Engineers Gate Manager LP Reduces Position in Radian Group Inc. $RDN

Key Points

• Engineers Gate Manager LP cut its Radian Group position by 57.6% in the second quarter, selling 58,380 shares and retaining 42,930 shares valued at approximately $1.62 million.
• Institutional ownership remains high at 95.33%, with several funds—including Deutsche Bank, Corient Private Wealth, and GSA Capital—establishing or increasing positions.
• Radian reported quarterly revenue of $574.96 million, up 92.3% year over year, but earnings per share of $1.14 fell short of the $1.34 consensus estimate. Analysts maintain a “Moderate Buy” consensus with a $42.17 target price, while the company pays a $0.255 quarterly dividend.

Engineers Gate Manager LP decreased its position in Radian Group Inc. (NYSE:RDN - Free Report) by 57.6% during the 2nd quarter, according to its most recent disclosure with the SEC. The fund owned 42,930 shares of the insurance provider's stock after selling 58,380 shares during the period. Engineers Gate Manager LP's holdings in Radian Group were worth $1,617,000 as of its most recent SEC filing.

Other hedge funds also recently made changes to their positions in the company. Deutsche Bank AG bought a new position in Radian Group during the 2nd quarter valued at approximately $13,071,000. Corient Private Wealth LP bought a new stake in shares of Radian Group in the 2nd quarter worth approximately $1,099,000. Fifth Third Bancorp increased its stake in shares of Radian Group by 17,199.1% during the first quarter. Fifth Third Bancorp now owns 156,903 shares of the insurance provider's stock valued at $5,190,000 after buying an additional 155,996 shares during the period. GSA Capital Partners LLP purchased a new position in shares of Radian Group during the second quarter valued at approximately $2,801,000. Finally, Jefferies Financial Group Inc. raised its holdings in shares of Radian Group by 331.2% during the fourth quarter. Jefferies Financial Group Inc. now owns 94,867 shares of the insurance provider's stock valued at $3,414,000 after acquiring an additional 72,867 shares in the last quarter. 95.33% of the stock is owned by hedge funds and other institutional investors.

Radian Group Stock Performance

Shares of Radian Group stock opened at $35.26 on Thursday. The firm's 50-day moving average is $37.32 and its 200 day moving average is $35.87. Radian Group Inc. has a 1 year low of $31.50 and a 1 year high of $41.05. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.60 and a quick ratio of 0.60. The stock has a market cap of $4.66 billion, a price-to-earnings ratio of 9.06, a PEG ratio of 0.86 and a beta of 0.70.

Radian Group (NYSE:RDN - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The insurance provider reported $1.14 earnings per share for the quarter, missing the consensus estimate of $1.34 by ($0.20). Radian Group had a net margin of 32.60% and a return on equity of 13.65%. The firm had revenue of $574.96 million for the quarter, compared to the consensus estimate of $556.55 million. During the same period last year, the business earned $1.01 EPS. Radian Group's revenue was up 92.3% on a year-over-year basis. Sell-side analysts anticipate that Radian Group Inc. will post 4.86 EPS for the current fiscal year.

Radian Group Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th were paid a dividend of $0.255 per share. The ex-dividend date was Monday, August 24th. This represents a $1.02 annualized dividend and a yield of 2.9%. Radian Group's dividend payout ratio is currently 26.22%.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the stock. Weiss Ratings cut shares of Radian Group from a "buy (b+)" rating to a "buy (b)" rating in a research report on Friday, September 11th. Wall Street Zen cut Radian Group from a "buy" rating to a "hold" rating in a research report on Sunday, August 9th. Royal Bank Of Canada initiated coverage on Radian Group in a report on Friday, May 22nd. They set an "outperform" rating and a $47.00 target price on the stock. Barclays decreased their target price on 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. Finally, Keefe, Bruyette & Woods reduced 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. Five equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $42.17.

Insider Activity at Radian Group

In other Radian Group news, EVP Meghan Bartholomew sold 7,812 shares of the business's stock in a transaction on Monday, September 14th. The shares were sold at an average price of $35.94, for a total transaction of $280,763.28. Following the completion of the sale, the executive vice president directly owned 39,203 shares in the company, valued at approximately $1,408,955.82. The trade was a 16.62% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.03% of the stock is owned by corporate insiders.

Radian Group Profile

Radian Group Inc is a Philadelphia-based provider of private mortgage insurance and related risk-management services. Through its principal subsidiary, Radian Guaranty Inc, the company helps lenders manage credit risk on residential mortgages, primarily by insuring loans that have relatively low down payments. Mortgage insurance can enable qualified borrowers to obtain home financing without making a traditional 20% down payment.

Radian's mortgage insurance products are designed for lenders, mortgage originators and investors in the United States.

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