Caisse de depot et placement du Quebec Invests $89.33 Million in Radian Group Inc. $RDN

Key Points

• Caisse de dépôt et placement du Québec acquired 2.37 million Radian Group shares worth approximately $89.3 million, giving it a 1.79% stake. Institutional investors collectively own 95.33% of the company.
• Radian reported quarterly revenue of $574.96 million, up 92.3% year over year and above estimates, but earnings of $1.14 per share fell short of the $1.34 consensus forecast.
• The company declared a quarterly dividend of $0.255 per share, equivalent to an annualized $1.02 payout and a 2.8% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $42.17.

Caisse de depot et placement du Quebec acquired a new position in shares of Radian Group Inc. (NYSE:RDN - Free Report) in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm acquired 2,371,483 shares of the insurance provider's stock, valued at approximately $89,334,000. Caisse de depot et placement du Quebec owned approximately 1.79% of Radian Group as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also bought and sold shares of RDN. Northwestern Mutual Wealth Management Co. boosted its position in Radian Group by 178.9% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 742 shares of the insurance provider's stock worth $27,000 after acquiring an additional 476 shares during the last quarter. Geneos Wealth Management Inc. raised its holdings in shares of Radian Group by 191.3% in the first quarter. Geneos Wealth Management Inc. now owns 871 shares of the insurance provider's stock valued at $29,000 after purchasing an additional 572 shares during the last quarter. Fifth Third Bancorp raised its holdings in shares of Radian Group by 65.8% in the fourth quarter. Fifth Third Bancorp now owns 907 shares of the insurance provider's stock valued at $33,000 after purchasing an additional 360 shares during the last quarter. Measured Wealth Private Client Group LLC bought a new stake in shares of Radian Group in the third quarter worth $34,000. Finally, Global Retirement Partners LLC bought a new stake in shares of Radian Group in the second quarter worth $37,000. Institutional investors and hedge funds own 95.33% of the company's stock.

Radian Group Stock Performance

Shares of RDN opened at $36.75 on Thursday. The company has a market cap of $4.86 billion, a PE ratio of 9.45, a price-to-earnings-growth ratio of 0.89 and a beta of 0.72. The firm has a 50-day moving average of $37.56 and a 200-day moving average of $35.60. Radian Group Inc. has a one year low of $31.50 and a one year high of $41.05. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.60 and a quick ratio of 0.60.

Radian Group (NYSE:RDN - Get Free Report) last issued its earnings results on Thursday, August 6th. The insurance provider reported $1.14 earnings per share (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 the consensus estimate of $556.55 million. During the same period in the previous year, the company posted $1.01 earnings per share. The firm's revenue for the quarter was up 92.3% compared to the same quarter last year. As a group, equities analysts forecast that Radian Group Inc. will post 4.86 earnings per share for the current year.

Radian Group Announces Dividend

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

Insider Activity at Radian Group

In other Radian Group news, Director Margaret Anne Leyden sold 2,070 shares of the company'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 value of $71,601.30. Following the sale, the director owned 6,864 shares in the company, valued at $237,425.76. This represents a 23.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Michael S. Weinbach acquired 49,513 shares of the business's stock in a transaction dated Tuesday, June 2nd. The stock was acquired at an average cost of $34.04 per share, with a total value of $1,685,422.52. Following the completion of the transaction, the chief executive officer owned 170,000 shares of the company's stock, valued at approximately $5,786,800. The trade was a 41.09% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 2.03% of the stock is owned by corporate insiders.

Analyst Ratings Changes

A number of research analysts recently weighed in on RDN shares. Bank of America raised shares of Radian Group from an "underperform" rating to a "buy" rating and raised their target price for the company from $35.00 to $43.00 in a research report on Wednesday, April 29th. 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 research report on Tuesday, August 11th. Wall Street Zen downgraded shares of Radian Group from a "buy" rating to a "hold" rating in a research note on Sunday, August 9th. Barclays decreased their price objective on Radian Group from $39.00 to $35.00 and set an "equal weight" rating for the company in a report on Monday, August 10th. Finally, 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 target price on the stock. Five equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $42.17.

Radian Group Company 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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