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

Key Points

• Broker sentiment is positive: Eight analysts give Radian Group a consensus “Moderate Buy” rating, with five buys and three holds. The average 12-month price target is $43.17, above the reported $39.00 share price.
• Quarterly results exceeded expectations: Radian reported earnings of $1.27 per share versus the $1.17 consensus estimate, while revenue rose 46.6% year over year to $466.34 million.
• Radian maintains shareholder returns: The company declared a quarterly dividend of $0.255 per share, or $1.02 annualized, representing a 2.6% yield. Institutional investors own 95.33% of the stock, while recent insider activity included a substantial CEO purchase alongside insider selling.

Radian Group Inc. (NYSE:RDN - Get Free Report) has received a consensus rating of "Moderate Buy" from the eight research firms that are currently covering the stock, MarketBeat reports. Three research analysts have rated the stock with a hold recommendation and five have assigned a buy recommendation to the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $43.1667.

A number of brokerages recently weighed in on RDN. Royal Bank Of Canada started coverage on shares of Radian Group in a research report on Friday, May 22nd. They issued an "outperform" rating and a $47.00 price target for the company. Wall Street Zen cut Radian Group from a "buy" rating to a "hold" rating in a research report on Sunday, July 12th. Keefe, Bruyette & Woods boosted their target price on Radian Group from $43.00 to $46.00 and gave the company an "outperform" rating in a report on Thursday, June 25th. Weiss Ratings reissued a "buy (b)" rating on shares of Radian Group in a report on Tuesday, June 16th. Finally, Bank of America upgraded Radian Group from an "underperform" rating to a "buy" rating and raised their price target for the stock from $35.00 to $43.00 in a research note on Wednesday, April 29th.

Insiders Place Their Bets

In other Radian Group news, CEO Michael S. Weinbach purchased 120,487 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The stock was purchased at an average price of $33.89 per share, for a total transaction of $4,083,304.43. Following the purchase, the chief executive officer directly owned 120,487 shares in the company, valued at approximately $4,083,304.43. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Chairman Howard Bernard Culang sold 5,000 shares of the firm's stock in a transaction 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 in the company, valued at $422,164.40. The trade was a 30.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 30,516 shares of company stock worth $1,127,576. Corporate insiders own 2.03% of the company's stock.

Institutional Investors Weigh In On Radian Group

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Mercer Global Advisors Inc. ADV grew its holdings in shares of Radian Group by 0.9% during the third quarter. Mercer Global Advisors Inc. ADV now owns 33,365 shares of the insurance provider's stock worth $1,208,000 after buying an additional 288 shares during the last quarter. Hantz Financial Services Inc. lifted its position in Radian Group by 26.9% during the 4th quarter. Hantz Financial Services Inc. now owns 1,553 shares of the insurance provider's stock worth $56,000 after acquiring an additional 329 shares during the period. Smartleaf Asset Management LLC lifted its position in Radian Group by 14.6% during the 2nd quarter. Smartleaf Asset Management LLC now owns 2,696 shares of the insurance provider's stock worth $97,000 after acquiring an additional 344 shares during the period. HighTower Advisors LLC grew its stake in shares of Radian Group by 6.1% in the 4th quarter. HighTower Advisors LLC now owns 6,060 shares of the insurance provider's stock valued at $218,000 after purchasing an additional 349 shares during the last quarter. Finally, Jones Financial Companies Lllp increased its holdings in shares of Radian Group by 14.8% in the first quarter. Jones Financial Companies Lllp now owns 2,764 shares of the insurance provider's stock valued at $91,000 after purchasing an additional 357 shares during the period. 95.33% of the stock is owned by hedge funds and other institutional investors.

Radian Group Stock Down 1.8%

RDN stock traded down $0.71 during midday trading on Thursday, reaching $39.00. 40,347 shares of the company were exchanged, compared to its average volume of 1,336,151. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.58 and a current ratio of 0.58. Radian Group has a 1-year low of $31.50 and a 1-year high of $41.05. The stock's 50-day simple moving average is $36.52 and its 200 day simple moving average is $35.02. The company has a market cap of $5.19 billion, a price-to-earnings ratio of 9.61, a price-to-earnings-growth ratio of 0.99 and a beta of 0.72.

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 business had revenue of $466.34 million during the quarter, compared to analysts' expectations of $377.83 million. Radian Group had a net margin of 40.50% and a return on equity of 13.57%. The company's revenue for the quarter was up 46.6% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.99 EPS. On average, equities analysts forecast that Radian Group will post 5.17 earnings per share for the current year.

Radian Group Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 17th. Stockholders of record on Tuesday, June 2nd were given a dividend of $0.255 per share. The ex-dividend date was Tuesday, June 2nd. This represents a $1.02 dividend on an annualized basis and a dividend yield of 2.6%. 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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