Radian Group Inc. $RDN Shares Sold by First Trust Advisors LP

Key Points

• First Trust Advisors LP cut its Radian Group stake by 19.4%, selling 450,986 shares and ending the quarter with 1,877,833 shares (about 1.39% of the company) valued at ~$68.0M.
• Other institutions were active too: Norges Bank opened a new ~<$85.8M> position and Vanguard raised its holding to 16.27M shares (~$589.4M), leaving 95.33% institutional ownership of RDN.
• Radian recently reported an earnings beat (EPS $1.16 vs. $1.11), pays a $0.255 quarterly dividend (annual $1.02, ~3.1% yield), has a $4.5B market cap and a PE of 7.96, and carries a consensus analyst rating of "Moderate Buy" with a $40.80 target.

First Trust Advisors LP lowered its stake in shares of Radian Group Inc. (NYSE:RDN - Free Report) by 19.4% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 1,877,833 shares of the insurance provider's stock after selling 450,986 shares during the period. First Trust Advisors LP owned about 1.39% of Radian Group worth $68,015,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Norges Bank purchased a new position in Radian Group during the second quarter worth $85,785,000. Vanguard Group Inc. lifted its position in shares of Radian Group by 2.7% in the third quarter. Vanguard Group Inc. now owns 16,272,597 shares of the insurance provider's stock valued at $589,393,000 after acquiring an additional 427,473 shares in the last quarter. Balyasny Asset Management L.P. lifted its position in shares of Radian Group by 113.3% in the second quarter. Balyasny Asset Management L.P. now owns 744,197 shares of the insurance provider's stock valued at $26,806,000 after acquiring an additional 395,370 shares in the last quarter. Canada Pension Plan Investment Board acquired a new stake in shares of Radian Group during the second quarter valued at $9,048,000. Finally, Qube Research & Technologies Ltd purchased a new stake in Radian Group during the 2nd quarter worth about $8,726,000. 95.33% of the stock is currently owned by institutional investors and hedge funds.

Radian Group Stock Performance

NYSE RDN opened at $33.03 on Wednesday. The business's 50-day moving average price is $33.86 and its 200 day moving average price is $34.66. The company has a current ratio of 3.40, a quick ratio of 3.40 and a debt-to-equity ratio of 0.23. Radian Group Inc. has a twelve month low of $29.32 and a twelve month high of $38.84. The company has a market capitalization of $4.50 billion, a PE ratio of 7.96, a price-to-earnings-growth ratio of 1.81 and a beta of 0.80.

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

Radian Group Announces Dividend

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

Wall Street Analysts Forecast Growth

RDN has been the subject of several analyst reports. Keefe, Bruyette & Woods raised 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. Barclays set a $40.00 price target on shares of Radian Group in a research note on Monday, February 23rd. Weiss Ratings lowered shares of Radian Group from a "buy (a-)" rating to a "buy (b+)" rating in a research report on Tuesday, January 13th. Zacks Research raised shares of Radian Group from a "hold" rating to a "strong-buy" rating in a research note on Friday, February 20th. Finally, Roth Mkm restated a "buy" rating and set a $45.00 target price on shares of Radian Group in a research report on Friday, January 2nd. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Radian Group has a consensus rating of "Moderate Buy" and a consensus target price of $40.80.

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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