Radian Group (NYSE:RDN) Rating Increased to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Radian Group from “hold” to “buy.” Analysts overall rate the stock “Moderate Buy,” with five Buy ratings and three Holds, and an average price target of $42.17.
• Radian shares opened at $34.98, while the company reported quarterly revenue of $574.96 million—above estimates—but earnings per share of $1.14 missed the $1.34 consensus forecast.
• Institutional ownership stands at 95.33%, with BlackRock and several other major investors recently initiating or increasing positions. An executive vice president sold 7,812 shares under a pre-arranged trading plan.

Radian Group (NYSE:RDN - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Saturday, Wall Street Zen reports.

RDN has been the subject of a number of other research reports. Royal Bank Of Canada assumed coverage on Radian Group in a research report on Friday, May 22nd. They set an "outperform" rating and a $47.00 price objective for the company. Barclays dropped their price target on Radian Group from $39.00 to $35.00 and set an "equal weight" rating for the company in a research note on Monday, August 10th. Keefe, Bruyette & Woods cut their price target on Radian Group from $46.00 to $44.00 and set an "outperform" rating for the company in a report on Tuesday, August 11th. Finally, Weiss Ratings downgraded Radian Group from a "buy (b+)" rating to a "buy (b)" rating in a research note on Friday, September 11th. Five investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $42.17.

Radian Group Price Performance

RDN stock opened at $34.98 on Friday. Radian Group has a one year low of $31.50 and a one year high of $41.05. The company's fifty day moving average price is $37.21 and its 200-day moving average price is $35.87. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.60 and a current ratio of 0.60. The company has a market capitalization of $4.63 billion, a PE ratio of 8.99, a price-to-earnings-growth ratio of 0.84 and a beta of 0.70.

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

Insider Transactions at Radian Group

In other Radian Group news, EVP Meghan Bartholomew sold 7,812 shares of the company's stock in a transaction that occurred 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 sale, the executive vice president directly owned 39,203 shares in the company, valued at $1,408,955.82. This represents a 16.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.03% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Radian Group

Several large investors have recently modified their holdings of RDN. BlackRock Inc. bought a new position in Radian Group during the 2nd quarter valued at about $728,072,000. Dimensional Fund Advisors LP raised its holdings in shares of Radian Group by 4.0% in the first quarter. Dimensional Fund Advisors LP now owns 5,948,335 shares of the insurance provider's stock worth $196,773,000 after buying an additional 230,912 shares during the period. Donald Smith & CO. Inc. purchased a new stake in shares of Radian Group in the second quarter worth approximately $163,104,000. Caisse de depot et placement du Quebec bought a new stake in shares of Radian Group during the 2nd quarter worth approximately $89,334,000. Finally, Norges Bank bought a new stake in shares of Radian Group during the 4th quarter worth approximately $77,364,000. Institutional investors own 95.33% of the company's stock.

Radian Group Company Profile

Radian Group Inc is a Philadelphia-based provider of private mortgage insurance and related risk-management services. Through its principal subsidiary, Radian Guaranty Inc, the company helps lenders manage credit risk on residential mortgages, primarily by insuring loans that have relatively low down payments. Mortgage insurance can enable qualified borrowers to obtain home financing without making a traditional 20% down payment.

Radian's mortgage insurance products are designed for lenders, mortgage originators and investors in the United States.

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