Radian Group (NYSE:RDN) Releases Quarterly Earnings Results, Beats Expectations By $0.24 EPS

Key Points

• Radian Group reported quarterly EPS of $1.44, beating analyst expectations of $1.20 by $0.24; net margin was 32.60% and return on equity was 13.65%.
• The stock rose $0.78 to $36.62 in Wednesday trading. Analysts’ consensus rating was Moderate Buy, with an average price target of $43.14.
• Radian declared a quarterly dividend of $0.255 per share, equivalent to $1.02 annually and a 2.8% yield.

Radian Group (NYSE:RDN - Get Free Report) posted its quarterly earnings data on Wednesday. The insurance provider reported $1.44 EPS for the quarter, beating the consensus estimate of $1.20 by $0.24, Zacks reports. Radian Group had a net margin of 32.60% and a return on equity of 13.65%.

Radian Group Stock Performance

NYSE RDN traded up $0.78 during trading hours on Wednesday, reaching $36.62. The company's stock had a trading volume of 1,024,678 shares, compared to its average volume of 1,371,570. The stock has a market cap of $4.84 billion, a PE ratio of 9.41, a PEG ratio of 0.90 and a beta of 0.69. The business has a 50-day simple moving average of $34.80 and a 200 day simple moving average of $35.22. 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 52 week low of $30.53 and a 52 week high of $41.05.

Radian Group Announces Dividend

The firm also recently declared 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 2.8%. Radian Group's payout ratio is 26.22%.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on RDN shares. Weiss Ratings cut Radian Group from a "buy (b+)" rating to a "buy (b)" rating in a research note on Tuesday, October 13th. BTIG Research began coverage on Radian Group in a research note on Tuesday, September 22nd. They set a "buy" rating and a $48.00 price target for the company. Zacks Research raised Radian Group from a "strong sell" rating to a "hold" rating in a report on Tuesday, October 13th. Keefe, Bruyette & Woods cut their price target on shares of Radian Group from $46.00 to $44.00 and set an "outperform" rating for the company in a report on Tuesday, August 11th. Finally, Wall Street Zen downgraded Radian Group from a "buy" rating to a "hold" rating in a research report on Saturday, October 10th. Six investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $43.14.

Insider Buying and Selling

In other Radian Group news, EVP Meghan Bartholomew sold 7,812 shares of Radian Group 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 sale, the executive vice president owned 39,203 shares of the company's stock, valued at $1,408,955.82. The trade was a 16.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.03% of the stock is currently owned by corporate insiders.

About Radian Group

Radian Group Inc NYSE: RDN is a financial services company that provides mortgage insurance and related services to the residential real estate industry. Through its mortgage insurance subsidiaries, including Radian Guaranty Inc, the company helps lenders manage credit risk on residential mortgages, particularly loans made to borrowers with smaller down payments. Its insurance can also help borrowers obtain home financing without contributing a traditional 20% down payment.

Radian's mortgage insurance business serves mortgage lenders, banks, credit unions and other housing finance participants primarily in the United States.

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