Donald Smith & CO. Inc. Raises Stock Holdings in Radian Group Inc. $RDN

Key Points

• Donald Smith & CO. boosted its Radian Group stake by 43.7% in the fourth quarter, adding 916,003 shares and bringing its total to 3,012,255 shares worth about $108.4 million.
• Radian Group reported strong quarterly results, with EPS of $1.27 topping estimates and revenue of $466.34 million beating forecasts, while revenue rose 46.6% year over year.
• The company also announced a quarterly dividend of $0.255 per share, equal to an annualized yield of about 2.9%, and Wall Street currently rates the stock a Moderate Buy with a consensus target price of $42.67.

Donald Smith & CO. Inc. increased its position in Radian Group Inc. (NYSE:RDN - Free Report) by 43.7% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 3,012,255 shares of the insurance provider's stock after acquiring an additional 916,003 shares during the period. Radian Group makes up about 2.0% of Donald Smith & CO. Inc.'s portfolio, making the stock its 21st biggest holding. Donald Smith & CO. Inc. owned about 2.22% of Radian Group worth $108,411,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Northwestern Mutual Wealth Management Co. raised its stake 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 worth $27,000 after acquiring an additional 476 shares during the last quarter. V Square Quantitative Management LLC purchased a new position in Radian Group in the 4th quarter worth $29,000. Bessemer Group Inc. raised its stake in Radian Group by 66.7% in the 3rd quarter. Bessemer Group Inc. now owns 795 shares of the insurance provider's stock worth $29,000 after acquiring an additional 318 shares during the last quarter. Geneos Wealth Management Inc. raised its stake in Radian Group by 191.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 871 shares of the insurance provider's stock worth $29,000 after acquiring an additional 572 shares during the last quarter. Finally, Fifth Third Bancorp raised its stake in Radian Group by 65.8% in the 4th quarter. Fifth Third Bancorp now owns 907 shares of the insurance provider's stock worth $33,000 after acquiring an additional 360 shares during the last quarter. Hedge funds and other institutional investors own 95.33% of the company's stock.

Insider Activity

In other news, Director Margaret Anne Leyden sold 2,070 shares of the firm's stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $34.59, for a total transaction of $71,601.30. Following the sale, the director directly owned 6,864 shares in the company, valued at $237,425.76. This trade represents a 23.17% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Michael S. Weinbach bought 49,513 shares of the company's stock in a transaction dated Tuesday, June 2nd. The shares were acquired at an average price of $34.04 per share, for a total transaction of $1,685,422.52. Following the completion of the transaction, the chief executive officer directly owned 170,000 shares in the company, valued at approximately $5,786,800. This trade represents a 41.09% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders sold 75,516 shares of company stock worth $2,747,576. 2.03% of the stock is currently owned by corporate insiders.

Radian Group Stock Performance

NYSE RDN opened at $34.75 on Thursday. The stock has a 50-day simple moving average of $35.34 and a two-hundred day simple moving average of $34.67. The firm has a market capitalization of $4.62 billion, a P/E ratio of 8.56, a PEG ratio of 0.86 and a beta of 0.73. Radian Group Inc. has a fifty-two week low of $31.50 and a fifty-two week high of $38.84. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.58 and a current ratio of 0.58.

Radian Group (NYSE:RDN - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The insurance provider reported $1.27 earnings per share for the quarter, beating analysts' consensus estimates of $1.17 by $0.10. The business had revenue of $466.34 million during the quarter, compared to analyst estimates of $377.83 million. Radian Group had a return on equity of 13.57% and a net margin of 40.50%.The company's revenue was up 46.6% on a year-over-year basis. During the same quarter last year, the business posted $0.99 EPS. On average, equities analysts forecast that Radian Group Inc. will post 5.17 earnings per share for the current year.

Radian Group Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, June 17th. Stockholders of record on Tuesday, June 2nd will be given a dividend of $0.255 per share. The ex-dividend date is Tuesday, June 2nd. This represents a $1.02 dividend on an annualized basis and a dividend yield of 2.9%. Radian Group's dividend payout ratio (DPR) is 25.12%.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on the company. Royal Bank Of Canada assumed coverage on Radian Group in a research note on Friday, May 22nd. They issued an "outperform" rating and a $47.00 target price for the company. Barclays lifted their price objective on Radian Group from $37.00 to $39.00 and gave the company an "equal weight" rating in a research note on Monday, May 11th. Zacks Research lowered Radian Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 20th. UBS Group reduced their price objective on Radian Group from $41.00 to $39.00 and set a "neutral" rating for the company in a research note on Thursday, March 12th. Finally, Wall Street Zen lowered Radian Group from a "buy" rating to a "hold" rating in a research note on Saturday, June 6th. Five investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $42.67.

Radian Group 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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