American Century Companies Inc. Acquires 306,889 Shares of Radian Group Inc. (NYSE:RDN)

Key Points

• American Century Companies Inc. increased its stake in Radian Group Inc. by 9.2%, acquiring an additional 306,889 shares and now holds 3,658,250 shares valued at approximately $120.98 million.
• Radian Group announced a quarterly dividend of $0.255 per share, representing a dividend yield of 3.0%, with the payment scheduled for September 9th.
• Several hedge funds have also increased their stakes in Radian Group, including Covestor Ltd which raised its stake by 42.6% in the first quarter.

American Century Companies Inc. boosted its holdings in Radian Group Inc. (NYSE:RDN - Free Report) by 9.2% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 3,658,250 shares of the insurance provider's stock after purchasing an additional 306,889 shares during the period. American Century Companies Inc. owned approximately 2.72% of Radian Group worth $120,978,000 at the end of the most recent reporting period.

Other hedge funds have also added to or reduced their stakes in the company. Covestor Ltd lifted its stake in Radian Group by 42.6% in the first quarter. Covestor Ltd now owns 1,927 shares of the insurance provider's stock worth $64,000 after purchasing an additional 576 shares during the last quarter. US Bancorp DE lifted its stake in Radian Group by 22.7% in the first quarter. US Bancorp DE now owns 3,972 shares of the insurance provider's stock worth $131,000 after purchasing an additional 735 shares during the last quarter. GAMMA Investing LLC raised its stake in shares of Radian Group by 13.9% during the first quarter. GAMMA Investing LLC now owns 7,363 shares of the insurance provider's stock valued at $243,000 after acquiring an additional 900 shares during the last quarter. Quantinno Capital Management LP raised its stake in shares of Radian Group by 9.8% during the fourth quarter. Quantinno Capital Management LP now owns 8,629 shares of the insurance provider's stock valued at $274,000 after acquiring an additional 768 shares during the last quarter. Finally, Ground Swell Capital LLC bought a new position in shares of Radian Group during the first quarter valued at about $290,000. 95.33% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

RDN has been the subject of several recent analyst reports. Barclays upped their price objective on shares of Radian Group from $34.00 to $35.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 8th. UBS Group reaffirmed a "neutral" rating and set a $38.00 price objective (up from $36.00) on shares of Radian Group in a research note on Monday, July 14th. Keefe, Bruyette & Woods downgraded shares of Radian Group from a "moderate buy" rating to a "hold" rating and set a $38.00 price objective for the company. in a research note on Monday, July 7th. Finally, Compass Point downgraded shares of Radian Group from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 23rd.

Radian Group Price Performance

Shares of NYSE RDN opened at $34.52 on Friday. Radian Group Inc. has a 1 year low of $29.32 and a 1 year high of $36.99. The company has a debt-to-equity ratio of 0.54, a current ratio of 1.68 and a quick ratio of 1.68. The company's 50-day moving average is $34.53 and its 200 day moving average is $33.35. The stock has a market capitalization of $4.68 billion, a P/E ratio of 8.70 and a beta of 0.74.

Radian Group (NYSE:RDN - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The insurance provider reported $1.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.93 by $0.08. Radian Group had a net margin of 45.62% and a return on equity of 13.25%. The company had revenue of $318.00 million for the quarter, compared to analysts' expectations of $321.97 million. During the same quarter in the previous year, the company earned $0.98 earnings per share. Radian Group's quarterly revenue was down .9% on a year-over-year basis. On average, sell-side analysts expect that Radian Group Inc. will post 3.79 earnings per share for the current year.

Radian Group Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 9th. Investors of record on Monday, August 25th will be given a dividend of $0.255 per share. The ex-dividend date is Monday, August 25th. This represents a $1.02 annualized dividend and a dividend yield of 3.0%. Radian Group's payout ratio is currently 25.69%.

Radian Group announced that its Board of Directors has authorized a share buyback program on Wednesday, May 21st that allows the company to repurchase $750.00 million in outstanding shares. This repurchase authorization allows the insurance provider to buy up to 16.9% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's board believes its shares are undervalued.

Insider Activity at Radian Group

In related news, EVP Eric Ray sold 30,000 shares of the business's stock in a transaction dated Friday, June 6th. The shares were sold at an average price of $33.30, for a total transaction of $999,000.00. Following the transaction, the executive vice president owned 13,957 shares in the company, valued at $464,768.10. The trade was a 68.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Edward J. Hoffman sold 20,000 shares of the business's stock in a transaction dated Monday, June 23rd. The shares were sold at an average price of $36.00, for a total transaction of $720,000.00. Following the transaction, the executive vice president owned 161,586 shares in the company, valued at $5,817,096. This represents a 11.01% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 86,378 shares of company stock valued at $2,944,414 over the last three months. Corporate insiders own 2.01% of the company's stock.

About Radian Group

Radian Group Inc, together with its subsidiaries, engages in the mortgage and real estate services business in the United States. It operates through two segments, Mortgage Insurance and Homegenius segments. The Mortgage Insurance segment aggregates, manages, and distributes U.S. mortgage credit risk for mortgage lending institutions and mortgage credit investors, through private mortgage insurance on residential first-lien mortgage loans; and other credit risk management solutions, including contract underwriting.

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