Radian Group (NYSE:RDN) CEO Michael Weinbach Purchases 49,513 Shares

Key Points

• CEO Michael Weinbach bought 49,513 Radian Group shares on June 2 at an average price of $34.04, a $1.69 million purchase that increased his direct holdings by 41.09% to 170,000 shares.
• Radian reported stronger-than-expected first-quarter results, with earnings of $1.27 per share versus the $1.17 estimate and revenue of $466.34 million, up 46.6% from a year earlier.
• The company also announced a quarterly dividend of $0.255 per share, payable June 17, which annualizes to $1.02 per share for a 3.0% yield.

Radian Group Inc. (NYSE:RDN - Get Free Report) CEO Michael Weinbach purchased 49,513 shares of the firm's stock in a transaction on Tuesday, June 2nd. The shares were acquired at an average cost of $34.04 per share, for a total transaction of $1,685,422.52. Following the completion of the purchase, 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 legal filing with the Securities & Exchange Commission, which is available at the SEC website.

Radian Group Price Performance

Shares of RDN stock traded up $0.07 during trading hours on Tuesday, hitting $33.86. 1,788,624 shares of the company's stock were exchanged, compared to its average volume of 1,334,824. The company has a market capitalization of $4.50 billion, a PE ratio of 8.34, a PEG ratio of 0.87 and a beta of 0.73. Radian Group Inc. has a 12-month low of $31.50 and a 12-month high of $38.84. The business's 50 day simple moving average is $35.19 and its 200-day simple moving average is $34.72. 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 posted its quarterly earnings results on Thursday, May 7th. The insurance provider reported $1.27 EPS for the quarter, topping the consensus estimate of $1.17 by $0.10. The firm had revenue of $466.34 million for the quarter, compared to the consensus estimate of $377.83 million. Radian Group had a net margin of 40.50% and a return on equity of 13.57%. The business's revenue was up 46.6% compared to the same quarter last year. During the same period last year, the firm posted $0.99 earnings per share. On average, equities research analysts anticipate that Radian Group Inc. will post 5.11 earnings per share for the current year.

Radian Group Dividend Announcement

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

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on RDN shares. Barclays increased their target price on Radian Group from $37.00 to $39.00 and gave the company an "equal weight" rating in a report on Monday, May 11th. Royal Bank Of Canada started coverage on shares of Radian Group in a report on Friday, May 22nd. They set an "outperform" rating and a $47.00 price target for the company. Bank of America upgraded shares of Radian Group from an "underperform" rating to a "buy" rating and upped their price target for the company from $35.00 to $43.00 in a report on Wednesday, April 29th. Zacks Research lowered shares of Radian Group from a "strong-buy" rating to a "hold" rating in a report on Monday, April 20th. Finally, Wall Street Zen upgraded shares of Radian Group from a "hold" rating to a "buy" rating in a report on Saturday, May 16th. Five investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Radian Group currently has an average rating of "Moderate Buy" and an average target price of $42.67.

Institutional Investors Weigh In On Radian Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its holdings in Radian Group by 2.7% during the 3rd quarter. Vanguard Group Inc. now owns 16,272,597 shares of the insurance provider's stock valued at $589,393,000 after buying an additional 427,473 shares during the last quarter. Charles Schwab Investment Management Inc. raised its holdings in Radian Group by 1.1% during 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 buying an additional 63,437 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in Radian Group by 4.0% during the 1st 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. American Century Companies Inc. increased its position in Radian Group by 4.4% during the 3rd quarter. American Century Companies Inc. now owns 4,019,483 shares of the insurance provider's stock valued at $145,586,000 after purchasing an additional 171,049 shares during the period. Finally, Donald Smith & CO. Inc. increased its position in Radian Group by 43.7% during the 4th quarter. Donald Smith & CO. Inc. now owns 3,012,255 shares of the insurance provider's stock valued at $108,411,000 after purchasing an additional 916,003 shares during the period. 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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