Radian Group Inc. $RDN Shares Bought by Aegis Financial Corp

Key Points

• Aegis Financial Corp increased its Radian Group stake by 176.9% in the second quarter, holding 817,512 shares worth approximately $30.8 million. Institutional investors and hedge funds collectively own 95.33% of Radian’s shares.
• Analysts maintain a generally positive view, with Radian carrying a “Moderate Buy” consensus rating and an average price target of $42.17, despite some recent price-target reductions.
• Radian reported quarterly revenue of $574.96 million, up 92.3% year over year, but earnings of $1.14 per share fell short of the $1.34 consensus estimate. The company declared a quarterly dividend of $0.255, representing a 2.8% annualized yield.

Aegis Financial Corp grew its holdings in Radian Group Inc. (NYSE:RDN - Free Report) by 176.9% in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 817,512 shares of the insurance provider's stock after acquiring an additional 522,238 shares during the quarter. Radian Group accounts for approximately 4.9% of Aegis Financial Corp's investment portfolio, making the stock its 6th biggest position. Aegis Financial Corp owned about 0.62% of Radian Group worth $30,796,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also modified their holdings of the business. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Radian Group by 178.9% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 742 shares of the insurance provider's stock worth $27,000 after purchasing an additional 476 shares during the period. Geneos Wealth Management Inc. boosted its stake in shares of Radian Group by 191.3% in the first quarter. Geneos Wealth Management Inc. now owns 871 shares of the insurance provider's stock valued at $29,000 after buying an additional 572 shares during the period. Fifth Third Bancorp grew its position in Radian Group by 65.8% during the fourth quarter. Fifth Third Bancorp now owns 907 shares of the insurance provider's stock worth $33,000 after buying an additional 360 shares in the last quarter. Measured Wealth Private Client Group LLC acquired a new stake in Radian Group during the third quarter worth approximately $34,000. Finally, Global Retirement Partners LLC bought a new position in Radian Group during the 2nd quarter worth $37,000. 95.33% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the company. Wall Street Zen downgraded Radian Group from a "buy" rating to a "hold" rating in a research report on Sunday, August 9th. Weiss Ratings raised Radian Group from a "buy (b)" rating to a "buy (b+)" rating in a research note on Tuesday, August 11th. Barclays cut their price objective on shares of Radian Group from $39.00 to $35.00 and set an "equal weight" rating for the company in a research report on Monday, August 10th. Royal Bank Of Canada initiated coverage on shares of Radian Group in a research report on Friday, May 22nd. They set an "outperform" rating and a $47.00 price target on the stock. Finally, Keefe, Bruyette & Woods decreased their price objective on shares of Radian Group from $46.00 to $44.00 and set an "outperform" rating on the stock in a research note on Tuesday, August 11th. Five research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, Radian Group currently has an average rating of "Moderate Buy" and an average price target of $42.17.

Insider Activity

In other Radian Group news, CEO Michael S. Weinbach acquired 120,487 shares of the company's stock in a transaction that occurred on Monday, June 1st. The stock was acquired at an average price of $33.89 per share, for a total transaction of $4,083,304.43. Following the acquisition, the chief executive officer directly owned 120,487 shares in the company, valued at $4,083,304.43. This represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 2.03% of the stock is owned by corporate insiders.

Radian Group Price Performance

Shares of NYSE:RDN opened at $36.52 on Friday. Radian Group Inc. has a 52-week low of $31.50 and a 52-week high of $41.05. The company has a market capitalization of $4.83 billion, a PE ratio of 9.39, a price-to-earnings-growth ratio of 0.88 and a beta of 0.72. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.60 and a current ratio of 0.60. The company has a fifty day moving average of $37.64 and a 200-day moving average of $35.63.

Radian Group (NYSE:RDN - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The insurance provider reported $1.14 earnings per share for the quarter, missing the consensus estimate of $1.34 by ($0.20). Radian Group had a net margin of 32.60% and a return on equity of 13.65%. The firm had revenue of $574.96 million for the quarter, compared to analyst estimates of $556.55 million. During the same period last year, the business earned $1.01 EPS. The company's revenue was up 92.3% compared to the same quarter last year. On average, equities analysts predict that Radian Group Inc. will post 4.86 EPS for the current fiscal year.

Radian Group Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Stockholders of record on Monday, August 24th will be paid a $0.255 dividend. The ex-dividend date of this dividend is Monday, August 24th. This represents a $1.02 annualized dividend and a dividend yield of 2.8%. Radian Group's dividend payout ratio is currently 26.22%.

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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