSI: RSI_6 ~62.995 (upper-neutral) indicates strength without being extremely overbought.
Levels: Pivot 39.495; Resistance R1 40.407 and R2 40.969. Current price (~40.99) is slightly above R2, consistent with a breakout attempt; support to watch is ~40.41 then ~39.50.
Pattern-based outlook (provided): modest upside bias over 1W to 1M (approx. +2.97% week, +4.48% month probabilities/expectations).

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning: Open interest is call-heavy (call OI 203 vs put OI 20; OI put/call 0.1), suggesting bullish/hedged-to-the-upside sentiment.
Activity: Reported options volume is 0 today (thin/quiet tape), so sentiment is more from positioning than fresh flow.
Volatility: 30D IV ~40.71 vs historical vol ~20.27 (IV elevated); IV percentile ~64.4 suggests options are relatively expensive.
Takeaway: positioning is bullish, but lack of volume means confirmation from fresh buying is limited.

Technical Summary

Sell

Buy

Positive Catalysts

- $500M share repurchase authorization (material support to EPS/float and typically supportive to near-term price action).
- Quarterly dividend declared at $0.21/share.
- Q4 non-GAAP EPS of $1.23 beat expectations (signals operating strength).
- Financial growth trend in latest quarter (2025/Q4): revenue +3.62% YoY, net income +8.86% YoY, EPS +16.19% YoY.

Neutral/Negative Catalysts

- Q4 revenue of $312.71M missed expectations (top-line softness vs forecasts).
- Analysts broadly sit at Neutral/Market Perform, which can cap near-term multiple expansion unless more upside surprises arrive.
- No notable hedge fund/insider accumulation signals recently (both described as Neutral).

Financial Performance

Latest quarter: 2025/Q4.
Revenue: $312.706M, +3.62% YoY (steady growth).
Net income: $177.161M, +8.86% YoY (profit growth outpacing revenue).
EPS: $1.22, +16.19% YoY (strong per-share growth, consistent with shareholder-friendly capital actions).
Overall: improving profitability and per-share earnings momentum into the new buyback program.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent rating posture: consistently Neutral/Market Perform across major firms (no clear bullish initiation).
Price target trend: generally higher/constructive recently—Goldman raised PT to $45 (from $41) on 2026-01-06; Keefe Bruyette raised to $43 (from $42) on 2025-12-18; JPMorgan cut to $39 (from $40) on 2025-11-07 after Q3.
Wall Street pros: expectation of double-digit book value growth for mortgage insurers; improving returns/operating leverage cited.
Wall Street cons: credit risk/macro sensitivity remains the key wildcard; revenue misses can limit enthusiasm.
Politicians/congress/influential trading: no recent congress trading data available; no notable political trading signal provided.

4 Analyst Rating

Wall Street analysts forecast ACT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ACT is 42.25 USD with a low forecast of 40 USD and a high forecast of 45 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

1 Buy

3 Hold

0 Sell

Hold

Current: 44.190

Low

Averages

42.25

High

Current: 44.190

Low

Averages

42.25

High

JPMorgan

Neutral

maintain

$40 -> $44

AI Analysis

2026-02-05

New

Reason

JPMorgan

Price Target

$40 -> $44

AI Analysis

2026-02-05

New

maintain

Neutral

Reason

JPMorgan raised the firm's price target on Enact Holdings to $44 from $40 and keeps a Neutral rating on the shares. The firm says the company delivered on its fiscal 2025 outlook.

Goldman Sachs

Neutral

maintain

$45 -> $50

2026-02-05

New

Reason

Goldman Sachs

Price Target

$45 -> $50

2026-02-05

New

maintain

Neutral

Reason

Goldman Sachs raised the firm's price target on Enact Holdings to $50 from $45 and keeps a Neutral rating on the shares. Enact reported solid Q4 results as EPS came in well ahead of expectations driven by a lower provision while expenses came in slightly below expectations and offset a touch of softness on revenues, the analyst tells investors in a research note. Fundamentals remain solid going forward, the firm adds.

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ACT Should I Buy

ACT Should I Buy

Should You Buy Enact Holdings Inc (ACT) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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