Radian Group (NYSE:RDN) Stock Dropped to "Strong Sell" by Zacks Research

Key Points

• Zacks Research downgraded Radian Group from “hold” to “strong sell,” despite the broader analyst consensus remaining “Moderate Buy” with a $43.14 target price.
• Radian shares opened at $33.67, down 1.3%, below the company’s 50- and 200-day moving averages of roughly $35.80–$35.86.
• The company recently reported $1.14 in quarterly EPS, missing estimates of $1.34, although revenue rose 92.3% year over year to $574.96 million; institutional investors own 95.33% of its stock.

Radian Group (NYSE:RDN - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Tuesday, Zacks reports.

RDN has been the topic of a number of other research reports. Barclays raised their price objective on shares of Radian Group from $35.00 to $36.00 and gave the stock an "equal weight" rating in a report on Monday. Weiss Ratings raised shares of Radian Group from a "buy (b)" rating to a "buy (b+)" rating in a report on Monday, September 28th. BTIG Research began coverage on shares of Radian Group in a research note on Tuesday, September 22nd. They set a "buy" rating and a $48.00 price target on the stock. Keefe, Bruyette & Woods dropped their price target on shares of Radian Group from $46.00 to $44.00 and set an "outperform" rating on the stock in a research note on Tuesday, August 11th. Finally, Wall Street Zen raised shares of Radian Group from a "hold" rating to a "buy" rating in a research report on Saturday, September 19th. Six analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $43.14.

Radian Group Stock Down 1.3%

RDN stock opened at $33.67 on Tuesday. Radian Group has a fifty-two week low of $30.53 and a fifty-two week high of $41.05. The business's 50-day moving average is $35.80 and its two-hundred day moving average is $35.86. 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 cap of $4.45 billion, a price-to-earnings ratio of 8.66, a P/E/G ratio of 0.83 and a beta of 0.71.

Radian Group (NYSE:RDN - Get Free Report) last announced its earnings results on Thursday, August 6th. The insurance provider reported $1.14 earnings per share (EPS) for the quarter, missing the consensus estimate 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 analysts' expectations of $556.55 million. During the same period in the previous year, the business posted $1.01 earnings per share. The company's revenue for the quarter was up 92.3% on a year-over-year basis. As a group, analysts forecast that Radian Group will post 4.86 earnings per share for the current year.

Insiders Place Their Bets

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

Institutional Investors Weigh In On Radian Group

Institutional investors and hedge funds have recently bought and sold shares of the business. BlackRock Inc. bought a new position in shares of Radian Group in the second quarter worth about $728,072,000. Dimensional Fund Advisors LP raised its stake in Radian Group by 4.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 5,948,335 shares of the insurance provider's stock valued at $196,773,000 after purchasing an additional 230,912 shares during the period. Donald Smith & CO. Inc. bought a new stake in Radian Group during the 2nd quarter valued at approximately $163,104,000. Caisse de depot et placement du Quebec purchased a new position in Radian Group in the 2nd quarter worth approximately $89,334,000. Finally, Bruni J V & Co. Co. purchased a new position in Radian Group in the 2nd quarter worth approximately $59,355,376. 95.33% of the stock is owned by institutional investors.

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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