Radian Group Inc. (NYSE:RDN) Stock Now Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Radian Group, with six buys, two holds and one sell among nine analysts. The average 12-month price target is $43.14 versus the reported share price of $33.62.
• Radian reported quarterly revenue of $574.96 million, up 92.3% year over year and above estimates, but earnings per share of $1.14 fell short of the $1.34 consensus estimate. Analysts expect full-year EPS of approximately $4.88.
• The company pays a quarterly dividend of $0.255, equivalent to a 3.0% yield and a 26.22% payout ratio; institutional investors own 95.33% of outstanding shares.

Shares of Radian Group Inc. (NYSE:RDN - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the nine analysts that are presently covering the company, MarketBeat reports. One analyst has rated the stock with a sell recommendation, two have assigned a hold recommendation and six have issued a buy recommendation on the company. The average 1-year price target among analysts that have covered the stock in the last year is $43.14.

RDN has been the subject of several analyst reports. Zacks Research downgraded Radian Group from a "hold" rating to a "strong sell" rating in a research report on Tuesday, October 6th. Weiss Ratings upgraded Radian Group from a "buy (b)" rating to a "buy (b+)" rating in a research report on Monday, September 28th. Wall Street Zen lowered Radian Group from a "buy" rating to a "hold" rating in a research note on Saturday. Keefe, Bruyette & Woods dropped their price objective on Radian Group from $46.00 to $44.00 and set an "outperform" rating for the company in a research note on Tuesday, August 11th. Finally, Barclays lifted their price objective on Radian Group from $35.00 to $36.00 and gave the company an "equal weight" rating in a report on Monday, October 5th.

Radian Group Price Performance

NYSE:RDN traded down $0.25 during mid-day trading on Tuesday, hitting $33.62. The company's stock had a trading volume of 87,569 shares, compared to its average volume of 1,361,447. The company has a market capitalization of $4.45 billion, a price-to-earnings ratio of 8.63, a P/E/G ratio of 0.82 and a beta of 0.71. The company has a current ratio of 0.60, a quick ratio of 0.60 and a debt-to-equity ratio of 0.14. Radian Group has a fifty-two week low of $30.53 and a fifty-two week high of $41.05. The stock has a fifty day moving average of $35.49 and a 200-day moving average of $35.88.

Radian Group (NYSE:RDN - Get Free Report) last released its quarterly earnings data 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). Radian Group had a net margin of 32.60% and a return on equity of 13.65%. The company had revenue of $574.96 million for the quarter, compared to analyst estimates of $556.55 million. During the same period in the previous year, the firm posted $1.01 earnings per share. The firm's revenue for the quarter was up 92.3% compared to the same quarter last year. As a group, equities analysts forecast that Radian Group will post 4.88 EPS for the current fiscal year.

Radian Group Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 9th. Stockholders of record on Monday, August 24th were issued a $0.2550 dividend. The ex-dividend date of this dividend was Monday, August 24th. This represents a $1.02 annualized dividend and a dividend yield of 3.0%. Radian Group's dividend payout ratio is presently 26.22%.

Insider Buying and Selling

In other Radian Group news, EVP Meghan Bartholomew sold 7,812 shares of the company's stock in a transaction dated Monday, September 14th. The shares were 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 of the company's stock, valued at approximately $1,408,955.82. This represents a 16.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through 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.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the company. Corient Private Wealth LP acquired a new stake in shares of Radian Group in the second quarter valued at $1,099,000. Deutsche Bank AG bought a new position in shares of Radian Group in the second quarter valued at about $13,071,000. The Manufacturers Life Insurance Company acquired a new position in Radian Group during the 2nd quarter worth about $2,645,000. Fifth Third Bancorp lifted its position in Radian Group by 17,199.1% during the 1st 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 in the last quarter. Finally, GSA Capital Partners LLP bought a new stake in Radian Group during the 2nd quarter worth about $2,801,000. Institutional investors own 95.33% of the company's stock.

Radian Group Company Profile

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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