Dimensional Fund Advisors LP Trims Stock Position in Radian Group Inc. $RDN

Key Points

• Dimensional Fund Advisors LP reduced its stake in Radian Group Inc. by 1.4%, now holding about 5.3 million shares valued at approximately $175.4 million.
• Multiple significant investors have altered their positions, with Charles Schwab increasing its holdings by 4.0%, now owning over 6.3 million shares worth about $209.7 million.
• Radian Group announced a $750 million share buyback plan, suggesting the board believes the stock is undervalued, with a quarterly dividend of $0.255 scheduled for payment in September.

Dimensional Fund Advisors LP reduced its position in Radian Group Inc. (NYSE:RDN - Free Report) by 1.4% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 5,303,808 shares of the insurance provider's stock after selling 77,492 shares during the period. Dimensional Fund Advisors LP owned about 3.95% of Radian Group worth $175,393,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also recently added to or reduced their stakes in RDN. Covestor Ltd increased its holdings in Radian Group by 42.6% in the first quarter. Covestor Ltd now owns 1,927 shares of the insurance provider's stock valued at $64,000 after buying an additional 576 shares in the last quarter. US Bancorp DE grew its position in shares of Radian Group by 22.7% during the 1st quarter. US Bancorp DE now owns 3,972 shares of the insurance provider's stock valued at $131,000 after acquiring an additional 735 shares during the period. GAMMA Investing LLC increased 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 purchasing an additional 900 shares in the last quarter. Quantinno Capital Management LP increased 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 purchasing an additional 768 shares in the last quarter. Finally, Ground Swell Capital LLC acquired a new position in Radian Group in the 1st quarter worth about $290,000. 95.33% of the stock is owned by hedge funds and other institutional investors.

Radian Group Price Performance

Shares of NYSE RDN traded down $0.68 during mid-day trading on Monday, reaching $34.80. The company's stock had a trading volume of 587,179 shares, compared to its average volume of 967,530. The stock has a market capitalization of $4.71 billion, a P/E ratio of 8.77 and a beta of 0.74. Radian Group Inc. has a 1-year low of $29.32 and a 1-year high of $36.99. The stock has a 50-day moving average of $34.62 and a two-hundred day moving average of $33.38. The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.68 and a current ratio of 1.68.

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

Radian Group announced that its board has initiated a stock buyback program on Wednesday, May 21st that permits the company to buyback $750.00 million in shares. This buyback authorization permits the insurance provider to purchase up to 16.9% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management 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. Investors of record on Monday, August 25th will be issued a $0.255 dividend. This represents a $1.02 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend is Monday, August 25th. Radian Group's dividend payout ratio (DPR) is currently 25.69%.

Insider Activity

In other Radian Group news, EVP Eric Ray sold 30,000 shares of the business's stock in a transaction on Friday, June 6th. The stock was sold at an average price of $33.30, for a total transaction of $999,000.00. Following the transaction, the executive vice president owned 13,957 shares of the company's stock, valued at approximately $464,768.10. The trade was a 68.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Lisa Mumford sold 2,500 shares of the company's stock in a transaction on Friday, June 6th. The shares were sold at an average price of $33.45, for a total value of $83,625.00. Following the completion of the sale, the director owned 22,329 shares of the company's stock, valued at approximately $746,905.05. The trade was a 10.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 86,378 shares of company stock valued at $2,944,414 in the last 90 days. 2.16% of the stock is owned by insiders.

Analysts Set New Price Targets

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

Radian Group Company Profile

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.