Radian Group Inc. (NYSE:RDN) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Radian Group has a consensus analyst rating of “Moderate Buy”, with five buy ratings and three hold ratings across eight research firms. The average 12-month price target is about $43.17.
• The company reported strong quarterly results, earning $1.27 EPS versus the $1.17 estimate and posting revenue of $466.34 million, well above expectations. Revenue rose 46.6% year over year.
• Radian also raised and paid a quarterly dividend of $0.255 per share, equal to an annualized yield of about 2.7%. In insider activity, CEO Michael S. Weinbach bought shares, while a director sold shares for tax withholding purposes.

Radian Group Inc. (NYSE:RDN - Get Free Report) has been given an average recommendation of "Moderate Buy" by the eight research firms that are presently covering the firm, Marketbeat.com reports. Three equities research analysts have rated the stock with a hold rating and five have given a buy rating to the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is $43.1667.

RDN has been the subject of several recent analyst reports. Keefe, Bruyette & Woods lifted their price objective on shares of Radian Group from $43.00 to $46.00 and gave the stock an "outperform" rating in a research report on Thursday, June 25th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Radian Group in a report on Tuesday, June 16th. UBS Group lowered their price objective on Radian Group from $41.00 to $39.00 and set a "neutral" rating for the company in a research report on Thursday, March 12th. Zacks Research downgraded Radian Group from a "strong-buy" rating to a "hold" rating in a report on Monday, April 20th. Finally, Barclays raised their target price on Radian Group from $37.00 to $39.00 and gave the stock an "equal weight" rating in a research report on Monday, May 11th.

Radian Group Stock Down 0.1%

NYSE:RDN traded down $0.03 during mid-day trading on Friday, hitting $37.91. The stock had a trading volume of 960,974 shares, compared to its average volume of 1,309,834. The stock has a 50-day simple moving average of $35.91 and a two-hundred day simple moving average of $34.77. The company has a market capitalization of $5.04 billion, a PE ratio of 9.34, a PEG ratio of 0.95 and a beta of 0.72. Radian Group has a twelve month low of $31.50 and a twelve month 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 issued its quarterly earnings results on Thursday, May 7th. The insurance provider reported $1.27 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.17 by $0.10. Radian Group had a net margin of 40.50% and a return on equity of 13.57%. The company had revenue of $466.34 million during the quarter, compared to the consensus estimate of $377.83 million. During the same quarter in the previous year, the firm earned $0.99 earnings per share. The firm's quarterly revenue was up 46.6% on a year-over-year basis. On average, equities research analysts anticipate that Radian Group will post 5.17 EPS for the current year.

Radian Group Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 17th. Shareholders of record on Tuesday, June 2nd were paid a $0.255 dividend. This represents a $1.02 annualized dividend and a yield of 2.7%. The ex-dividend date was Tuesday, June 2nd. Radian Group's dividend payout ratio is currently 25.12%.

Insider Activity at Radian Group

In related news, CEO Michael S. Weinbach bought 49,513 shares of the company's stock in a transaction that occurred on Tuesday, June 2nd. The shares were purchased at an average cost of $34.04 per share, with a total value of $1,685,422.52. Following the transaction, the chief executive officer directly owned 170,000 shares of the company's stock, valued at approximately $5,786,800. This represents a 41.09% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Margaret Anne Leyden sold 2,070 shares of the stock in a transaction on Friday, May 29th. The shares were sold at an average price of $34.59, for a total transaction of $71,601.30. Following the completion of the transaction, the director directly owned 6,864 shares in the company, valued at $237,425.76. This trade represents a 23.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 75,516 shares of company stock valued at $2,747,576 in the last quarter. Company insiders own 2.03% of the company's stock.

Institutional Trading of Radian Group

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Charles Schwab Investment Management Inc. boosted its position in shares of Radian Group by 1.1% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 5,959,463 shares of the insurance provider's stock valued at $214,481,000 after purchasing an additional 63,437 shares during the period. Dimensional Fund Advisors LP lifted its stake in Radian Group by 4.0% in the first quarter. Dimensional Fund Advisors LP now owns 5,948,335 shares of the insurance provider's stock valued at $196,773,000 after buying an additional 230,912 shares during the last quarter. Donald Smith & CO. Inc. lifted its stake in Radian Group by 43.7% in the fourth quarter. Donald Smith & CO. Inc. now owns 3,012,255 shares of the insurance provider's stock valued at $108,411,000 after buying an additional 916,003 shares during the last quarter. Balyasny Asset Management L.P. boosted its holdings in shares of Radian Group by 16.8% in the fourth quarter. Balyasny Asset Management L.P. now owns 2,188,624 shares of the insurance provider's stock valued at $78,769,000 after acquiring an additional 315,575 shares during the period. Finally, Norges Bank acquired a new stake in shares of Radian Group in the fourth quarter valued at approximately $77,364,000. Institutional investors and hedge funds own 95.33% 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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