Radian Group Inc. $RDN Stock: Alps Advisors Inc. Trims Holdings

Key Points

• Alps Advisors cut its Radian Group stake by 37% in the third quarter, selling 186,011 shares and retaining 316,901 shares valued at about $9.7 million.
• Radian reported quarterly EPS of $1.44, above the $1.20 consensus estimate, and revenue of $624.1 million, also ahead of estimates.
• Analysts’ consensus was “Moderate Buy,” with an average price target of $43.29; six analysts rated the stock Buy and three rated it Hold.

Alps Advisors Inc. cut its stake in shares of Radian Group Inc. (NYSE:RDN - Free Report) by 37.0% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 316,901 shares of the insurance provider's stock after selling 186,011 shares during the quarter. Alps Advisors Inc. owned 0.24% of Radian Group worth $9,700,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also added to or reduced their stakes in the stock. BlackRock Inc. bought a new stake in Radian Group during the 2nd quarter valued at $728,072,000. Dimensional Fund Advisors LP lifted its position in Radian Group by 4.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 5,948,335 shares of the insurance provider's stock valued at $196,773,000 after acquiring an additional 230,912 shares in the last quarter. Donald Smith & CO. Inc. bought a new position in Radian Group in the 2nd quarter valued at about $163,104,000. Caisse de depot et placement du Quebec acquired a new position in Radian Group during the 2nd quarter valued at about $89,334,000. Finally, Bruni J V & Co. Co. acquired a new position in Radian Group during the 2nd quarter valued at about $59,355,376. 95.33% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities analysts have commented on RDN shares. Weiss Ratings cut shares of Radian Group from a "buy (b+)" rating to a "buy (b)" rating in a research report on Tuesday, October 13th. Wall Street Zen downgraded Radian Group from a "buy" rating to a "hold" rating in a research note on Saturday, October 10th. BTIG Research began coverage on Radian Group in a report on Tuesday, September 22nd. They issued a "buy" rating and a $48.00 target price for the company. Keefe, Bruyette & Woods decreased their price target on Radian Group from $46.00 to $44.00 and set an "outperform" rating for the company in a research report on Tuesday, August 11th. Finally, Barclays increased their price target on Radian Group from $36.00 to $37.00 and gave the company an "equal weight" rating in a research report on Friday. Six investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $43.29.

Insider Activity at Radian Group

In other Radian Group news, EVP Stephen Keleher sold 8,000 shares of the company's stock in a transaction that occurred on Thursday, November 5th. The stock was sold at an average price of $38.58, for a total transaction of $308,640.00. Following the transaction, the executive vice president owned 27,789 shares in the company, valued at approximately $1,072,099.62. This represents a 22.35% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Meghan Bartholomew sold 7,812 shares of the company's stock in a transaction on Monday, September 14th. The stock was sold at an average price of $35.94, for a total value of $280,763.28. Following the completion of the sale, the executive vice president directly owned 39,203 shares in the company, valued at approximately $1,408,955.82. The trade was a 16.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.03% of the stock is currently owned by insiders.

Radian Group Stock Down 3.5%

Shares of NYSE RDN opened at $35.95 on Friday. Radian Group Inc. has a 12 month low of $30.53 and a 12 month high of $41.05. The company has a current ratio of 0.37, a quick ratio of 0.60 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $4.76 billion, a price-to-earnings ratio of 8.81, a PEG ratio of 0.90 and a beta of 0.69. The business has a 50-day moving average of $34.80 and a 200-day moving average of $35.27.

Radian Group (NYSE:RDN - Get Free Report) last announced its quarterly earnings data on Wednesday, November 4th. The insurance provider reported $1.44 EPS for the quarter, beating the consensus estimate of $1.20 by $0.24. The firm had revenue of $624.11 million for the quarter, compared to analyst estimates of $595.99 million. Radian Group had a return on equity of 14.39% and a net margin of 28.41%. During the same period in the prior year, the company earned $1.15 EPS. Sell-side analysts expect that Radian Group Inc. will post 4.85 earnings per share for the current fiscal year.

Radian Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 9th. Stockholders of record on Monday, August 24th were given a $0.2550 dividend. This represents a $1.02 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date was Monday, August 24th. Radian Group's dividend payout ratio (DPR) is currently 25.00%.

Key Headlines Impacting Radian Group

Here are the key news stories impacting Radian Group this week:

• Positive Sentiment: Radian earned $1.44 per share, beating analyst estimates of roughly $1.20–$1.27 and rising from $1.15 a year earlier. Revenue reached $624.1 million, above the cited consensus estimate. RDN Q3 Earnings Beat on Specialty Strength, Revenues Rise Y/Y
• Positive Sentiment: Operating income increased 25.2%, supported by strength in Specialty Insurance, including Inigo, as well as underwriting and investment income. Commentary following the earnings release also highlighted a valuation case that RDN could be substantially below estimated fair value; that assessment is a model-based view, not a guaranteed return. Radian Group Could Be 66% Below Fair Value As Strong Q3 Earnings Land
• Neutral Sentiment: Barclays raised its price target from $36 to $37 but kept an “equal weight” rating, implying limited upside at the cited share price and signaling a measured analyst outlook. Barclays stock recommendations
• Negative Sentiment: Despite the earnings beat, RDN shares declined in the latest trading session. The provided reports do not identify a specific catalyst for that move, so it may reflect investor caution or profit-taking rather than a clearly reported deterioration in results.

About Radian Group

Radian Group Inc NYSE: RDN is a financial services company that provides mortgage insurance and related services to the residential real estate industry. Through its mortgage insurance subsidiaries, including Radian Guaranty Inc, the company helps lenders manage credit risk on residential mortgages, particularly loans made to borrowers with smaller down payments. Its insurance can also help borrowers obtain home financing without contributing a traditional 20% down payment.

Radian's mortgage insurance business serves mortgage lenders, banks, credit unions and other housing finance participants primarily in the United States.

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