Deutsche Bank AG Raises Stock Holdings in Radian Group Inc. (NYSE:RDN)

Key Points

• Deutsche Bank AG significantly increased its holdings in Radian Group Inc. by 161.9%, owning 553,737 shares worth approximately $18.31 million as of the end of the 1st quarter.
• Radian Group reported a quarterly earnings per share of $1.01, exceeding estimates, but its revenue decreased by 0.9% year-over-year.
• The company has authorized a $750 million share buyback plan that enables repurchase of up to 16.9% of its stock, indicating confidence in its valuation.

Deutsche Bank AG boosted its stake in Radian Group Inc. (NYSE:RDN - Free Report) by 161.9% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 553,737 shares of the insurance provider's stock after buying an additional 342,330 shares during the quarter. Deutsche Bank AG owned approximately 0.41% of Radian Group worth $18,312,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also bought and sold shares of the stock. Covestor Ltd grew its stake in shares of Radian Group by 35.6% during the 4th quarter. Covestor Ltd now owns 1,351 shares of the insurance provider's stock worth $43,000 after acquiring an additional 355 shares during the period. Summit Investment Advisors Inc. grew its stake in shares of Radian Group by 3.3% during the 4th quarter. Summit Investment Advisors Inc. now owns 15,854 shares of the insurance provider's stock worth $503,000 after acquiring an additional 502 shares during the period. Xponance Inc. grew its stake in shares of Radian Group by 5.0% during the 1st quarter. Xponance Inc. now owns 11,379 shares of the insurance provider's stock worth $376,000 after acquiring an additional 538 shares during the period. US Bancorp DE boosted its stake in Radian Group by 22.7% in the 1st quarter. US Bancorp DE now owns 3,972 shares of the insurance provider's stock worth $131,000 after purchasing an additional 735 shares during the period. Finally, Quantinno Capital Management LP boosted its stake in Radian Group by 9.8% in the 4th quarter. Quantinno Capital Management LP now owns 8,629 shares of the insurance provider's stock worth $274,000 after purchasing an additional 768 shares during the period. 95.33% of the stock is owned by hedge funds and other institutional investors.

Radian Group Price Performance

Shares of RDN traded down $0.63 during trading hours on Friday, reaching $34.52. 982,337 shares of the company's stock traded hands, compared to its average volume of 1,068,433. The stock has a market cap of $4.68 billion, a PE ratio of 8.70 and a beta of 0.74. 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's 50 day simple moving average is $34.53 and its 200-day simple moving average is $33.35. Radian Group Inc. has a 12 month low of $29.32 and a 12 month high of $36.99.

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

Radian Group declared that its board has initiated a stock buyback plan on Wednesday, May 21st that allows the company to buyback $750.00 million in outstanding shares. This buyback authorization allows the insurance provider to repurchase up to 16.9% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board believes its shares are undervalued.

Radian Group Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 9th. Investors of record on Monday, August 25th will be given a $0.255 dividend. The ex-dividend date is Monday, August 25th. This represents a $1.02 dividend on an annualized basis and a yield of 3.0%. Radian Group's payout ratio is presently 25.69%.

Insider Buying and Selling

In related news, Director Lisa Mumford sold 2,500 shares of the business's stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $33.45, for a total value of $83,625.00. Following the completion of the sale, the director owned 22,329 shares in the company, valued at $746,905.05. The trade was a 10.07% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Howard Bernard Culang sold 8,773 shares of the business's stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $33.37, for a total value of $292,755.01. Following the completion of the sale, the director owned 8,050 shares of the company's stock, valued at $268,628.50. The trade was a 52.15% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 86,378 shares of company stock worth $2,944,414 over the last ninety days. Corporate insiders own 2.01% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have commented on the company. UBS Group restated a "neutral" rating and issued a $38.00 target price (up previously from $36.00) on shares of Radian Group in a research note on Monday, July 14th. Barclays raised 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. Compass Point downgraded Radian Group from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 23rd. Finally, Keefe, Bruyette & Woods downgraded 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.

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.