JPMorgan Raises Essent Group (ESNT) Target as Policy Risk Clouds Consumer Finance

Essent Group Ltd. (NYSE:ESNT) is included among the 15 Dividend Growth Stocks with the Highest Growth Rates.

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On January 9, JPMorgan analyst Richard Shane lifted the firm’s price target on Essent Group Ltd. (NYSE:ESNT) to $66 from $65 and kept a Neutral rating on the stock. The move came as JPMorgan updated ratings and price targets across the consumer finance group ahead of Q4 earnings. In his note, Shane pointed to fresh uncertainty tied to President Trump’s proposal that would require credit card issuers to cap interest rates at 10% for one year. He said the idea adds near-term volatility for the sector. JPMorgan warned that if such a cap were implemented, it “would fundamentally reshape the card industry,” cutting into issuer profitability and limiting credit access for consumers. Still, the firm described Trump’s post as a “high-severity, low-probability risk likely subject to significant legal challenges.” Given the backdrop, the analyst said a defensive stance in consumer finance still makes sense.

On the fundamentals side, Essent posted net income of $164 million in Q3 2025, with diluted EPS of $1.67. US mortgage insurance in force rose to $249 billion, up 2% from a year earlier, while persistency stayed solid at 86%.

Chairman and CEO Mark Casale highlighted the company’s strong capital position and said Essent had repurchased nearly 9 million shares for more than $500 million year-to-date through October 31. He also announced a new $500 million share repurchase authorization running through year-end 2027, along with a Q4 dividend of $0.31 per share.

Essent Group Ltd. (NYSE:ESNT) is a Bermuda-based holding company. Through its wholly owned subsidiaries, it provides private mortgage insurance and reinsurance, as well as title insurance and settlement services for mortgage lenders, borrowers, and investors.

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