Barclays Forecasts Strong Price Appreciation for Radian Group (NYSE:RDN) Stock

Key Points

• Barclays raised its price target for Radian Group to $36 from $35 while maintaining an “equal weight” rating, implying 7.87% upside from the prior close.
• Analyst sentiment is broadly positive, with six Buy ratings and three Holds producing a “Moderate Buy” consensus and an average price target of $43.14.
• Radian shares rose 2.5% to $33.38, while the company’s latest quarterly revenue increased 92.3% year over year to $574.96 million, though EPS missed estimates.

Radian Group (NYSE:RDN - Get Free Report) had its target price lifted by stock analysts at Barclays from $35.00 to $36.00 in a research note issued to investors on Monday, Benzinga reports. The firm currently has an "equal weight" rating on the insurance provider's stock. Barclays's price target would indicate a potential upside of 7.87% from the company's previous close.

A number of other research firms have also issued reports on RDN. Keefe, Bruyette & Woods reduced their target price on Radian Group from $46.00 to $44.00 and set an "outperform" rating for the company in a report on Tuesday, August 11th. Weiss Ratings raised Radian Group from a "buy (b)" rating to a "buy (b+)" rating in a research report on Monday, September 28th. Wall Street Zen raised Radian Group from a "hold" rating to a "buy" rating in a research note on Saturday, September 19th. Finally, BTIG Research initiated coverage on Radian Group in a research note on Tuesday, September 22nd. They set a "buy" rating and a $48.00 target price on the stock. Six investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $43.14.

Radian Group Trading Up 2.5%

Shares of RDN stock traded up $0.81 during trading hours on Monday, reaching $33.38. 568,966 shares of the stock traded hands, compared to its average volume of 1,323,415. Radian Group has a 1-year low of $30.53 and a 1-year high of $41.05. The business has a fifty day moving average price of $36.13 and a 200 day moving average price of $35.84. The company has a quick ratio of 0.60, a current ratio of 0.60 and a debt-to-equity ratio of 0.14. The firm has a market capitalization of $4.42 billion, a PE ratio of 8.60, a PEG ratio of 0.79 and a beta of 0.71.

Radian Group (NYSE:RDN - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The insurance provider reported $1.14 EPS for the quarter, missing analysts' consensus estimates of $1.34 by ($0.20). Radian Group had a return on equity of 13.65% and a net margin of 32.60%.The firm had revenue of $574.96 million during the quarter, compared to analyst estimates of $556.55 million. During the same period in the prior year, the business posted $1.01 EPS. The company's revenue for the quarter was up 92.3% on a year-over-year basis. On average, equities research analysts forecast that Radian Group will post 4.86 EPS for the current year.

Insider Buying and Selling at Radian Group

In related news, EVP Meghan Bartholomew sold 7,812 shares of the stock in a transaction on Monday, September 14th. The stock was sold at an average price of $35.94, for a total transaction of $280,763.28. Following the completion of the sale, the executive vice president directly owned 39,203 shares in the company, valued at approximately $1,408,955.82. This trade represents a 16.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 2.03% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Corient Private Wealth LP acquired a new stake in shares of Radian Group during the 2nd quarter valued at about $1,099,000. Deutsche Bank AG bought a new stake in shares of Radian Group in the 2nd quarter valued at approximately $13,071,000. The Manufacturers Life Insurance Company bought a new stake in shares of Radian Group in the 2nd quarter valued at approximately $2,645,000. Fifth Third Bancorp increased its holdings in Radian Group by 17,199.1% in the first quarter. Fifth Third Bancorp now owns 156,903 shares of the insurance provider's stock worth $5,190,000 after buying an additional 155,996 shares during the last quarter. Finally, GSA Capital Partners LLP acquired a new position in Radian Group in the second quarter worth approximately $2,801,000. Hedge funds and other institutional investors own 95.33% of the company's stock.

About Radian Group

Radian Group Inc NYSE: RDN is a financial services company focused on supporting homeownership and the U.S. residential real estate market. Its principal business is mortgage insurance, which helps protect lenders and investors against losses when borrowers default on certain residential mortgage loans. Through its mortgage insurance operations, Radian serves mortgage lenders, banks, credit unions and other housing-finance participants.

The company also provides services and technology intended to support the mortgage and homeownership lifecycle.

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