Vanguard Group Inc. Reduces Position in Radian Group Inc. $RDN

Key Points

• Vanguard Group trimmed its Radian stake by 0.3% in Q4, selling 45,818 shares and holding 16,226,779 shares—about 11.98% of the company valued at roughly $584 million.
• Executive VP Edward J. Hoffman sold 15,000 shares under a Rule 10b5-1 plan (part of 45,000 insider shares sold in the past three months), while hedge funds and other institutions own about 95.33% of the stock.
• Radian beat quarterly EPS estimates ($1.16 vs. $1.11), trades at a P/E of 8.54 with a market cap near $4.78 billion, pays an annualized $1.02 dividend (~2.9% yield), and carries a consensus analyst rating of Moderate Buy with a $40.67 target.

Vanguard Group Inc. cut its holdings in shares of Radian Group Inc. (NYSE:RDN - Free Report) by 0.3% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 16,226,779 shares of the insurance provider's stock after selling 45,818 shares during the period. Vanguard Group Inc. owned approximately 11.98% of Radian Group worth $584,002,000 at the end of the most recent reporting period.

Several other institutional investors also recently modified their holdings of RDN. Northwestern Mutual Wealth Management Co. boosted its position 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 valued at $27,000 after buying an additional 476 shares during the last quarter. Financial Consulate Inc. bought a new position in Radian Group in the third quarter valued at about $29,000. Bessemer Group Inc. lifted its holdings in Radian Group by 66.7% in the third quarter. Bessemer Group Inc. now owns 795 shares of the insurance provider's stock valued at $29,000 after acquiring an additional 318 shares during the period. V Square Quantitative Management LLC bought a new position in Radian Group in the fourth quarter valued at about $29,000. Finally, Geneos Wealth Management Inc. lifted its holdings in 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 acquiring an additional 572 shares during the period. 95.33% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Radian Group

In other news, EVP Edward J. Hoffman sold 15,000 shares of Radian Group stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $37.00, for a total value of $555,000.00. Following the completion of the transaction, the executive vice president owned 108,708 shares in the company, valued at approximately $4,022,196. The trade was a 12.13% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 45,000 shares of company stock valued at $1,620,000. 2.03% of the stock is currently owned by insiders.

Radian Group Stock Performance

NYSE:RDN opened at $35.44 on Tuesday. 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 12-month low of $31.50 and a 12-month high of $38.84. The stock has a 50-day moving average price of $34.13 and a 200 day moving average price of $34.37. The stock has a market capitalization of $4.78 billion, a P/E ratio of 8.54, a P/E/G ratio of 1.37 and a beta of 0.76.

Radian Group (NYSE:RDN - Get Free Report) last released its quarterly earnings results on Thursday, February 19th. The insurance provider reported $1.16 earnings per share for the quarter, beating the consensus estimate of $1.11 by $0.05. The business had revenue of $300.51 million during the quarter, compared to analysts' expectations of $300.45 million. Radian Group had a return on equity of 13.07% and a net margin of 46.99%.The firm's revenue for the quarter was up 2.7% compared to the same quarter last year. During the same quarter last year, the business posted $1.09 EPS. Equities research analysts forecast that Radian Group Inc. will post 4.79 EPS for the current fiscal year.

Radian Group Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 10th. Stockholders of record on Monday, February 23rd were issued a $0.255 dividend. The ex-dividend date was Monday, February 23rd. This represents a $1.02 dividend on an annualized basis and a dividend yield of 2.9%. Radian Group's payout ratio is 24.58%.

Analysts Set New Price Targets

A number of research firms have weighed in on RDN. UBS Group lowered their target price on Radian Group from $41.00 to $39.00 and set a "neutral" rating on the stock in a report on Thursday, March 12th. Keefe, Bruyette & Woods raised their price objective on Radian Group from $42.00 to $43.00 and gave the stock an "outperform" rating in a research note on Friday, April 10th. Barclays cut their target price on Radian Group from $40.00 to $37.00 and set an "equal weight" rating for the company in a research report on Monday, April 6th. Weiss Ratings cut Radian Group from a "buy (a-)" rating to a "buy (b+)" rating in a research report on Tuesday, January 13th. Finally, Bank of America upgraded Radian Group from an "underperform" rating to a "buy" rating and increased their target price for the stock from $35.00 to $43.00 in a research report on Wednesday, April 29th. Four equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $40.67.

About Radian Group

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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