River Road Asset Management LLC Sells 156,124 Shares of Radian Group Inc. $RDN

Key Points

• River Road Asset Management cut its Radian Group stake by 24.1% in the fourth quarter, selling 156,124 shares and ending with 491,560 shares worth about $17.7 million.
• Radian Group reported better-than-expected quarterly results, posting EPS of $1.27 versus $1.17 expected and revenue of $466.34 million, up 46.6% year over year.
• The company also paid a quarterly dividend of $0.255 per share, which annualizes to $1.02 and implies a 2.9% yield; analysts currently rate the stock a Moderate Buy with a consensus target of $42.67.

River Road Asset Management LLC trimmed its holdings in shares of Radian Group Inc. (NYSE:RDN - Free Report) by 24.1% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 491,560 shares of the insurance provider's stock after selling 156,124 shares during the quarter. River Road Asset Management LLC owned 0.36% of Radian Group worth $17,691,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in the business. Norges Bank bought a new stake in Radian Group during the fourth quarter worth approximately $77,364,000. Balyasny Asset Management L.P. lifted its stake in shares of Radian Group by 151.7% in the 3rd quarter. Balyasny Asset Management L.P. now owns 1,873,049 shares of the insurance provider's stock valued at $67,842,000 after purchasing an additional 1,128,852 shares during the last quarter. Donald Smith & CO. Inc. lifted its stake in shares of Radian Group by 43.7% in the 4th quarter. Donald Smith & CO. Inc. now owns 3,012,255 shares of the insurance provider's stock valued at $108,411,000 after purchasing an additional 916,003 shares during the last quarter. Vanguard Group Inc. boosted its holdings in shares of Radian Group by 2.7% in the 3rd quarter. Vanguard Group Inc. now owns 16,272,597 shares of the insurance provider's stock worth $589,393,000 after purchasing an additional 427,473 shares during the period. Finally, Millennium Management LLC boosted its holdings in shares of Radian Group by 59.7% in the 3rd quarter. Millennium Management LLC now owns 1,007,172 shares of the insurance provider's stock worth $36,480,000 after purchasing an additional 376,533 shares during the period. Institutional investors own 95.33% of the company's stock.

Radian Group Trading Up 0.0%

Shares of NYSE RDN opened at $34.72 on Friday. Radian Group Inc. has a fifty-two week low of $31.50 and a fifty-two week high of $38.84. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.58 and a current ratio of 0.58. The company has a market cap of $4.62 billion, a price-to-earnings ratio of 8.55, a PEG ratio of 0.87 and a beta of 0.73. The business's 50 day moving average price is $35.47 and its 200-day moving average price is $34.64.

Radian Group (NYSE:RDN - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The insurance provider reported $1.27 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.17 by $0.10. The company had revenue of $466.34 million during the quarter, compared to analysts' expectations of $377.83 million. Radian Group had a return on equity of 13.57% and a net margin of 40.50%.Radian Group's revenue was up 46.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.99 EPS. On average, sell-side analysts expect that Radian Group Inc. will post 5.17 earnings per share for the current year.

Radian Group Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 17th. Stockholders of record on Tuesday, June 2nd were given a dividend of $0.255 per share. This represents a $1.02 annualized dividend and a dividend yield of 2.9%. The ex-dividend date was Tuesday, June 2nd. Radian Group's dividend payout ratio (DPR) is 25.12%.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the company. Keefe, Bruyette & Woods increased their price target on Radian Group from $42.00 to $43.00 and gave the company an "outperform" rating in a report on Friday, April 10th. Bank of America raised shares of Radian Group from an "underperform" rating to a "buy" rating and lifted their price objective for the stock from $35.00 to $43.00 in a research note on Wednesday, April 29th. Wall Street Zen cut shares of Radian Group from a "buy" rating to a "hold" rating in a research report on Saturday, June 6th. UBS Group reduced their target price on shares of Radian Group from $41.00 to $39.00 and set a "neutral" rating on the stock in a research note on Thursday, March 12th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Radian Group in a report on Tuesday. Five equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Radian Group currently has an average rating of "Moderate Buy" and a consensus price target of $42.67.

Insider Activity

In other news, CEO Michael S. Weinbach acquired 49,513 shares of Radian Group stock in a transaction on Tuesday, June 2nd. The shares were bought at an average cost of $34.04 per share, for a total transaction of $1,685,422.52. Following the acquisition, the chief executive officer directly owned 170,000 shares of the company's stock, valued at $5,786,800. This trade represents a 41.09% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Noel Joseph Spiegel sold 4,834 shares of Radian Group stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $36.19, for a total value of $174,942.46. Following the sale, the director directly owned 20,008 shares of the company's stock, valued at approximately $724,089.52. This trade represents a 19.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 75,516 shares of company stock valued at $2,747,576. Insiders own 2.03% of the company's stock.

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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