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

Key Points

• Analysts hold a “Moderate Buy” consensus on Radian Group, with five buy ratings and three holds. The average 12-month price target is $42.17, above the reported share price of $36.69.
• Radian reported quarterly EPS of $1.14, below the $1.34 consensus estimate, while revenue reached $574.96 million and rose 92.3% year over year.
• The company declared a quarterly dividend of $0.255 per share, equivalent to a $1.02 annualized payout and a 2.8% yield. Institutional investors own approximately 95.33% of the stock.

Radian Group Inc. (NYSE:RDN - Get Free Report) has earned a consensus rating of "Moderate Buy" from the eight brokerages that are presently covering the stock, MarketBeat reports. Three equities research analysts have rated the stock with a hold recommendation and five have assigned a buy recommendation to the company. The average 1 year price objective among analysts that have issued a report on the stock in the last year is $42.1667.

A number of brokerages have commented on RDN. Weiss Ratings upgraded shares of Radian Group from a "buy (b)" rating to a "buy (b+)" rating in a research note on Tuesday, August 11th. Royal Bank Of Canada assumed coverage on Radian Group in a research report on Friday, May 22nd. They set an "outperform" rating and a $47.00 target price for the company. Keefe, Bruyette & Woods dropped their target price on shares of Radian Group from $46.00 to $44.00 and set an "outperform" rating on the stock in a research note on Tuesday, August 11th. Bank of America raised Radian Group from an "underperform" rating to a "buy" rating and lifted their price objective for the stock from $35.00 to $43.00 in a report on Wednesday, April 29th. Finally, Wall Street Zen cut shares of Radian Group from a "buy" rating to a "hold" rating in a report on Sunday, August 9th.

Radian Group Stock Up 0.3%

Shares of RDN stock traded up $0.10 on Monday, reaching $36.69. 96,527 shares of the company were exchanged, compared to its average volume of 1,301,707. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.60 and a quick ratio of 0.60. The company has a 50-day moving average of $37.45 and a 200-day moving average of $35.53. The company has a market cap of $4.85 billion, a price-to-earnings ratio of 9.44, a PEG ratio of 0.89 and a beta of 0.72. Radian Group has a one year low of $31.50 and a one year high of $41.05.

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

Radian Group Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 9th. Stockholders of record on Monday, August 24th will be given a $0.255 dividend. The ex-dividend date is Monday, August 24th. This represents a $1.02 annualized dividend and a dividend yield of 2.8%. Radian Group's payout ratio is 26.22%.

Insider Buying and Selling

In other Radian Group news, Director Noel Joseph Spiegel sold 4,834 shares of the firm's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $36.19, for a total value of $174,942.46. Following the completion of the transaction, the director owned 20,008 shares in the company, valued at $724,089.52. This trade represents a 19.46% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Margaret Anne Leyden sold 2,070 shares of Radian Group stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $34.59, for a total value of $71,601.30. Following the transaction, the director directly owned 6,864 shares of the company's stock, valued at $237,425.76. The trade was a 23.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 15,517 shares of company stock valued at $557,610. 2.03% of the stock is owned by company insiders.

Hedge Funds Weigh In On Radian Group

A number of large investors have recently modified their holdings of RDN. Northwestern Mutual Wealth Management Co. grew its stake in 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 acquiring an additional 476 shares in the last quarter. Geneos Wealth Management Inc. boosted its holdings in Radian Group by 191.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 871 shares of the insurance provider's stock valued at $29,000 after purchasing an additional 572 shares during the period. Fifth Third Bancorp boosted its holdings in Radian Group by 65.8% in the 4th quarter. Fifth Third Bancorp now owns 907 shares of the insurance provider's stock valued at $33,000 after purchasing an additional 360 shares during the period. Measured Wealth Private Client Group LLC purchased a new position in shares of Radian Group during the 3rd quarter valued at $34,000. Finally, Global Retirement Partners LLC purchased a new position in shares of Radian Group during the 2nd quarter valued at $37,000. 95.33% of the stock is currently owned by 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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