Radian Group Inc. $RDN Shares Bought by Ameriprise Financial Inc.

Key Points

• Ameriprise Financial Inc. increased its stake in Radian Group by 5.3%, owning a total of 1,569,410 shares valued at approximately $51.9 million as of its latest SEC filing.
• Radian Group's Board of Directors has initiated a $750 million share repurchase plan, indicating the company believes its stock is undervalued.
• The company has announced a quarterly dividend of $0.255 per share, resulting in an annualized yield of 2.9%.

Ameriprise Financial Inc. boosted its holdings in shares of Radian Group Inc. (NYSE:RDN - Free Report) by 5.3% in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 1,569,410 shares of the insurance provider's stock after acquiring an additional 79,159 shares during the quarter. Ameriprise Financial Inc. owned 1.17% of Radian Group worth $51,902,000 as of its most recent SEC filing.

Other large investors also recently bought and sold shares of the company. Covestor Ltd boosted its holdings in Radian Group by 42.6% during the 1st quarter. Covestor Ltd now owns 1,927 shares of the insurance provider's stock valued at $64,000 after acquiring an additional 576 shares during the period. US Bancorp DE boosted its holdings in Radian Group by 22.7% during the 1st quarter. US Bancorp DE now owns 3,972 shares of the insurance provider's stock valued at $131,000 after acquiring an additional 735 shares during the period. GAMMA Investing LLC boosted its holdings in Radian Group by 13.9% during the 1st 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 period. Quantinno Capital Management LP boosted its holdings in Radian Group by 9.8% during the 4th 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 period. Finally, Ground Swell Capital LLC purchased a new position in Radian Group during the 1st quarter valued at $290,000. Hedge funds and other institutional investors own 95.33% of the company's stock.

Insider Transactions at Radian Group

In other news, EVP Edward J. Hoffman sold 20,000 shares of the business's stock in a transaction on Monday, June 23rd. The stock was sold at an average price of $36.00, for a total value of $720,000.00. Following the completion of the transaction, the executive vice president directly owned 161,586 shares of the company's stock, valued at approximately $5,817,096. The trade was a 11.01% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Eric Ray sold 30,000 shares of the company's stock in a transaction dated Friday, June 6th. The shares were sold at an average price of $33.30, for a total value of $999,000.00. Following the transaction, the executive vice president directly owned 13,957 shares in the company, valued at $464,768.10. This represents a 68.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 86,378 shares of company stock worth $2,944,414. Company insiders own 2.16% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on RDN. Compass Point cut Radian Group from a "strong-buy" rating to a "hold" rating in a report on Friday, May 23rd. Keefe, Bruyette & Woods cut Radian Group from a "moderate buy" rating to a "hold" rating and set a $38.00 target price for the company. in a report on Monday, July 7th. UBS Group reiterated a "neutral" rating and issued a $38.00 target price (up from $36.00) on shares of Radian Group in a report on Monday, July 14th. Finally, Barclays upped their target price on Radian Group from $34.00 to $35.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 8th. Four equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, Radian Group currently has an average rating of "Hold" and a consensus price target of $37.00.

Radian Group Stock Down 0.6%

Shares of RDN traded down $0.21 during trading hours on Tuesday, hitting $34.67. The company had a trading volume of 703,308 shares, compared to its average volume of 704,137. The company has a market capitalization of $4.70 billion, a PE ratio of 8.73 and a beta of 0.75. The company has a current ratio of 1.68, a quick ratio of 1.68 and a debt-to-equity ratio of 0.54. Radian Group Inc. has a one year low of $29.32 and a one year high of $36.99. The company's fifty day moving average price is $34.57 and its two-hundred day moving average price is $33.47.

Radian Group (NYSE:RDN - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The insurance provider reported $1.01 EPS for the quarter, topping the consensus estimate of $0.93 by $0.08. The firm had revenue of $318.00 million during the quarter, compared to analyst estimates of $321.97 million. Radian Group had a return on equity of 13.25% and a net margin of 45.62%.The business's revenue for the quarter was down .9% compared to the same quarter last year. During the same period in the previous year, the company posted $0.98 EPS. As a group, equities analysts forecast that Radian Group Inc. will post 3.79 earnings per share for the current fiscal year.

Radian Group declared that its Board of Directors has initiated a stock buyback plan on Wednesday, May 21st that allows the company to buyback $750.00 million in outstanding shares. This buyback authorization allows the insurance provider to purchase up to 16.9% of its shares through open market purchases. Shares buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

Radian Group Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 9th. Stockholders of record on Monday, August 25th will be given a $0.255 dividend. This represents a $1.02 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend is Monday, August 25th. Radian Group's payout ratio is presently 25.69%.

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.