Citigroup Inc. Increases Position in Radian Group Inc. $RDN

Key Points

• Citigroup Inc. has increased its stake in Radian Group Inc. by 36.2%, acquiring an additional 108,398 shares, bringing its total ownership to 408,008 shares valued at approximately $13.5 million.
• Radian Group reported earnings of $1.01 per share, exceeding the consensus estimate, although revenues fell slightly from the previous year.
• The company has announced a $750 million stock repurchase plan, signaling confidence from management that the stock is undervalued, along with a quarterly dividend payout of $0.255 per share.

Citigroup Inc. lifted its holdings in Radian Group Inc. (NYSE:RDN - Free Report) by 36.2% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 408,008 shares of the insurance provider's stock after acquiring an additional 108,398 shares during the period. Citigroup Inc. owned approximately 0.30% of Radian Group worth $13,493,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently made changes to their positions in the company. US Bancorp DE raised its position in shares of Radian Group by 22.7% in the 1st quarter. US Bancorp DE now owns 3,972 shares of the insurance provider's stock worth $131,000 after acquiring an additional 735 shares in the last quarter. GAMMA Investing LLC grew its stake in shares of Radian Group by 13.9% in the 1st quarter. GAMMA Investing LLC now owns 7,363 shares of the insurance provider's stock valued at $243,000 after buying an additional 900 shares during the period. Quantinno Capital Management LP grew its stake in shares of Radian Group by 9.8% in the 4th quarter. Quantinno Capital Management LP now owns 8,629 shares of the insurance provider's stock valued at $274,000 after buying an additional 768 shares during the period. Cerity Partners LLC grew its stake in shares of Radian Group by 27.8% in the 1st quarter. Cerity Partners LLC now owns 11,324 shares of the insurance provider's stock valued at $374,000 after buying an additional 2,465 shares during the period. Finally, Xponance Inc. grew its stake in shares of Radian Group by 5.0% in the 1st quarter. Xponance Inc. now owns 11,379 shares of the insurance provider's stock valued at $376,000 after buying an additional 538 shares during the period. 95.33% of the stock is owned by institutional investors.

Insider Buying and Selling at Radian Group

In other Radian Group news, Director Noel Joseph Spiegel sold 5,105 shares of Radian Group stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $33.66, for a total transaction of $171,834.30. Following the completion of the transaction, the director owned 20,008 shares in the company, valued at approximately $673,469.28. The trade was a 20.33% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Edward J. Hoffman sold 20,000 shares of the business's stock in a transaction that occurred 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 owned 161,586 shares in the company, valued at $5,817,096. The trade was a 11.01% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 86,378 shares of company stock worth $2,944,414. 2.16% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

RDN has been the subject of several research reports. Keefe, Bruyette & Woods downgraded Radian Group from a "moderate buy" rating to a "hold" rating and set a $38.00 target price for the company. in a research note on Monday, July 7th. Barclays raised their target price on Radian Group from $34.00 to $35.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 8th. UBS Group restated a "neutral" rating and issued a $38.00 target price (up from $36.00) on shares of Radian Group in a research note on Monday, July 14th. Finally, Compass Point downgraded Radian Group from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 23rd. Four analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $37.00.

Radian Group Stock Up 1.3%

RDN stock traded up $0.45 during mid-day trading on Tuesday, reaching $34.83. 74,215 shares of the company traded hands, compared to its average volume of 1,464,651. The stock has a market cap of $4.72 billion, a price-to-earnings ratio of 8.77 and a beta of 0.74. The company has a quick ratio of 1.68, a current ratio of 1.68 and a debt-to-equity ratio of 0.54. Radian Group Inc. has a fifty-two week low of $29.32 and a fifty-two week high of $36.99. The firm's 50 day moving average price is $34.55 and its 200 day moving average price is $33.34.

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

Radian Group declared that its Board of Directors has authorized a share repurchase program on Wednesday, May 21st that allows the company to repurchase $750.00 million in outstanding shares. This repurchase authorization allows the insurance provider to reacquire up to 16.9% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's leadership believes its shares are undervalued.

Radian Group Announces Dividend

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