Hsbc Holdings PLC Reduces Stake in Radian Group Inc. $RDN

Key Points

• HSBC Holdings PLC has reduced its stake in Radian Group Inc. by 61.5%, resulting in ownership of 24,977 shares after selling 39,864 shares in the first quarter.
• Radian Group's stock performance has been positively noted, with a recent price target adjustment from UBS Group, raising it to $38.00, while currently holding an average price target of $37.00.
• The company announced a quarterly dividend of $0.255 per share, reflecting an annual yield of 2.9%, with a payout ratio of 25.69%.

Hsbc Holdings PLC lowered its holdings in Radian Group Inc. (NYSE:RDN - Free Report) by 61.5% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 24,977 shares of the insurance provider's stock after selling 39,864 shares during the quarter. Hsbc Holdings PLC's holdings in Radian Group were worth $823,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently modified their holdings of the company. Xponance Inc. raised its holdings in shares of Radian Group by 5.0% in the 1st quarter. Xponance Inc. now owns 11,379 shares of the insurance provider's stock valued at $376,000 after buying an additional 538 shares during the period. Covestor Ltd raised its holdings in shares of Radian Group by 42.6% in the 1st quarter. Covestor Ltd now owns 1,927 shares of the insurance provider's stock valued at $64,000 after buying an additional 576 shares during the period. US Bancorp DE raised its holdings in shares of Radian Group by 22.7% in the 1st 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 during the period. Quantinno Capital Management LP raised its holdings in shares of Radian Group by 9.8% in the 4th 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 during the period. Finally, Private Advisor Group LLC raised its holdings in shares of Radian Group by 2.0% in the 1st quarter. Private Advisor Group LLC now owns 45,563 shares of the insurance provider's stock valued at $1,507,000 after buying an additional 893 shares during the period. Hedge funds and other institutional investors own 95.33% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the company. UBS Group reiterated a "neutral" rating and issued a $38.00 price objective (up previously from $36.00) on shares of Radian Group in a report on Monday, July 14th. Compass Point downgraded Radian Group from a "strong-buy" rating to a "hold" rating in a report 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 for the company. in a research note on Monday, July 7th. Finally, Barclays boosted their target price on Radian Group from $34.00 to $35.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 8th. Four investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $37.00.

Insider Buying and Selling at Radian Group

In other news, Director Noel Joseph Spiegel sold 5,105 shares of the company'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 completion of the transaction, the director directly owned 20,008 shares of the company's stock, valued at approximately $673,469.28. This represents a 20.33% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Howard Bernard Culang sold 8,773 shares of the company's stock in a transaction dated Friday, June 6th. The shares were sold at an average price of $33.37, for a total value of $292,755.01. Following the completion of the sale, the director directly owned 8,050 shares of the company's stock, valued at approximately $268,628.50. This trade represents a 52.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 76,378 shares of company stock worth $2,607,214. Corporate insiders own 2.16% of the company's stock.

Radian Group Stock Up 0.8%

RDN traded up $0.27 on Wednesday, hitting $34.94. 497,427 shares of the company were exchanged, compared to its average volume of 1,420,713. The firm has a 50-day moving average price of $34.57 and a two-hundred day moving average price of $33.47. The company has a market cap of $4.73 billion, a price-to-earnings ratio of 8.80 and a beta of 0.75. Radian Group Inc. has a twelve month low of $29.32 and a twelve month high of $36.99. The company has a current ratio of 1.68, a quick ratio of 1.68 and a debt-to-equity ratio of 0.54.

Radian Group (NYSE:RDN - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The insurance provider reported $1.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.93 by $0.08. The business had revenue of $318.00 million during the quarter, compared to analysts' expectations of $321.97 million. Radian Group had a return on equity of 13.25% and a net margin of 45.62%.The business's quarterly revenue was down .9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.98 EPS. On average, equities analysts predict that Radian Group Inc. will post 3.79 earnings per share for the current year.

Radian Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 9th. Stockholders of record on Monday, August 25th will be given a dividend of $0.255 per share. This represents a $1.02 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend is Monday, August 25th. Radian Group's dividend payout ratio is currently 25.69%.

Radian Group announced that its board has approved a stock buyback plan on Wednesday, May 21st that authorizes the company to buyback $750.00 million in shares. This buyback authorization authorizes the insurance provider to purchase up to 16.9% of its shares through open market purchases. Shares buyback plans are often an indication that the company's leadership believes its shares are undervalued.

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.