Caisse DE Depot ET Placement DU Quebec Boosts Holdings in Radian Group Inc. $RDN

Key Points

• Caisse DE Depot ET Placement DU Quebec increased its stake in Radian Group by 76.4% in Q1, holding approximately $4 million worth of shares after acquiring an additional 52,571 shares.
• Radian Group reported earnings of $1.01 EPS for Q2, exceeding estimates, but with a 9% decline in revenue compared to the previous year.
• The company announced a $750 million stock repurchase plan, which indicates management's belief that its shares are currently undervalued.

Caisse DE Depot ET Placement DU Quebec grew its stake in shares of Radian Group Inc. (NYSE:RDN - Free Report) by 76.4% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 121,400 shares of the insurance provider's stock after buying an additional 52,571 shares during the period. Caisse DE Depot ET Placement DU Quebec owned 0.09% of Radian Group worth $4,015,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently modified their holdings of the business. AlphaQuest LLC grew its holdings in shares of Radian Group by 3.1% during the first quarter. AlphaQuest LLC now owns 15,904 shares of the insurance provider's stock worth $526,000 after purchasing an additional 476 shares in the last quarter. Xponance Inc. lifted its position in Radian Group by 5.0% in the first quarter. Xponance Inc. now owns 11,379 shares of the insurance provider's stock valued at $376,000 after purchasing an additional 538 shares during the last quarter. Covestor Ltd lifted its position in 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 during the last quarter. US Bancorp DE lifted its position in 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 during the last quarter. Finally, Quantinno Capital Management LP raised its holdings in shares of Radian Group by 9.8% during 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 in the last quarter. Hedge funds and other institutional investors own 95.33% of the company's stock.

Insider Transactions at Radian Group

In other news, EVP Edward J. Hoffman sold 20,000 shares of the 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 sale, the executive vice president directly owned 161,586 shares of the company's stock, valued at approximately $5,817,096. This represents a 11.01% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Noel Joseph Spiegel sold 5,105 shares of the stock in a transaction on Friday, June 6th. The shares were sold at an average price of $33.66, for a total value of $171,834.30. Following the sale, the director directly owned 20,008 shares in the company, valued at $673,469.28. This trade represents a 20.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 86,378 shares of company stock valued at $2,944,414. 2.16% of the stock is currently owned by corporate insiders.

Radian Group Stock Up 0.5%

RDN traded up $0.19 during trading on Friday, reaching $34.85. The stock had a trading volume of 1,200,413 shares, compared to its average volume of 754,831. The stock's 50 day moving average is $34.64 and its two-hundred day moving average is $33.45. 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 company has a market capitalization of $4.72 billion, a price-to-earnings ratio of 8.78 and a beta of 0.75. Radian Group Inc. has a one year low of $29.32 and a one year high of $36.99.

Radian Group (NYSE:RDN - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The insurance provider reported $1.01 earnings per share (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 business had revenue of $318.00 million during the quarter, compared to the consensus estimate of $321.97 million. During the same quarter in the prior year, the company earned $0.98 earnings per share. The firm's quarterly revenue was down .9% compared to the same quarter last year. As a group, analysts expect that Radian Group Inc. will post 3.79 earnings per share for the current year.

Radian Group declared that its board has authorized a share repurchase plan on Wednesday, May 21st that permits the company to repurchase $750.00 million in outstanding shares. This repurchase authorization permits the insurance provider to reacquire up to 16.9% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's board believes its shares are undervalued.

Radian Group Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 9th. Stockholders of record on Monday, August 25th will be paid a $0.255 dividend. This represents a $1.02 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend is Monday, August 25th. Radian Group's dividend payout ratio is currently 25.69%.

Analyst Ratings Changes

A number of equities analysts recently commented on RDN shares. UBS Group restated a "neutral" rating and set a $38.00 target price (up previously from $36.00) on shares of Radian Group in a report on Monday, July 14th. Compass Point downgraded Radian Group from a "strong-buy" rating to a "hold" rating in a report on Friday, May 23rd. Barclays upped their target price 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 downgraded Radian Group from a "moderate buy" rating to a "hold" rating and set a $38.00 target price for the company. in a report on Monday, July 7th. Four equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price 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.