Radian Group Inc. $RDN Shares Sold by Hotchkis & Wiley Capital Management LLC

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 position in Radian Group Inc. (NYSE:RDN - Free Report) by 2.1% in the 1st quarter, according to its most recent Form 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 quarter. Hotchkis & Wiley Capital Management LLC owned 0.29% of Radian Group worth $12,720,000 at the end of the most recent quarter.

Several other large investors also recently bought and sold shares of RDN. Raymond James Financial Inc. acquired a new stake in Radian Group in the fourth quarter valued at approximately $4,872,000. Mariner LLC grew its position in Radian Group by 14.8% in the fourth quarter. Mariner LLC now owns 30,724 shares of the insurance provider's stock valued at $975,000 after acquiring an additional 3,971 shares in the last quarter. MetLife Investment Management LLC grew its position in Radian Group by 6.1% in the fourth quarter. MetLife Investment Management LLC now owns 91,415 shares of the insurance provider's stock valued at $2,900,000 after acquiring an additional 5,253 shares in the last quarter. Price T Rowe Associates Inc. MD grew its stake in Radian Group by 10.1% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 111,498 shares of the insurance provider's stock valued at $3,537,000 after purchasing an additional 10,230 shares in the last quarter. Finally, Susquehanna Fundamental Investments LLC acquired a new stake in Radian Group during the 4th quarter valued at approximately $1,144,000. Institutional investors and hedge funds own 95.33% of the company's stock.

Insider Buying and Selling

In other Radian Group news, Director Howard Bernard Culang sold 8,773 shares of the firm's stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $33.37, for a total value of $292,755.01. Following the sale, the director owned 8,050 shares in the company, valued at approximately $268,628.50. This trade represents a 52.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Edward J. Hoffman sold 20,000 shares of the firm'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 transaction of $720,000.00. Following the completion of the sale, the executive vice president owned 161,586 shares in the company, valued at $5,817,096. The trade was a 11.01% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 86,378 shares of company stock valued at $2,944,414 over the last 90 days. 2.01% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on RDN shares. Barclays raised their price objective 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. UBS Group restated a "neutral" rating and set a $38.00 price objective (up previously from $36.00) on shares of Radian Group in a research note 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. Finally, Keefe, Bruyette & Woods lowered Radian Group from a "moderate buy" rating to a "hold" rating and set a $38.00 price objective for the company. in a research note on Monday, July 7th. Four analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $37.00.

Radian Group Stock Performance

RDN stock traded up $0.17 during midday trading on Friday, reaching $34.83. The company had a trading volume of 137,922 shares, compared to its average volume of 1,424,167. 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 stock has a 50 day moving average price of $34.64 and a 200 day moving average price of $33.42. Radian Group Inc. has a fifty-two week low of $29.32 and a fifty-two week high of $36.99. The firm has a market capitalization of $4.72 billion, a PE ratio of 8.77 and a beta of 0.74.

Radian Group (NYSE:RDN - Get Free Report) last issued its earnings results 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 return on equity of 13.25% and a net margin of 45.62%.The company had revenue of $318.00 million during the quarter, compared to the consensus estimate of $321.97 million. During the same period in the previous year, the firm posted $0.98 earnings per share. Radian Group's quarterly revenue was down .9% compared to the same quarter last year. Analysts anticipate that Radian Group Inc. will post 3.79 earnings per share for the current year.

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

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

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.