Entropy Technologies LP Makes New $1.06 Million Investment in Radian Group Inc. (NYSE:RDN)

Key Points

• Entropy Technologies LP has acquired a new stake in Radian Group Inc., purchasing 31,988 shares valued at approximately $1.06 million.
• Radian Group recently reported $1.01 earnings per share (EPS) for the last quarter, exceeding analysts' expectations of $0.93 but showing a slight decline in revenue year-over-year.
• The company announced a $750 million share repurchase plan, indicating that its board believes its stock is undervalued.

Entropy Technologies LP purchased a new stake in Radian Group Inc. (NYSE:RDN - Free Report) during the first quarter, according to the company in its most recent filing with the SEC. The firm purchased 31,988 shares of the insurance provider's stock, valued at approximately $1,058,000.

A number of other hedge funds also recently made changes to their positions in RDN. LPL Financial LLC boosted its holdings in shares of Radian Group by 177.6% in the 4th quarter. LPL Financial LLC now owns 27,320 shares of the insurance provider's stock valued at $867,000 after purchasing an additional 17,477 shares during the last quarter. Bank of Montreal Can boosted its holdings in shares of Radian Group by 13.1% in the 4th quarter. Bank of Montreal Can now owns 21,211 shares of the insurance provider's stock valued at $673,000 after purchasing an additional 2,457 shares during the last quarter. Invesco Ltd. boosted its holdings in shares of Radian Group by 19.2% in the 4th quarter. Invesco Ltd. now owns 1,326,010 shares of the insurance provider's stock valued at $42,061,000 after purchasing an additional 214,036 shares during the last quarter. Raymond James Financial Inc. acquired a new position in shares of Radian Group in the 4th quarter valued at $4,872,000. Finally, Covestor Ltd raised its stake in shares of 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 acquiring an additional 355 shares during the period. Institutional investors and hedge funds own 95.33% of the company's stock.

Insider Activity at Radian Group

In related news, EVP Edward J. Hoffman sold 20,000 shares of the business's stock in a transaction that occurred on Monday, June 23rd. The shares were sold at an average price of $36.00, for a total value of $720,000.00. Following the sale, the executive vice president directly owned 161,586 shares in the company, valued at $5,817,096. The trade was a 11.01% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Howard Bernard Culang sold 8,773 shares of the business's stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $33.37, for a total transaction of $292,755.01. Following the completion of the sale, the director owned 8,050 shares in the company, valued at $268,628.50. The trade was a 52.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 86,378 shares of company stock worth $2,944,414 in the last three months. Insiders own 2.01% of the company's stock.

Analysts Set New Price Targets

RDN has been the topic of a number of research reports. Keefe, Bruyette & Woods downgraded shares of Radian Group from a "moderate buy" rating to a "hold" rating and set a $38.00 target price on the stock. in a research note on Monday, July 7th. Barclays lifted 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. UBS Group reissued a "neutral" rating and set a $38.00 price objective (up from $36.00) on shares of Radian Group in a report on Monday, July 14th. Finally, Compass Point lowered shares of Radian Group from a "strong-buy" rating to a "hold" rating in a report on Friday, May 23rd.

Radian Group Stock Performance

Shares of NYSE RDN traded down $0.06 during midday trading on Thursday, hitting $35.17. The company's stock had a trading volume of 785,307 shares, compared to its average volume of 1,482,968. The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.68 and a current ratio of 1.68. The firm's fifty day moving average price is $34.47 and its 200-day moving average price is $33.35. The firm has a market cap of $4.76 billion, a P/E ratio of 8.86 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.

Radian Group (NYSE:RDN - Get Free Report) last posted its earnings results on Wednesday, July 30th. The insurance provider reported $1.01 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.93 by $0.08. Radian Group had a net margin of 45.62% and a return on equity of 13.25%. The firm had revenue of $318.00 million during the quarter, compared to analyst estimates of $321.97 million. During the same period in the previous year, the business posted $0.98 EPS. Radian Group's revenue was down .9% on a year-over-year basis. On average, sell-side analysts forecast that Radian Group Inc. will post 3.79 EPS for the current fiscal year.

Radian Group declared that its Board of Directors has approved a share buyback plan on Wednesday, May 21st that authorizes the company to buyback $750.00 million in outstanding shares. This buyback authorization authorizes the insurance provider to repurchase up to 16.9% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Radian Group Dividend Announcement

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 given a dividend of $0.255 per share. This represents a $1.02 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date is Monday, August 25th. Radian Group's payout ratio is 25.69%.

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.