Y Intercept Hong Kong Ltd Invests $669,000 in Radian Group Inc. (NYSE:RDN)

Key Points

• Y Intercept Hong Kong Ltd acquired 20,239 shares of Radian Group Inc., valued at approximately $669,000, during the 1st quarter.
• Radian Group announced a $750 million stock repurchase program, which allows the company to buy back up to 16.9% of its outstanding shares, indicating a belief that its stock is undervalued.
• The company reported earnings per share (EPS) of $0.99 for the last quarter, beating estimates, but had a slight revenue decline of 0.4% year-over-year.

Y Intercept Hong Kong Ltd acquired a new position in Radian Group Inc. (NYSE:RDN - Free Report) during the 1st quarter, according to its most recent filing with the SEC. The fund acquired 20,239 shares of the insurance provider's stock, valued at approximately $669,000.

Several other institutional investors and hedge funds have also made changes to their positions in the business. Covestor Ltd boosted its position in shares of Radian Group by 35.6% in the 4th quarter. Covestor Ltd now owns 1,351 shares of the insurance provider's stock worth $43,000 after buying an additional 355 shares in the last quarter. Summit Investment Advisors Inc. raised its holdings in shares of Radian Group by 3.3% in the fourth quarter. Summit Investment Advisors Inc. now owns 15,854 shares of the insurance provider's stock worth $503,000 after acquiring an additional 502 shares during the last quarter. Xponance Inc. raised its holdings in shares of Radian Group by 5.0% in the first quarter. Xponance Inc. now owns 11,379 shares of the insurance provider's stock worth $376,000 after acquiring an additional 538 shares during the last quarter. Alliancebernstein L.P. raised its holdings in shares of Radian Group by 0.3% in the fourth quarter. Alliancebernstein L.P. now owns 199,889 shares of the insurance provider's stock worth $6,340,000 after acquiring an additional 629 shares during the last quarter. Finally, Quantinno Capital Management LP raised its holdings in shares of Radian Group by 9.8% in the fourth quarter. Quantinno Capital Management LP now owns 8,629 shares of the insurance provider's stock worth $274,000 after acquiring an additional 768 shares during the last quarter. 95.33% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other Radian Group news, Director Noel Joseph Spiegel sold 5,105 shares of the business's stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $33.66, for a total transaction of $171,834.30. Following the completion of the sale, the director owned 20,008 shares of the company's stock, valued at approximately $673,469.28. The trade was a 20.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Lisa Mumford sold 2,500 shares of the company's stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $33.45, for a total value of $83,625.00. Following the completion of the sale, the director directly owned 22,329 shares of the company's stock, valued at $746,905.05. The trade was a 10.07% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 86,378 shares of company stock valued at $2,944,414 in the last 90 days. 2.01% of the stock is owned by corporate insiders.

Radian Group Trading Down 1.1%

Shares of RDN stock traded down $0.36 during trading hours on Wednesday, hitting $33.58. 1,493,215 shares of the company were exchanged, compared to its average volume of 1,024,548. The firm has a market cap of $4.51 billion, a PE ratio of 8.54 and a beta of 0.72. Radian Group Inc. has a 1 year low of $29.32 and a 1 year high of $37.86. The company has a quick ratio of 3.44, a current ratio of 3.44 and a debt-to-equity ratio of 0.52. The firm has a fifty day moving average of $34.48 and a 200 day moving average of $33.29.

Radian Group (NYSE:RDN - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The insurance provider reported $1.01 earnings per share for the quarter, topping the consensus estimate of $0.93 by $0.08. Radian Group had a net margin of 46.29% and a return on equity of 13.54%. During the same quarter last year, the company posted $0.98 EPS. The business's revenue was down .9% on a year-over-year basis. Analysts expect that Radian Group Inc. will post 3.79 earnings per share for the current year.

Radian Group announced that its board has initiated a share repurchase plan on Wednesday, May 21st that permits the company to buyback $750.00 million in outstanding shares. This buyback authorization permits the insurance provider to reacquire up to 16.9% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

Radian Group Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 17th. Shareholders of record on Monday, June 2nd were given a dividend of $0.255 per share. This represents a $1.02 dividend on an annualized basis and a yield of 3.04%. The ex-dividend date of this dividend was Monday, June 2nd. Radian Group's dividend payout ratio (DPR) is presently 25.95%.

Analyst Upgrades and Downgrades

RDN has been the subject of a number of analyst reports. Compass Point cut Radian Group from a "strong-buy" rating to a "hold" rating in a report on Friday, May 23rd. Keefe, Bruyette & Woods cut Radian Group from a "moderate buy" rating to a "hold" rating and set a $38.00 price target for the company. in a report on Monday, July 7th. Barclays boosted their price target on Radian Group from $34.00 to $35.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 8th. Finally, UBS Group reissued a "neutral" rating and issued a $38.00 price target (up from $36.00) on shares of Radian Group in a report on Monday, July 14th. Five investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. According to MarketBeat, Radian Group presently has a consensus rating of "Hold" and an average target price of $37.50.

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.