Aegis Financial Corp Invests $9.77 Million in Radian Group Inc. $RDN

Key Points

• Aegis Financial Corp opened a new position in Radian Group during the first quarter, buying 295,274 shares valued at about $9.77 million. The stake represents roughly 1.7% of Aegis’s portfolio and about 0.22% of Radian’s shares outstanding.
• Radian Group reported strong first-quarter results, with EPS of $1.27 beating expectations and revenue of $466.34 million well above forecasts. Revenue also rose 46.6% year over year, and analysts now expect full-year EPS of 5.17.
• The company pays a quarterly dividend of $0.255 per share, or $1.02 annually, for a yield of about 2.7%. Meanwhile, insider selling and mixed analyst actions have kept sentiment balanced, with the stock carrying a consensus Moderate Buy rating and a target price of $43.17.

Aegis Financial Corp acquired a new position in shares of Radian Group Inc. (NYSE:RDN - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 295,274 shares of the insurance provider's stock, valued at approximately $9,768,000. Radian Group comprises about 1.7% of Aegis Financial Corp's investment portfolio, making the stock its 19th largest holding. Aegis Financial Corp owned approximately 0.22% of Radian Group at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in RDN. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Radian Group by 178.9% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 742 shares of the insurance provider's stock worth $27,000 after buying an additional 476 shares during the last quarter. V Square Quantitative Management LLC acquired a new stake in shares of Radian Group in the fourth quarter worth $29,000. Geneos Wealth Management Inc. grew its stake in shares of Radian Group by 191.3% in the first quarter. Geneos Wealth Management Inc. now owns 871 shares of the insurance provider's stock worth $29,000 after acquiring an additional 572 shares during the last quarter. Fifth Third Bancorp increased its position in Radian Group by 65.8% during the fourth quarter. Fifth Third Bancorp now owns 907 shares of the insurance provider's stock worth $33,000 after acquiring an additional 360 shares during the period. Finally, Measured Wealth Private Client Group LLC bought a new position in Radian Group during the third quarter worth $34,000. Institutional investors own 95.33% of the company's stock.

Radian Group Stock Down 0.6%

Shares of RDN opened at $38.26 on Thursday. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 0.16. The company has a 50-day moving average price of $36.36 and a two-hundred day moving average price of $34.92. The stock has a market cap of $5.09 billion, a price-to-earnings ratio of 9.42, a P/E/G ratio of 0.97 and a beta of 0.72. Radian Group Inc. has a 12 month low of $31.50 and a 12 month high of $41.05.

Radian Group (NYSE:RDN - Get Free Report) last issued its earnings results on Thursday, May 7th. The insurance provider reported $1.27 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.17 by $0.10. Radian Group had a return on equity of 13.57% and a net margin of 40.50%.The business had revenue of $466.34 million during the quarter, compared to analysts' expectations of $377.83 million. During the same period in the prior year, the firm posted $0.99 EPS. Radian Group's quarterly revenue was up 46.6% compared to the same quarter last year. Equities analysts predict that Radian Group Inc. will post 5.17 EPS for the current fiscal year.

Radian Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 17th. Stockholders of record on Tuesday, June 2nd were issued a $0.255 dividend. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $1.02 annualized dividend and a dividend yield of 2.7%. Radian Group's dividend payout ratio is presently 25.12%.

Insiders Place Their Bets

In other Radian Group news, Director Margaret Anne Leyden sold 2,070 shares of the business'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 transaction, the director directly owned 6,864 shares in the company, valued at $237,425.76. The trade was a 23.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Chairman Howard Bernard Culang sold 3,612 shares of the company's stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $36.00, for a total transaction of $130,032.00. Following the sale, the chairman directly owned 8,050 shares in the company, valued at $289,800. This represents a 30.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 45,516 shares of company stock worth $1,682,576 in the last quarter. 2.03% of the stock is owned by corporate insiders.

Analyst Ratings Changes

RDN has been the topic of several research analyst reports. Zacks Research lowered shares of Radian Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 20th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Radian Group in a research report on Tuesday, June 16th. Keefe, Bruyette & Woods increased their target price on shares of Radian Group from $43.00 to $46.00 and gave the company an "outperform" rating in a research note on Thursday, June 25th. Wall Street Zen downgraded Radian Group from a "buy" rating to a "hold" rating in a research report on Sunday, July 12th. Finally, Barclays boosted their price target on Radian Group from $37.00 to $39.00 and gave the company an "equal weight" rating in a research note on Monday, May 11th. Five investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $43.17.

Radian Group Company Profile

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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