Bank of New York Mellon Corp Invests $42.77 Million in Radian Group Inc. $RDN

Key Points

• Bank of New York Mellon acquired 1.14 million Radian Group shares worth approximately $42.8 million, representing 0.85% of the company. Institutional investors collectively own 95.33% of Radian’s stock.
• Radian reported quarterly EPS of $1.14, missing analysts’ $1.34 estimate, while revenue rose 92.3% year over year to $574.96 million. The company declared a quarterly dividend of $0.255 per share, equating to a 2.8% annualized yield.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $42.17, compared with the stock’s reported opening price of $36.51.

Bank of New York Mellon Corp acquired a new stake in Radian Group Inc. (NYSE:RDN - Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 1,135,373 shares of the insurance provider's stock, valued at approximately $42,769,000. Bank of New York Mellon Corp owned 0.85% of Radian Group as of its most recent SEC filing.

Other large investors have also bought and sold shares of the company. Fifth Third Bancorp raised its holdings in Radian Group by 17,199.1% during the 1st quarter. Fifth Third Bancorp now owns 156,903 shares of the insurance provider's stock worth $5,190,000 after purchasing an additional 155,996 shares during the last quarter. Jefferies Financial Group Inc. boosted its stake in shares of Radian Group by 331.2% in the 4th quarter. Jefferies Financial Group Inc. now owns 94,867 shares of the insurance provider's stock valued at $3,414,000 after purchasing an additional 72,867 shares during the last quarter. GSA Capital Partners LLP bought a new stake in shares of Radian Group in the 2nd quarter valued at $2,801,000. Donald Smith & CO. Inc. increased its position 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 worth $108,411,000 after buying an additional 916,003 shares during the period. Finally, Weiss Asset Management LP acquired a new stake in shares of Radian Group during the first quarter worth $2,708,000. 95.33% of the stock is owned by institutional investors.

Radian Group Stock Down 0.8%

RDN stock opened at $36.51 on Friday. The stock's 50 day simple moving average is $37.60 and its 200 day simple moving average is $35.62. The company has a market cap of $4.83 billion, a P/E ratio of 9.39, a price-to-earnings-growth ratio of 0.89 and a beta of 0.72. 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.

Radian Group (NYSE:RDN - Get Free Report) last announced its quarterly earnings data 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 firm had revenue of $574.96 million during the quarter, compared to analyst estimates of $556.55 million. During the same period last year, the business posted $1.01 EPS. The company's revenue was up 92.3% on a year-over-year basis. On average, research analysts expect that Radian Group Inc. will post 4.86 earnings per share for the current fiscal year.

Radian Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th will be issued a dividend of $0.255 per share. The ex-dividend date is Monday, August 24th. This represents a $1.02 annualized dividend and a yield of 2.8%. Radian Group's dividend payout ratio is presently 26.22%.

Insider Buying and Selling at Radian Group

In other Radian Group news, CEO Michael S. Weinbach acquired 120,487 shares of the company's stock in a transaction on Monday, June 1st. The shares were purchased at an average cost of $33.89 per share, with a total value of $4,083,304.43. Following the completion of the purchase, the chief executive officer owned 120,487 shares of the company's stock, valued at approximately $4,083,304.43. This represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 2.03% of the company's stock.

Wall Street Analyst Weigh In

RDN has been the topic of several recent analyst reports. Barclays dropped their target price on shares of Radian Group from $39.00 to $35.00 and set an "equal weight" rating on the stock in a report on Monday, August 10th. Keefe, Bruyette & Woods decreased their price target on Radian Group from $46.00 to $44.00 and set an "outperform" rating for the company in a report on Tuesday, August 11th. Royal Bank Of Canada assumed coverage on Radian Group in a research report on Friday, May 22nd. They issued an "outperform" rating and a $47.00 price objective for the company. Wall Street Zen downgraded Radian Group from a "buy" rating to a "hold" rating in a research note on Sunday, August 9th. Finally, Weiss Ratings upgraded Radian Group from a "buy (b)" rating to a "buy (b+)" rating in a research report on Tuesday, August 11th. Five equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, Radian Group has a consensus rating of "Moderate Buy" and an average price target of $42.17.

Radian Group 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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