Prana Capital Management LP Invests $1.98 Million in Radian Group Inc. $RDN

Key Points

• Prana Capital bought a new stake of 54,632 shares in Radian Group (RDN) during the third quarter, valued at approximately $1.98 million.
• Radian reported quarterly EPS of $1.16 (beating estimates by $0.05) with strong margins (ROE 13.07%, net margin 46.99%), and analysts' consensus is a "Moderate Buy" with an average price target of $40.60.
• The company pays a quarterly dividend of $0.255 (annualized yield ~3.1%) and the stock trades in the low $30s with a market cap of about $4.5 billion.

Prana Capital Management LP bought a new stake in Radian Group Inc. (NYSE:RDN - Free Report) during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 54,632 shares of the insurance provider's stock, valued at approximately $1,979,000.

Several other hedge funds have also recently added to or reduced their stakes in RDN. Jones Financial Companies Lllp boosted its holdings in Radian Group by 14.8% during the first quarter. Jones Financial Companies Lllp now owns 2,764 shares of the insurance provider's stock valued at $91,000 after purchasing an additional 357 shares in the last quarter. Geneos Wealth Management Inc. raised its holdings in shares of Radian Group by 191.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 871 shares of the insurance provider's stock worth $29,000 after buying an additional 572 shares in the last quarter. Allworth Financial LP lifted its position in shares of Radian Group by 1,049.7% during the 2nd quarter. Allworth Financial LP now owns 1,897 shares of the insurance provider's stock worth $68,000 after buying an additional 1,732 shares during the period. Police & Firemen s Retirement System of New Jersey lifted its position in shares of Radian Group by 2.0% during the 2nd quarter. Police & Firemen s Retirement System of New Jersey now owns 32,380 shares of the insurance provider's stock worth $1,166,000 after buying an additional 626 shares during the period. Finally, Creative Planning boosted its stake in Radian Group by 18.0% in the 2nd quarter. Creative Planning now owns 15,634 shares of the insurance provider's stock valued at $563,000 after buying an additional 2,381 shares in the last quarter. Institutional investors and hedge funds own 95.33% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on RDN shares. Roth Mkm reiterated a "buy" rating and issued a $45.00 price target on shares of Radian Group in a research report on Friday, January 2nd. Keefe, Bruyette & Woods upgraded shares of Radian Group from a "market perform" rating to an "outperform" rating and boosted their target price for the company from $41.00 to $42.00 in a research note on Wednesday, February 11th. Zacks Research raised shares of Radian Group from a "hold" rating to a "strong-buy" rating in a report on Friday, February 20th. Weiss Ratings cut shares of Radian Group from a "buy (a-)" rating to a "buy (b+)" rating in a research report on Tuesday, January 13th. Finally, UBS Group cut their price target on shares of Radian Group from $41.00 to $39.00 and set a "neutral" rating for the company in a report on Thursday, March 12th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Radian Group currently has an average rating of "Moderate Buy" and an average target price of $40.60.

Radian Group Trading Up 1.0%

RDN stock opened at $33.09 on Wednesday. The business has a fifty day moving average price of $33.55 and a 200 day moving average price of $34.59. The company has a debt-to-equity ratio of 0.23, a current ratio of 3.40 and a quick ratio of 3.40. Radian Group Inc. has a fifty-two week low of $29.32 and a fifty-two week high of $38.84. The stock has a market capitalization of $4.51 billion, a price-to-earnings ratio of 7.97, a P/E/G ratio of 1.77 and a beta of 0.79.

Radian Group (NYSE:RDN - Get Free Report) last posted its quarterly earnings data on Wednesday, February 18th. The insurance provider reported $1.16 EPS for the quarter, topping analysts' consensus estimates of $1.11 by $0.05. The company had revenue of $300.51 million for the quarter, compared to analyst estimates of $300.45 million. Radian Group had a return on equity of 13.07% and a net margin of 46.99%.The business's revenue was up 2.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.09 earnings per share. Analysts expect that Radian Group Inc. will post 3.79 EPS for the current fiscal year.

Radian Group Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Monday, February 23rd were given a dividend of $0.255 per share. The ex-dividend date was Monday, February 23rd. This represents a $1.02 annualized dividend and a yield of 3.1%. Radian Group's dividend payout ratio is 24.58%.

Radian Group Company Profile

Radian Group Inc NYSE: RDN is a leading provider of private mortgage insurance and related risk management solutions in the United States. Through its primary subsidiary, Radian Guaranty Inc, the company underwrites borrower-paid and lender-paid mortgage insurance that protects lenders and investors from potential losses arising from borrower defaults. Radian's core business focuses on supporting residential mortgage originations and servicing by offering capital-efficient credit protection and credit risk transfer strategies.

Beyond mortgage insurance, Radian offers an array of real estate transaction services under its Radian Title division.

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