Bank of America Corp DE Increases Stock Position in Radian Group Inc. $RDN

Key Points

• Bank of America increased its Radian Group position by 26.1% in the first quarter, owning 758,110 shares valued at approximately $25.1 million. Overall, institutional investors hold 95.33% of Radian’s outstanding stock.
• Analysts maintain a generally positive outlook, with five Buy ratings and three Holds, producing a consensus “Moderate Buy” rating and an average price target of $42.17 versus the reported share price of $37.00.
• Radian reported quarterly revenue of $574.96 million, up 92.3% year over year, but earnings of $1.14 per share missed estimates by $0.20. The company declared a quarterly dividend of $0.255, equivalent to a 2.8% annualized yield.

Bank of America Corp DE grew its position in shares of Radian Group Inc. (NYSE:RDN - Free Report) by 26.1% in the first quarter, according to its most recent filing with the SEC. The fund owned 758,110 shares of the insurance provider's stock after acquiring an additional 156,770 shares during the quarter. Bank of America Corp DE owned about 0.57% of Radian Group worth $25,078,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Norges Bank purchased a new stake in shares of Radian Group in the fourth quarter valued at $77,364,000. Balyasny Asset Management L.P. lifted its stake in Radian Group by 151.7% in the third quarter. Balyasny Asset Management L.P. now owns 1,873,049 shares of the insurance provider's stock worth $67,842,000 after acquiring an additional 1,128,852 shares during the period. Donald Smith & CO. Inc. boosted its stake in shares of Radian Group by 43.7% during the fourth quarter. Donald Smith & CO. Inc. now owns 3,012,255 shares of the insurance provider's stock valued at $108,411,000 after purchasing an additional 916,003 shares in the last quarter. Millennium Management LLC boosted its position in Radian Group by 59.7% during the 3rd quarter. Millennium Management LLC now owns 1,007,172 shares of the insurance provider's stock valued at $36,480,000 after acquiring an additional 376,533 shares in the last quarter. Finally, Aegis Financial Corp bought a new stake in Radian Group during the 1st quarter valued at $9,768,000. 95.33% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Radian Group

In related news, Director Margaret Anne Leyden sold 2,070 shares of the business's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $34.59, for a total transaction of $71,601.30. Following the completion of the sale, the director directly owned 6,864 shares in the company, valued at approximately $237,425.76. The trade was a 23.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $36.00, for a total value of $130,032.00. Following the completion of the sale, the chairman directly owned 8,050 shares of the company's stock, valued at approximately $289,800. This represents a 30.97% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 15,517 shares of company stock valued at $557,610. Insiders own 2.03% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on RDN shares. Bank of America raised shares of Radian Group from an "underperform" rating to a "buy" rating and lifted their price objective for the stock from $35.00 to $43.00 in a research report on Wednesday, April 29th. Royal Bank Of Canada assumed coverage on shares of Radian Group in a research note on Friday, May 22nd. They set an "outperform" rating and a $47.00 price objective for the company. Weiss Ratings upgraded Radian Group from a "buy (b)" rating to a "buy (b+)" rating in a research note on Tuesday, August 11th. Barclays dropped their target price on Radian Group from $39.00 to $35.00 and set an "equal weight" rating on the stock in a research report on Monday, August 10th. Finally, Keefe, Bruyette & Woods cut their price target on shares of Radian Group from $46.00 to $44.00 and set an "outperform" rating on the stock in a report on Tuesday, August 11th. Five analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $42.17.

Radian Group Price Performance

Shares of NYSE RDN opened at $37.00 on Tuesday. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.60 and a current ratio of 0.60. The firm has a fifty day moving average of $37.27 and a 200 day moving average of $35.43. The firm has a market cap of $4.90 billion, a PE ratio of 9.51, a PEG ratio of 0.89 and a beta of 0.72. Radian Group Inc. has a one year low of $31.50 and a one year high of $41.05.

Radian Group (NYSE:RDN - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The insurance provider reported $1.14 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.34 by ($0.20). Radian Group had a net margin of 32.60% and a return on equity of 13.65%. The company had revenue of $574.96 million for the quarter, compared to analysts' expectations of $556.55 million. During the same period in the previous year, the business earned $1.01 earnings per share. The business's revenue for the quarter was up 92.3% on a year-over-year basis. As a group, research analysts predict that Radian Group Inc. will post 4.93 EPS for the current fiscal year.

Radian Group Dividend Announcement

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

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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