Fuller & Thaler Asset Management Inc. Reduces Stock Position in Radian Group Inc. $RDN

Key Points

• Fuller & Thaler Asset Management Inc. reduced its stake in Radian Group Inc. by 0.9%, owning approximately 1.91% of the insurance provider, valued at $84.81 million after selling 23,180 shares.
• Radian Group has authorized a $750 million stock buyback program to repurchase up to 16.9% of its shares, suggesting that the board believes the stock is undervalued.
• The company reported $1.01 earnings per share for the last quarter, surpassing the consensus estimate of $0.93, while total revenue was $318 million compared to estimated revenues of $321.97 million.

Fuller & Thaler Asset Management Inc. cut its stake in shares of Radian Group Inc. (NYSE:RDN - Free Report) by 0.9% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 2,564,842 shares of the insurance provider's stock after selling 23,180 shares during the quarter. Fuller & Thaler Asset Management Inc. owned 1.91% of Radian Group worth $84,819,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also bought and sold shares of RDN. Nuveen LLC bought a new stake in Radian Group in the first quarter valued at approximately $40,749,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in Radian Group by 109.1% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 901,260 shares of the insurance provider's stock valued at $28,588,000 after buying an additional 470,158 shares during the last quarter. Deutsche Bank AG raised its holdings in Radian Group by 161.9% during the 1st quarter. Deutsche Bank AG now owns 553,737 shares of the insurance provider's stock valued at $18,312,000 after buying an additional 342,330 shares during the last quarter. American Century Companies Inc. boosted its position in Radian Group by 9.2% during the 1st quarter. American Century Companies Inc. now owns 3,658,250 shares of the insurance provider's stock valued at $120,978,000 after buying an additional 306,889 shares during the period. Finally, Canada Pension Plan Investment Board bought a new stake in Radian Group in the 4th quarter worth $9,564,000. 95.33% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of analysts have recently weighed in on RDN shares. UBS Group reiterated a "neutral" rating and set a $38.00 target price (up from $36.00) on shares of Radian Group in a report on Monday, July 14th. Compass Point lowered Radian Group from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 23rd. 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 research report on Monday, July 7th. Finally, Barclays upped their price objective on shares of Radian Group from $34.00 to $35.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 8th. Four investment analysts have rated the stock with a Hold rating, According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $37.00.

Insider Transactions at Radian Group

In related news, EVP Edward J. Hoffman sold 20,000 shares of the stock in a transaction dated Monday, June 23rd. The shares were sold at an average price of $36.00, for a total transaction of $720,000.00. Following the sale, the executive vice president directly owned 161,586 shares of the company's stock, valued at approximately $5,817,096. This represents a 11.01% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Noel Joseph Spiegel sold 5,105 shares of Radian Group stock in a transaction dated Friday, June 6th. The stock was 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 $673,469.28. This trade represents a 20.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 86,378 shares of company stock valued at $2,944,414. 2.01% of the stock is currently owned by corporate insiders.

Radian Group Stock Up 2.3%

Radian Group stock traded up $0.8060 on Friday, hitting $35.4560. 695,372 shares of the stock traded hands, compared to its average volume of 978,523. Radian Group Inc. has a 1 year low of $29.32 and a 1 year high of $36.99. The firm has a market cap of $4.80 billion, a P/E ratio of 8.93 and a beta of 0.74. The company has a current ratio of 1.68, a quick ratio of 1.68 and a debt-to-equity ratio of 0.54. The business's fifty day simple moving average is $34.61 and its 200 day simple moving average is $33.38.

Radian Group (NYSE:RDN - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The insurance provider reported $1.01 EPS for the quarter, topping the consensus estimate of $0.93 by $0.08. The business had revenue of $318.00 million for the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.98 earnings per share. As a group, sell-side analysts forecast that Radian Group Inc. will post 3.79 earnings per share for the current year.

Radian Group Dividend Announcement

The business also recently announced 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 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend is Monday, August 25th. Radian Group's payout ratio is 25.69%.

Radian Group announced that its Board of Directors has approved a stock repurchase plan on Wednesday, May 21st that allows the company to buyback $750.00 million in outstanding shares. This buyback authorization allows the insurance provider to repurchase up to 16.9% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.

About Radian Group

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.