Donald Smith & CO. Inc. Has $65.94 Million Stock Position in Radian Group Inc. (NYSE:RDN)

Key Points

• Donald Smith & CO. Inc. has decreased its stake in Radian Group Inc. by 30.0%, now holding approximately 1.6% of the company's shares, valued at about $65.9 million.
• Radian Group reported a net margin of 45.62% and earnings per share of $1.01 for the last quarter, surpassing analysts' expectations by $0.08.
• The company has initiated a $750 million share buyback plan, allowing it to repurchase up to 16.9% of its stock, indicating management's belief that its stock is undervalued.

Donald Smith & CO. Inc. lowered its position in shares of Radian Group Inc. (NYSE:RDN - Free Report) by 30.0% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,993,878 shares of the insurance provider's stock after selling 856,048 shares during the quarter. Radian Group accounts for about 1.6% of Donald Smith & CO. Inc.'s holdings, making the stock its 27th largest position. Donald Smith & CO. Inc. owned approximately 1.48% of Radian Group worth $65,938,000 at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. Covestor Ltd increased its stake in Radian Group by 35.6% in the 4th quarter. Covestor Ltd now owns 1,351 shares of the insurance provider's stock valued at $43,000 after buying an additional 355 shares during the period. US Bancorp DE increased its stake in Radian Group by 22.7% in the 1st quarter. US Bancorp DE now owns 3,972 shares of the insurance provider's stock valued at $131,000 after buying an additional 735 shares during the period. GAMMA Investing LLC increased its stake in 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 increased its stake in 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. Finally, Cerity Partners LLC increased its stake in 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. Institutional investors and hedge funds own 95.33% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have weighed in on RDN shares. Compass Point lowered shares of Radian Group from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 23rd. UBS Group reiterated a "neutral" rating and issued a $38.00 price objective (up previously from $36.00) on shares of Radian Group in a research note on Monday, July 14th. Keefe, Bruyette & Woods lowered shares of Radian Group from a "moderate buy" rating to a "hold" rating and set a $38.00 price target on the stock. in a research note on Monday, July 7th. Finally, Barclays increased their price target on shares of Radian Group from $34.00 to $35.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 8th.

Radian Group Stock Performance

Shares of NYSE RDN traded down $0.07 during trading hours on Thursday, hitting $35.15. 342,937 shares of the stock were exchanged, compared to its average volume of 1,479,932. The company has a debt-to-equity ratio of 0.54, a current ratio of 1.68 and a quick ratio of 1.68. The company's 50 day moving average is $34.47 and its 200 day moving average is $33.35. The firm has a market capitalization of $4.76 billion, a P/E ratio of 8.85 and a beta of 0.74. Radian Group Inc. has a one year low of $29.32 and a one year high of $36.99.

Radian Group (NYSE:RDN - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The insurance provider reported $1.01 earnings per share (EPS) for the quarter, topping the consensus estimate 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 net margin of 45.62% and a return on equity of 13.25%. Radian Group's quarterly revenue was down .9% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.98 EPS. On average, research analysts expect that Radian Group Inc. will post 3.79 EPS for the current year.

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 issued a $0.255 dividend. This represents a $1.02 dividend on an annualized basis and a yield of 2.9%. Radian Group's dividend payout ratio (DPR) is presently 25.69%.

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

Insider Transactions at Radian Group

In other news, Director Noel Joseph Spiegel sold 5,105 shares of the firm's stock in a transaction dated Friday, June 6th. The shares were sold at an average price of $33.66, for a total transaction of $171,834.30. Following the completion of the transaction, the director directly owned 20,008 shares of the company's stock, valued at approximately $673,469.28. This trade represents a 20.33% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Eric Ray sold 30,000 shares of the firm's stock in a transaction dated 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 directly owned 13,957 shares of the company's stock, valued at $464,768.10. The trade was a 68.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 86,378 shares of company stock worth $2,944,414. 2.01% of the stock is currently owned by insiders.

Radian Group 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.