30,837 Shares in Radian Group Inc. $RDN Bought by Quantbot Technologies LP

Key Points

• Quantbot Technologies LP initiated a 30,837-share position in Radian Group during the second quarter, valued at approximately $1.16 million. Institutional investors collectively own 95.33% of RDN shares.
• Radian’s CEO purchased 49,513 shares worth about $1.69 million, increasing his stake by 41.09%, while a director sold shares to cover tax withholding obligations.
• RDN recently reported $1.14 in quarterly EPS, below the $1.34 consensus estimate, despite 92.3% year-over-year revenue growth. The company announced a quarterly dividend of $0.255 per share, representing a 2.8% annualized yield, while analysts maintain a “Moderate Buy” consensus with a $42.17 average price target.

Quantbot Technologies LP acquired a new position in shares of Radian Group Inc. (NYSE:RDN - Free Report) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor acquired 30,837 shares of the insurance provider's stock, valued at approximately $1,162,000.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in RDN. Ieq Capital LLC purchased a new stake in shares of Radian Group during the second quarter worth about $432,000. Donald Smith & CO. Inc. purchased a new position in Radian Group in the 2nd quarter valued at about $163,104,000. Allworth Financial LP purchased a new position in Radian Group in the 2nd quarter valued at about $117,000. NFJ Investment Group LLC purchased a new position in Radian Group in the 2nd quarter valued at about $5,876,000. Finally, Virtus Advisers LLC acquired a new stake in Radian Group in the 2nd quarter worth about $200,000. 95.33% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, Director Margaret Anne Leyden sold 2,070 shares of the company's stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $34.59, for a total value of $71,601.30. Following the completion of the sale, the director owned 6,864 shares of the company's stock, valued at approximately $237,425.76. This represents a 23.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Michael S. Weinbach acquired 49,513 shares of the company's stock in a transaction that occurred on Tuesday, June 2nd. The stock was purchased at an average cost of $34.04 per share, with a total value of $1,685,422.52. Following the acquisition, the chief executive officer directly owned 170,000 shares of the company's stock, valued at $5,786,800. This trade represents a 41.09% increase in their position. The SEC filing for this purchase provides additional information. 2.03% of the stock is owned by company insiders.

Radian Group Stock Up 0.4%

RDN stock opened at $36.85 on Wednesday. The company has a current ratio of 0.60, a quick ratio of 0.60 and a debt-to-equity ratio of 0.14. The firm has a 50-day moving average of $37.53 and a two-hundred day moving average of $35.58. Radian Group Inc. has a 12 month low of $31.50 and a 12 month high of $41.05. The company has a market cap of $4.88 billion, a price-to-earnings ratio of 9.47, a PEG ratio of 0.89 and a beta of 0.72.

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 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 company had revenue of $574.96 million for the quarter, compared to analyst estimates of $556.55 million. During the same quarter in the prior year, the firm earned $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 Inc. will post 4.86 earnings per share for the current fiscal year.

Radian Group Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th will be paid a $0.255 dividend. The ex-dividend date of this dividend is Monday, August 24th. This represents a $1.02 dividend on an annualized basis and a dividend yield of 2.8%. Radian Group's dividend payout ratio (DPR) is 26.22%.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the company. Keefe, Bruyette & Woods cut 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. Wall Street Zen downgraded Radian Group from a "buy" rating to a "hold" rating in a research report on Sunday, August 9th. Weiss Ratings raised Radian Group from a "buy (b)" rating to a "buy (b+)" rating in a research note on Tuesday, August 11th. Bank of America upgraded Radian Group from an "underperform" rating to a "buy" rating and boosted their price target for the stock from $35.00 to $43.00 in a research report on Wednesday, April 29th. Finally, Barclays reduced their price objective 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. Five analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $42.17.

About Radian Group

Radian Group Inc NYSE: RDN is a leading provider of private mortgage insurance and related risk management solutions in the United States. Through its primary subsidiary, Radian Guaranty Inc, the company underwrites borrower-paid and lender-paid mortgage insurance that protects lenders and investors from potential losses arising from borrower defaults. Radian's core business focuses on supporting residential mortgage originations and servicing by offering capital-efficient credit protection and credit risk transfer strategies.

Beyond mortgage insurance, Radian offers an array of real estate transaction services under its Radian Title division.

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