Jacobs Levy Equity Management Inc. Makes New $2.96 Million Investment in Radian Group Inc. $RDN

Key Points

• Jacobs Levy Equity Management Inc. has invested approximately $2.96 million in Radian Group Inc., purchasing 89,629 shares in the first quarter.
• Radian Group recently reported an EPS of $1.01 for the last quarter, exceeding analyst estimates, with a net margin of 45.62%.
• The company has announced a quarterly dividend of $0.255 per share, leading to an annualized dividend yield of 2.9%.

Jacobs Levy Equity Management Inc. purchased a new stake in shares of Radian Group Inc. (NYSE:RDN - Free Report) in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 89,629 shares of the insurance provider's stock, valued at approximately $2,964,000. Jacobs Levy Equity Management Inc. owned 0.07% of Radian Group at the end of the most recent reporting period.

A number of other institutional investors have also made changes to their positions in the business. Federated Hermes Inc. boosted its stake in Radian Group by 11.8% during the 1st quarter. Federated Hermes Inc. now owns 110,772 shares of the insurance provider's stock valued at $3,663,000 after purchasing an additional 11,648 shares during the period. Natixis Advisors LLC lifted its holdings in shares of Radian Group by 3.7% during the first quarter. Natixis Advisors LLC now owns 290,314 shares of the insurance provider's stock worth $9,601,000 after buying an additional 10,368 shares during the last quarter. Jefferies Financial Group Inc. lifted its holdings in shares of Radian Group by 169.5% during the first quarter. Jefferies Financial Group Inc. now owns 104,717 shares of the insurance provider's stock worth $3,463,000 after buying an additional 65,867 shares during the last quarter. Teacher Retirement System of Texas boosted its position in shares of Radian Group by 16.4% in the first quarter. Teacher Retirement System of Texas now owns 39,532 shares of the insurance provider's stock valued at $1,307,000 after acquiring an additional 5,570 shares during the period. Finally, Allspring Global Investments Holdings LLC grew its stake in shares of Radian Group by 54.0% in the first quarter. Allspring Global Investments Holdings LLC now owns 14,780 shares of the insurance provider's stock worth $489,000 after acquiring an additional 5,182 shares during the last quarter. 95.33% of the stock is currently owned by institutional investors.

Radian Group Price Performance

Radian Group stock opened at $34.81 on Wednesday. Radian Group Inc. has a 1 year low of $29.32 and a 1 year 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. The firm has a market capitalization of $4.71 billion, a P/E ratio of 8.77 and a beta of 0.75. The business has a 50-day moving average of $34.48 and a 200-day moving average of $33.56.

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

Radian Group Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 9th. Shareholders of record on Monday, August 25th were issued a dividend of $0.255 per share. This represents a $1.02 annualized dividend and a yield of 2.9%. The ex-dividend date was Monday, August 25th. Radian Group's dividend payout ratio (DPR) is 25.69%.

Radian Group declared that its board has authorized a stock 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 repurchase up to 16.9% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board of directors believes its shares are undervalued.

Analyst Upgrades and Downgrades

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

Insider Activity at Radian Group

In related news, EVP Edward J. Hoffman sold 20,000 shares of the firm's stock in a transaction 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 sale, the executive vice president directly 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 sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 2.16% of the stock is currently owned by insiders.

Radian Group 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.

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