Insider Selling: Radian Group (NYSE:RDN) Chairman Sells 5,000 Shares of Stock

Key Points

• Radian Group Chairman Howard Bernard Culang sold 5,000 shares on May 26 at an average price of $36.20, a transaction worth $181,000. After the sale, he directly owned 11,662 shares, cutting his position by about 30%.
• The stock traded lower on the day, falling 1.5% to $35.78 amid volume below its average. Radian now sports a market cap of $4.76 billion and trades near its 50-day and 200-day moving averages.
• Radian reported better-than-expected quarterly results, posting $1.27 EPS and $466.34 million in revenue, both above analyst estimates. The company also announced a quarterly dividend of $0.255 per share, yielding 2.9% annually.

Radian Group Inc. (NYSE:RDN - Get Free Report) Chairman Howard Bernard Culang sold 5,000 shares of the company's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $36.20, for a total transaction of $181,000.00. Following the transaction, the chairman directly owned 11,662 shares of the company's stock, valued at $422,164.40. This trade represents a 30.01% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website.

Radian Group Trading Down 1.5%

Shares of RDN traded down $0.55 during mid-day trading on Tuesday, reaching $35.78. The company had a trading volume of 1,048,414 shares, compared to its average volume of 1,325,040. The stock has a market cap of $4.76 billion, a price-to-earnings ratio of 8.81, a price-to-earnings-growth ratio of 0.90 and a beta of 0.76. The firm has a fifty day simple moving average of $35.00 and a 200-day simple moving average of $34.72. 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 current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 0.16.

Radian Group (NYSE:RDN - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The insurance provider reported $1.27 EPS for the quarter, topping analysts' consensus estimates of $1.17 by $0.10. The business had revenue of $466.34 million during the quarter, compared to the consensus estimate of $377.83 million. Radian Group had a return on equity of 13.57% and a net margin of 40.50%.The business's revenue for the quarter was up 46.6% on a year-over-year basis. During the same period in the prior year, the firm posted $0.99 EPS. On average, sell-side analysts anticipate that Radian Group Inc. will post 5.23 EPS for the current fiscal year.

Radian Group Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, June 17th. Shareholders of record on Tuesday, June 2nd will be paid a dividend of $0.255 per share. The ex-dividend date is Tuesday, June 2nd. This represents a $1.02 annualized dividend and a yield of 2.9%. Radian Group's dividend payout ratio is currently 25.12%.

Analyst Ratings Changes

RDN has been the subject of a number of research reports. UBS Group decreased their target price on Radian Group from $41.00 to $39.00 and set a "neutral" rating for the company in a report on Thursday, March 12th. Zacks Research lowered shares of Radian Group from a "strong-buy" rating to a "hold" rating in a report on Monday, April 20th. Wall Street Zen raised shares of Radian Group from a "hold" rating to a "buy" rating in a research report on Saturday, May 16th. Barclays boosted their price objective on shares of Radian Group from $37.00 to $39.00 and gave the stock an "equal weight" rating in a research note on Monday, May 11th. Finally, Bank of America raised shares of Radian Group from an "underperform" rating to a "buy" rating and increased their price objective for the stock from $35.00 to $43.00 in a research report on Wednesday, April 29th. Five investment 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, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $42.67.

Institutional Investors Weigh In On Radian Group

Hedge funds have recently modified their holdings of the stock. Norges Bank purchased a new position in Radian Group in the 4th quarter worth approximately $77,364,000. Balyasny Asset Management L.P. raised its stake in shares of Radian Group by 151.7% during the third 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 period. Donald Smith & CO. Inc. lifted its position in shares of Radian Group by 43.7% during the fourth quarter. Donald Smith & CO. Inc. now owns 3,012,255 shares of the insurance provider's stock worth $108,411,000 after purchasing an additional 916,003 shares in the last quarter. Vanguard Group Inc. lifted its position in shares of Radian Group by 2.7% during the third 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 in the last quarter. Finally, Millennium Management LLC boosted its stake in shares of Radian Group by 59.7% in the third quarter. Millennium Management LLC now owns 1,007,172 shares of the insurance provider's stock valued at $36,480,000 after purchasing an additional 376,533 shares during the period. 95.33% of the stock is currently owned by hedge funds and other institutional investors.

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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