Connor Clark & Lunn Investment Management Ltd. Acquires New Stake in Radian Group Inc. $RDN

Key Points

• Connor Clark & Lunn Investment Management acquired 55,999 Radian Group shares worth approximately $2.1 million in the second quarter. Institutional investors and hedge funds collectively own 95.33% of RDN.
• Radian’s CEO Michael S. Weinbach purchased 49,513 shares at an average price of $34.04, increasing his holdings by 41.09%; insiders own 2.03% of the company.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $42.17. Radian reported revenue growth of 92.3% year over year but missed quarterly EPS estimates, and declared a $0.255 quarterly dividend yielding about 2.8%.

Connor Clark & Lunn Investment Management Ltd. bought a new stake in shares of Radian Group Inc. (NYSE:RDN - Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm bought 55,999 shares of the insurance provider's stock, valued at approximately $2,109,000.

Several other institutional investors also recently bought and sold shares of RDN. Northwestern Mutual Wealth Management Co. raised its position in Radian Group by 178.9% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 742 shares of the insurance provider's stock valued at $27,000 after purchasing an additional 476 shares in the last quarter. Geneos Wealth Management Inc. increased its stake in shares of Radian Group by 191.3% during the first quarter. Geneos Wealth Management Inc. now owns 871 shares of the insurance provider's stock worth $29,000 after buying an additional 572 shares during the period. Fifth Third Bancorp raised its holdings in 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 acquiring an additional 360 shares in the last quarter. Measured Wealth Private Client Group LLC acquired a new stake in Radian Group in the third quarter valued at approximately $34,000. Finally, Global Retirement Partners LLC purchased a new position in Radian Group in the second quarter worth approximately $37,000. 95.33% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, CEO Michael S. Weinbach bought 49,513 shares of the stock in a transaction on Tuesday, June 2nd. The shares were bought at an average price of $34.04 per share, with a total value of $1,685,422.52. Following the completion of the acquisition, the chief executive officer owned 170,000 shares of the company's stock, valued at approximately $5,786,800. This trade represents a 41.09% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 2.03% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on RDN shares. Barclays decreased their price objective 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. Keefe, Bruyette & Woods cut their price target on Radian Group from $46.00 to $44.00 and set an "outperform" rating on the stock in a research note on Tuesday, August 11th. Wall Street Zen downgraded Radian Group from a "buy" rating to a "hold" rating in a report on Sunday, August 9th. Weiss Ratings raised Radian Group from a "buy (b)" rating to a "buy (b+)" rating in a report on Tuesday, August 11th. Finally, Royal Bank Of Canada began coverage on Radian Group in a research report on Friday, May 22nd. They set an "outperform" rating and a $47.00 price objective for the company. Five investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, Radian Group currently has an average rating of "Moderate Buy" and an average target price of $42.17.

Radian Group Price Performance

Radian Group stock opened at $36.52 on Friday. Radian Group Inc. has a twelve month low of $31.50 and a twelve month high of $41.05. The stock has a 50 day moving average of $37.64 and a two-hundred day moving average of $35.63. The company has a current ratio of 0.60, a quick ratio of 0.60 and a debt-to-equity ratio of 0.14. The stock has a market capitalization of $4.83 billion, a price-to-earnings ratio of 9.39, a PEG ratio of 0.88 and a beta of 0.72.

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 return on equity of 13.65% and a net margin of 32.60%.The firm had revenue of $574.96 million for the quarter, compared to analysts' expectations of $556.55 million. During the same quarter in the previous year, the company posted $1.01 EPS. The firm's quarterly revenue was up 92.3% compared to the same quarter last year. As a group, research analysts expect that Radian Group Inc. will post 4.86 earnings per share for the current year.

Radian Group Dividend Announcement

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

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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