Hotchkis & Wiley Capital Management LLC Has $12.72 Million Holdings in Radian Group Inc. $RDN

Key Points

• Hotchkis & Wiley Capital Management LLC reduced its holdings in Radian Group Inc. by 2.1%, owning approximately 384,630 shares worth $12.72 million by the end of the first quarter.
• Radian Group's recent earnings report showed an EPS of $1.01, exceeding the consensus estimate by $0.08, but revenue was down 0.9% year-over-year.
• The company also announced a quarterly dividend of $0.255, representing an annualized yield of 2.9%, and approved a share buyback plan of up to $750 million, indicating confidence in its stock's valuation.

Hotchkis & Wiley Capital Management LLC decreased its stake in shares of Radian Group Inc. (NYSE:RDN - Free Report) by 2.1% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 384,630 shares of the insurance provider's stock after selling 8,230 shares during the period. Hotchkis & Wiley Capital Management LLC owned 0.29% of Radian Group worth $12,720,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Covestor Ltd lifted its position in Radian Group by 42.6% during the 1st quarter. Covestor Ltd now owns 1,927 shares of the insurance provider's stock worth $64,000 after buying an additional 576 shares in the last quarter. US Bancorp DE lifted its position in Radian Group by 22.7% during the 1st quarter. US Bancorp DE now owns 3,972 shares of the insurance provider's stock valued at $131,000 after purchasing an additional 735 shares during the period. GAMMA Investing LLC lifted its position in Radian Group by 13.9% during the 1st quarter. GAMMA Investing LLC now owns 7,363 shares of the insurance provider's stock valued at $243,000 after purchasing an additional 900 shares during the period. Quantinno Capital Management LP lifted its position in Radian Group by 9.8% during the 4th quarter. Quantinno Capital Management LP now owns 8,629 shares of the insurance provider's stock valued at $274,000 after purchasing an additional 768 shares during the period. Finally, Ground Swell Capital LLC acquired a new position in Radian Group during the 1st quarter valued at about $290,000. Institutional investors and hedge funds own 95.33% of the company's stock.

Insider Activity

In other Radian Group news, EVP Eric Ray sold 30,000 shares of the company's stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $33.30, for a total transaction of $999,000.00. Following the completion of the transaction, the executive vice president owned 13,957 shares of the company's stock, valued at $464,768.10. This represents a 68.25% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Lisa Mumford sold 2,500 shares of the company's stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $33.45, for a total value of $83,625.00. Following the transaction, the director directly owned 22,329 shares of the company's stock, valued at approximately $746,905.05. This trade represents a 10.07% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 86,378 shares of company stock worth $2,944,414. 2.16% of the stock is currently owned by insiders.

Radian Group Stock Up 0.7%

NYSE RDN traded up $0.26 during trading hours on Wednesday, reaching $34.98. 557,950 shares of the company's stock were exchanged, compared to its average volume of 1,436,964. The company's 50-day moving average is $34.64 and its two-hundred day moving average is $33.40. Radian Group Inc. has a one year low of $29.32 and a one year high of $36.99. 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 company has a market capitalization of $4.74 billion, a price-to-earnings ratio of 8.81 and a beta of 0.74.

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, topping analysts' consensus estimates of $0.93 by $0.08. Radian Group had a return on equity of 13.25% and a net margin of 45.62%.The business had revenue of $318.00 million during the quarter, compared to analysts' expectations of $321.97 million. During the same period in the prior year, the business earned $0.98 EPS. Radian Group's revenue for the quarter was down .9% compared to the same quarter last year. On average, analysts forecast that Radian Group Inc. will post 3.79 EPS for the current fiscal year.

Radian Group declared that its board has authorized a share repurchase program on Wednesday, May 21st that permits the company to buyback $750.00 million in shares. This buyback authorization permits the insurance provider to buy up to 16.9% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Radian Group Dividend Announcement

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

Analysts Set New Price Targets

A number of research analysts have issued reports on the stock. Compass Point downgraded shares of Radian Group from a "strong-buy" rating to a "hold" rating in a research report 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 target price on the stock. in a research report on Monday, July 7th. UBS Group restated a "neutral" rating and set a $38.00 target price (up from $36.00) on shares of Radian Group in a research report on Monday, July 14th. Finally, Barclays upped their target price on shares of Radian Group from $34.00 to $35.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 8th. Four investment analysts have rated the stock with a Hold rating, According to data from MarketBeat, Radian Group has a consensus rating of "Hold" and a consensus target price of $37.00.

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.