Fuller & Thaler Asset Management Inc. Lowers Stock Holdings 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. reduced its stake in Radian Group Inc. (NYSE:RDN - Free Report) by 0.9% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 2,564,842 shares of the insurance provider's stock after selling 23,180 shares during the period. Fuller & Thaler Asset Management Inc. owned approximately 1.91% of Radian Group worth $84,819,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Covestor Ltd raised its stake in Radian Group by 42.6% in the first quarter. Covestor Ltd now owns 1,927 shares of the insurance provider's stock valued at $64,000 after buying an additional 576 shares in the last quarter. US Bancorp DE raised its stake in Radian Group by 22.7% in the first 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 in the last quarter. GAMMA Investing LLC raised its stake in Radian Group by 13.9% in the first 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 in the last quarter. Quantinno Capital Management LP raised its stake in Radian Group by 9.8% in the fourth 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 in the last quarter. Finally, Ground Swell Capital LLC acquired a new stake in Radian Group in the first quarter valued at $290,000. 95.33% of the stock is currently owned by institutional investors and hedge funds.

Radian Group Stock Performance

NYSE:RDN traded up $0.8060 during trading hours on Friday, reaching $35.4560. 695,372 shares of the company's stock were exchanged, compared to its average volume of 967,530. Radian Group Inc. has a 1-year low of $29.32 and a 1-year high of $36.99. The company has a quick ratio of 1.68, a current ratio of 1.68 and a debt-to-equity ratio of 0.54. The firm has a market capitalization of $4.80 billion, a price-to-earnings ratio of 8.93 and a beta of 0.74. The company has a 50-day moving average of $34.61 and a 200 day moving average of $33.37.

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, 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 company had revenue of $318.00 million for the quarter, compared to analyst estimates of $321.97 million. During the same period in the previous year, the business posted $0.98 earnings per share. Radian Group's quarterly revenue was down .9% on a year-over-year basis. Research analysts anticipate that Radian Group Inc. will post 3.79 EPS for the current year.

Radian Group declared that its board has initiated a share buyback program on Wednesday, May 21st that authorizes the company to buyback $750.00 million in outstanding shares. This buyback authorization authorizes the insurance provider to buy up to 16.9% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's leadership 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. Investors of record on Monday, August 25th will be issued a dividend of $0.255 per share. The ex-dividend date of this dividend is Monday, August 25th. 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 currently 25.69%.

Insider Activity

In related news, Director Noel Joseph Spiegel sold 5,105 shares of the firm's 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 transaction, the director 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 transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP Edward J. Hoffman sold 20,000 shares of the firm's stock in a transaction dated Monday, June 23rd. The stock was sold at an average price of $36.00, for a total value of $720,000.00. Following the transaction, the executive vice president directly owned 161,586 shares in the company, valued at approximately $5,817,096. This represents a 11.01% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 86,378 shares of company stock valued at $2,944,414. Insiders own 2.16% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have weighed in on RDN. Barclays raised their price target on Radian Group from $34.00 to $35.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 8th. Compass Point cut Radian Group from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 23rd. Keefe, Bruyette & Woods cut Radian Group from a "moderate buy" rating to a "hold" rating and set a $38.00 target price on the stock. in a research report on Monday, July 7th. Finally, UBS Group reissued a "neutral" rating and issued a $38.00 target price (up from $36.00) on shares of Radian Group in a report on Monday, July 14th. Four research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $37.00.

Radian Group Company 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.