Radian Group (NYSE:RDN) Reaches New 1-Year Low - Time to Sell?

Key Points

• Radian Group shares fell to a new 52-week low of $31.16, below both the 50-day and 200-day moving averages.
• Analysts remain broadly positive, with six Buy ratings and three Holds, a consensus “Moderate Buy” rating, and an average price target of $43 versus the recent price near $31.43.
• The company reported quarterly EPS of $1.14, missing estimates, but revenue rose 92.3% year over year; it also offers a $1.02 annual dividend yielding about 3.3%.

Radian Group Inc. (NYSE:RDN - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Wednesday. The stock traded as low as $31.16 and last traded at $31.4280, with a volume of 1273935 shares changing hands. The stock had previously closed at $32.75.

Analysts Set New Price Targets

A number of analysts recently commented on RDN shares. Wall Street Zen upgraded Radian Group from a "hold" rating to a "buy" rating in a research report on Saturday, September 19th. Barclays reduced their target price on shares of Radian Group from $39.00 to $35.00 and set an "equal weight" rating on the stock in a report on Monday, August 10th. Keefe, Bruyette & Woods lowered their price target on shares of Radian Group from $46.00 to $44.00 and set an "outperform" rating for the company in a report on Tuesday, August 11th. BTIG Research started coverage on shares of Radian Group in a research report on Tuesday, September 22nd. They issued a "buy" rating and a $48.00 price objective for the company. Finally, Weiss Ratings raised shares of Radian Group from a "buy (b)" rating to a "buy (b+)" rating in a research note on Monday. Six investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $43.00.

Radian Group Price Performance

The company has a 50-day moving average of $36.54 and a two-hundred day moving average of $35.87. The stock has a market capitalization of $4.15 billion, a PE ratio of 8.07, a P/E/G ratio of 0.80 and a beta of 0.70. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.60 and a quick ratio of 0.60.

Radian Group (NYSE:RDN - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The insurance provider reported $1.14 EPS for the quarter, missing the consensus estimate of $1.34 by ($0.20). The business had revenue of $574.96 million during the quarter, compared to analysts' expectations of $556.55 million. Radian Group had a net margin of 32.60% and a return on equity of 13.65%. The firm's quarterly revenue was up 92.3% compared to the same quarter last year. During the same quarter last year, the firm earned $1.01 EPS. Sell-side analysts predict that Radian Group Inc. will post 4.86 EPS for the current fiscal year.

Radian Group Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 9th. Investors of record on Monday, August 24th were given a dividend of $0.2550 per share. The ex-dividend date of this dividend was Monday, August 24th. This represents a $1.02 annualized dividend and a yield of 3.3%. Radian Group's dividend payout ratio is 26.22%.

Insiders Place Their Bets

In other Radian Group news, EVP Meghan Bartholomew sold 7,812 shares of Radian Group stock in a transaction on Monday, September 14th. The shares were sold at an average price of $35.94, for a total value of $280,763.28. Following the transaction, the executive vice president owned 39,203 shares in the company, valued at $1,408,955.82. This trade represents a 16.62% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.03% of the stock is currently owned by corporate insiders.

Institutional Trading of Radian Group

A number of institutional investors and hedge funds have recently made changes to their positions in the company. IFP Advisors Inc boosted its holdings in Radian Group by 109.3% in the second quarter. IFP Advisors Inc now owns 672 shares of the insurance provider's stock valued at $25,000 after acquiring an additional 351 shares during the last quarter. Global Retirement Partners LLC purchased a new stake in shares of Radian Group during the 2nd quarter worth about $37,000. Root Financial Partners LLC increased its position in Radian Group by 67.3% during the 1st quarter. Root Financial Partners LLC now owns 1,288 shares of the insurance provider's stock worth $43,000 after purchasing an additional 518 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new stake in Radian Group during the 2nd quarter worth approximately $44,000. Finally, Nykredit A S purchased a new position in Radian Group in the second quarter valued at approximately $55,000. 95.33% of the stock is currently owned by institutional investors and hedge funds.

Radian Group Company Profile

Radian Group Inc is a Philadelphia-based provider of private mortgage insurance and related risk-management services. Through its principal subsidiary, Radian Guaranty Inc, the company helps lenders manage credit risk on residential mortgages, primarily by insuring loans that have relatively low down payments. Mortgage insurance can enable qualified borrowers to obtain home financing without making a traditional 20% down payment.

Radian's mortgage insurance products are designed for lenders, mortgage originators and investors in the United States.

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