Invesco Ltd. Cuts Stock Holdings in Radian Group Inc. $RDN

Key Points

• Invesco Ltd. reduced its stake in Radian Group Inc. by 45.4% during the 1st quarter, now holding approximately $23.94 million worth of shares.
• Recent analyst reports have downgraded Radian Group's rating, with a consensus target price of $37.00 and a current average rating of "Hold".
• The company announced a quarterly dividend of $0.255 per share and has also authorized a stock buyback program worth $750 million.

Invesco Ltd. cut its stake in Radian Group Inc. (NYSE:RDN - Free Report) by 45.4% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 723,901 shares of the insurance provider's stock after selling 602,109 shares during the period. Invesco Ltd. owned approximately 0.54% of Radian Group worth $23,939,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors have also made changes to their positions in the company. Covestor Ltd grew its position in shares of 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 purchasing an additional 576 shares in the last quarter. US Bancorp DE grew its position in shares of 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 purchasing an additional 735 shares in the last quarter. GAMMA Investing LLC lifted its holdings 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 acquiring an additional 900 shares during the last quarter. Quantinno Capital Management LP lifted its holdings 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 acquiring an additional 768 shares during the last quarter. Finally, Cerity Partners LLC lifted its holdings in Radian Group by 27.8% in the first quarter. Cerity Partners LLC now owns 11,324 shares of the insurance provider's stock valued at $374,000 after acquiring an additional 2,465 shares during the last quarter. 95.33% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Radian Group

In other Radian Group news, Director Howard Bernard Culang sold 8,773 shares of the company's stock in a transaction on Friday, June 6th. The stock was sold at an average price of $33.37, for a total transaction of $292,755.01. Following the transaction, the director directly owned 8,050 shares in the company, valued at $268,628.50. This represents a 52.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Edward J. Hoffman sold 20,000 shares of the company's stock in a transaction on 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 owned 161,586 shares in the company, valued at $5,817,096. This trade represents a 11.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 86,378 shares of company stock valued at $2,944,414 over the last ninety days. 2.16% of the stock is owned by insiders.

Radian Group Trading Down 0.2%

NYSE:RDN traded down $0.09 during trading hours on Tuesday, reaching $34.71. 937,642 shares of the stock were exchanged, compared to its average volume of 926,129. 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 business has a 50-day moving average of $34.63 and a two-hundred day moving average of $33.39. Radian Group Inc. has a twelve month low of $29.32 and a twelve month high of $36.99. The company has a market capitalization of $4.70 billion, a price-to-earnings ratio of 8.74 and a beta of 0.74.

Radian Group (NYSE:RDN - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The insurance provider reported $1.01 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 company had revenue of $318.00 million for the quarter, compared to analysts' expectations of $321.97 million. During the same period in the prior year, the firm earned $0.98 earnings per share. The firm's revenue was down .9% compared to the same quarter last year. On average, equities analysts predict that Radian Group Inc. will post 3.79 EPS for the current year.

Radian Group announced that its board has authorized a share repurchase 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 reacquire up to 16.9% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's management believes its shares are 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 paid a dividend of $0.255 per share. 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 dividend payout ratio is 25.69%.

Analysts Set New Price Targets

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