Radian Group Inc. (NYSE:RDN) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Radian Group has a consensus analyst rating of “Moderate Buy” from eight brokerages, with five buy ratings and three hold ratings. The average 12-month price target is about $42.67.
• The company reported strong quarterly results, beating estimates with EPS of $1.27 versus $1.17 expected and revenue of $466.34 million versus $377.83 million expected. Revenue rose 46.6% year over year.
• Radian also announced a quarterly dividend of $0.255 per share, equal to $1.02 annually and a 3.0% yield. Insider activity was mixed, including a director sale and a notable CEO stock purchase.

Radian Group Inc. (NYSE:RDN - Get Free Report) has been given a consensus rating of "Moderate Buy" by the eight brokerages that are presently covering the firm, MarketBeat Ratings reports. Three analysts have rated the stock with a hold recommendation and five have issued a buy recommendation on the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $42.6667.

RDN has been the subject of a number of research analyst reports. UBS Group cut their price objective on shares of 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 lowered shares of Radian Group from a "buy" rating to a "hold" rating in a report on Saturday. Barclays increased their price objective on shares of Radian Group from $37.00 to $39.00 and gave the company an "equal weight" rating in a report 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 company from $35.00 to $43.00 in a report on Wednesday, April 29th.

Insider Buying and Selling at Radian Group

In other Radian Group news, Director Margaret Anne Leyden sold 2,070 shares of the stock in a transaction that occurred 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 sale, the director directly owned 6,864 shares of the company's stock, valued at $237,425.76. This trade represents a 23.17% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Michael S. Weinbach acquired 49,513 shares of Radian Group stock in a transaction on Tuesday, June 2nd. The stock was purchased at an average cost of $34.04 per share, for a total transaction of $1,685,422.52. Following the purchase, the chief executive officer owned 170,000 shares in the company, valued at approximately $5,786,800. The trade was a 41.09% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders sold 75,516 shares of company stock worth $2,747,576. Insiders own 2.03% of the company's stock.

Institutional Trading of Radian Group

A number of large investors have recently added to or reduced their stakes in RDN. Northwestern Mutual Wealth Management Co. increased its stake in Radian Group by 178.9% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 742 shares of the insurance provider's stock worth $27,000 after acquiring an additional 476 shares during the last quarter. Bessemer Group Inc. increased its stake in Radian Group by 66.7% in the 3rd quarter. Bessemer Group Inc. now owns 795 shares of the insurance provider's stock worth $29,000 after acquiring an additional 318 shares during the last quarter. V Square Quantitative Management LLC bought a new stake in Radian Group in the 4th quarter worth approximately $29,000. Geneos Wealth Management Inc. increased its stake in Radian Group by 191.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 871 shares of the insurance provider's stock worth $29,000 after acquiring an additional 572 shares during the last quarter. Finally, Fifth Third Bancorp increased its stake in Radian Group by 65.8% in the 4th quarter. Fifth Third Bancorp now owns 907 shares of the insurance provider's stock worth $33,000 after acquiring an additional 360 shares during the last quarter. Institutional investors own 95.33% of the company's stock.

Radian Group Stock Up 2.0%

NYSE RDN opened at $34.24 on Wednesday. The stock's 50-day moving average price is $35.30 and its 200-day moving average price is $34.67. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 0.16. Radian Group has a 52 week low of $31.50 and a 52 week high of $38.84. The company has a market capitalization of $4.55 billion, a P/E ratio of 8.43, a price-to-earnings-growth ratio of 0.84 and a beta of 0.73.

Radian Group (NYSE:RDN - Get Free Report) last issued its earnings results on Thursday, May 7th. The insurance provider reported $1.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.10. The company had revenue of $466.34 million for 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 firm's quarterly revenue was up 46.6% on a year-over-year basis. During the same quarter last year, the company earned $0.99 EPS. On average, equities research analysts predict that Radian Group will post 5.17 earnings per share for the current year.

Radian Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 17th. Shareholders of record on Tuesday, June 2nd will be issued a dividend of $0.255 per share. This represents a $1.02 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date of this dividend is Tuesday, June 2nd. Radian Group's dividend payout ratio (DPR) is 25.12%.

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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