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

Key Points

• Moderate Buy consensus from seven analysts (3 hold, 3 buy, 1 strong buy) with an average 12‑month price target of $40.20.
• Radian beat quarterly EPS estimates, reporting $1.16 vs. $1.11 expected with $300.51M in revenue (up 2.7% YoY), a 46.99% net margin and 13.07% return on equity.
• The company pays a quarterly dividend of $0.255 (annualized $1.02) equating to a 2.9% yield and a 24.58% payout ratio.

Shares of Radian Group Inc. (NYSE:RDN - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the seven brokerages that are covering the firm, Marketbeat Ratings reports. Three investment analysts have rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $40.20.

A number of research analysts recently weighed in on the stock. Roth Mkm reaffirmed a "buy" rating and issued a $45.00 price target on shares of Radian Group in a research note on Friday, January 2nd. Weiss Ratings lowered shares of Radian Group from a "buy (a-)" rating to a "buy (b+)" rating in a research note on Tuesday, January 13th. UBS Group decreased their price target on shares of Radian Group from $41.00 to $39.00 and set a "neutral" rating on the stock in a research note on Thursday, March 12th. Barclays decreased their price target on shares of Radian Group from $40.00 to $37.00 and set an "equal weight" rating on the stock in a research note on Monday, April 6th. Finally, Zacks Research upgraded shares of Radian Group from a "hold" rating to a "strong-buy" rating in a report on Friday, February 20th.

Radian Group Trading Down 0.3%

Shares of Radian Group stock opened at $35.27 on Tuesday. The firm has a market capitalization of $4.75 billion, a PE ratio of 8.50, a P/E/G ratio of 1.91 and a beta of 0.77. Radian Group has a twelve month low of $29.32 and a twelve month high of $38.84. The firm's 50-day moving average price is $33.69 and its 200 day moving average price is $34.27. The company has a current ratio of 3.40, a quick ratio of 3.40 and a debt-to-equity ratio of 0.23.

Radian Group (NYSE:RDN - Get Free Report) last issued its quarterly earnings results on Thursday, February 19th. The insurance provider reported $1.16 earnings per share for the quarter, beating analysts' consensus estimates of $1.11 by $0.05. The firm had revenue of $300.51 million for the quarter, compared to analyst estimates of $300.45 million. Radian Group had a net margin of 46.99% and a return on equity of 13.07%. Radian Group's quarterly revenue was up 2.7% compared to the same quarter last year. During the same period last year, the company posted $1.09 EPS. On average, sell-side analysts predict that Radian Group will post 4.72 EPS for the current fiscal year.

Radian Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, March 10th. Shareholders of record on Monday, February 23rd were issued a $0.255 dividend. The ex-dividend date was Monday, February 23rd. This represents a $1.02 dividend on an annualized basis and a yield of 2.9%. Radian Group's dividend payout ratio is presently 24.58%.

Insider Buying and Selling

In other Radian Group news, EVP Edward J. Hoffman sold 13,009 shares of the stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $35.00, for a total value of $455,315.00. Following the completion of the sale, the executive vice president owned 138,708 shares in the company, valued at approximately $4,854,780. This represents a 8.57% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 2.03% of the company's stock.

Institutional Trading of Radian Group

A number of hedge funds have recently bought and sold shares of the business. Louisiana State Employees Retirement System acquired a new stake in Radian Group in the 1st quarter valued at about $1,988,000. Corient Private Wealth LLC raised its holdings in Radian Group by 3.1% in the 4th quarter. Corient Private Wealth LLC now owns 21,249 shares of the insurance provider's stock valued at $765,000 after acquiring an additional 647 shares during the last quarter. Hsbc Holdings PLC raised its holdings in Radian Group by 23.1% in the 4th quarter. Hsbc Holdings PLC now owns 90,154 shares of the insurance provider's stock valued at $3,256,000 after acquiring an additional 16,895 shares during the last quarter. State of Tennessee Department of Treasury raised its holdings in Radian Group by 37.1% in the 4th quarter. State of Tennessee Department of Treasury now owns 57,009 shares of the insurance provider's stock valued at $1,876,000 after acquiring an additional 15,438 shares during the last quarter. Finally, Mackenzie Financial Corp raised its holdings in Radian Group by 172.6% in the 4th quarter. Mackenzie Financial Corp now owns 26,647 shares of the insurance provider's stock valued at $965,000 after acquiring an additional 16,871 shares during the last quarter. Institutional investors and hedge funds own 95.33% of the company's stock.

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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