Bank of America Corp DE Takes $22.28 Million Position in Radian Group Inc. $RDN

Key Points

• Bank of America acquired a new $22.28 million stake in Radian Group, purchasing 591,450 shares and owning approximately 0.45% of the company. Institutional investors collectively hold 95.33% of Radian’s shares.
• Analysts remain broadly positive, with six Buy ratings and three Holds, resulting in a “Moderate Buy” consensus and an average price target of $43 versus the stock’s reported $34.54 price.
• Radian reported quarterly revenue of $574.96 million, up 92.3% year over year, but earnings of $1.14 per share fell short of the $1.34 consensus estimate. The company maintains a quarterly dividend of $0.255, equivalent to a 3.0% annualized yield.

Bank of America Corp DE acquired a new stake in shares of Radian Group Inc. (NYSE:RDN - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 591,450 shares of the insurance provider's stock, valued at approximately $22,280,000. Bank of America Corp DE owned about 0.45% of Radian Group at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of the business. Global Retirement Partners LLC purchased a new position in shares of Radian Group during the second quarter valued at approximately $37,000. Root Financial Partners LLC raised its stake in Radian Group by 67.3% during the 1st quarter. Root Financial Partners LLC now owns 1,288 shares of the insurance provider's stock valued at $43,000 after buying an additional 518 shares during the last quarter. Hantz Financial Services Inc. lifted its holdings in shares of Radian Group by 26.9% during the 4th quarter. Hantz Financial Services Inc. now owns 1,553 shares of the insurance provider's stock valued at $56,000 after buying an additional 329 shares during the period. Parallel Advisors LLC lifted its holdings in shares of Radian Group by 439.9% during the 1st quarter. Parallel Advisors LLC now owns 2,262 shares of the insurance provider's stock valued at $75,000 after buying an additional 1,843 shares during the period. Finally, Allworth Financial LP purchased a new position in shares of Radian Group in the 2nd quarter worth $117,000. 95.33% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the company. BTIG Research began coverage on Radian Group in a research report on Tuesday. They issued a "buy" rating and a $48.00 target price on the stock. Barclays reduced their price target on shares of Radian Group from $39.00 to $35.00 and set an "equal weight" rating for the company in a research report on Monday, August 10th. Weiss Ratings cut shares of Radian Group from a "buy (b+)" rating to a "buy (b)" rating in a research note on Friday, September 11th. Wall Street Zen raised shares of Radian Group from a "hold" rating to a "buy" rating in a report on Saturday, September 19th. Finally, Keefe, Bruyette & Woods cut their target price on shares of Radian Group from $46.00 to $44.00 and set an "outperform" rating for the company in a research report on Tuesday, August 11th. Six equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, Radian Group has an average rating of "Moderate Buy" and an average target price of $43.00.

Insiders Place Their Bets

In other Radian Group news, EVP Meghan Bartholomew sold 7,812 shares of the stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $35.94, for a total transaction of $280,763.28. Following the completion of the sale, the executive vice president directly owned 39,203 shares of the company's stock, valued at $1,408,955.82. This trade represents a 16.62% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.03% of the stock is owned by insiders.

Radian Group Stock Down 0.4%

RDN opened at $34.54 on Thursday. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.60 and a current ratio of 0.60. Radian Group Inc. has a fifty-two week low of $31.50 and a fifty-two week high of $41.05. The firm's fifty day moving average is $37.01 and its 200 day moving average is $35.88. The stock has a market cap of $4.57 billion, a price-to-earnings ratio of 8.88, a price-to-earnings-growth ratio of 0.84 and a beta of 0.70.

Radian Group (NYSE:RDN - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The insurance provider reported $1.14 EPS for the quarter, missing analysts' consensus estimates of $1.34 by ($0.20). Radian Group had a net margin of 32.60% and a return on equity of 13.65%. The business had revenue of $574.96 million for the quarter, compared to the consensus estimate of $556.55 million. During the same period in the prior year, the business earned $1.01 earnings per share. Radian Group's revenue was up 92.3% compared to the same quarter last year. On average, sell-side analysts forecast that Radian Group Inc. will post 4.86 earnings per share for the current fiscal year.

Radian Group Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th were paid a $0.255 dividend. This represents a $1.02 annualized dividend and a yield of 3.0%. The ex-dividend date was Monday, August 24th. Radian Group's dividend payout ratio is presently 26.22%.

Radian Group Company Profile

Radian Group Inc is a Philadelphia-based provider of private mortgage insurance and related risk-management services. Through its principal subsidiary, Radian Guaranty Inc, the company helps lenders manage credit risk on residential mortgages, primarily by insuring loans that have relatively low down payments. Mortgage insurance can enable qualified borrowers to obtain home financing without making a traditional 20% down payment.

Radian's mortgage insurance products are designed for lenders, mortgage originators and investors in the United States.

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