Radian Group (NYSE:RDN) Downgraded to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Radian Group from a “buy” to a “hold” rating, even though the broader analyst view remains somewhat positive with a consensus of “Moderate Buy.”
• Radian reported better-than-expected first-quarter results, posting EPS of $1.27 versus $1.17 expected and revenue of $466.34 million, up 46.6% from a year earlier.
• There was notable insider activity, including CEO Michael S. Weinbach buying 120,487 shares, while other executives sold shares; institutional ownership remains high at 95.33%.

Radian Group (NYSE:RDN - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Saturday.

RDN has been the subject of several other research reports. Bank of America raised 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. Barclays upped their price target on Radian Group from $37.00 to $39.00 and gave the company an "equal weight" rating in a report on Monday, May 11th. Keefe, Bruyette & Woods upped their price target on Radian Group from $42.00 to $43.00 and gave the company an "outperform" rating in a report on Friday, April 10th. UBS Group cut their price target on Radian Group from $41.00 to $39.00 and set a "neutral" rating for the company in a report on Thursday, March 12th. Finally, Royal Bank Of Canada initiated coverage on Radian Group in a report on Friday, May 22nd. They issued an "outperform" rating and a $47.00 price target for the company. Five investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $42.67.

Radian Group Price Performance

Shares of NYSE:RDN opened at $33.77 on Friday. The business has a 50 day moving average price of $35.26 and a 200 day moving average price of $34.68. Radian Group has a twelve month low of $31.50 and a twelve month high of $38.84. The company has a market cap of $4.49 billion, a price-to-earnings ratio of 8.32, a PEG ratio of 0.85 and a beta of 0.73. 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 (NYSE:RDN - Get Free Report) last announced its earnings results on Thursday, May 7th. The insurance provider reported $1.27 earnings per share for the quarter, beating the consensus estimate of $1.17 by $0.10. Radian Group had a return on equity of 13.57% and a net margin of 40.50%.The firm had revenue of $466.34 million during the quarter, compared to the consensus estimate of $377.83 million. During the same quarter in the prior year, the company earned $0.99 EPS. The firm's revenue for the quarter was up 46.6% compared to the same quarter last year. Research analysts predict that Radian Group will post 5.17 earnings per share for the current year.

Insiders Place Their Bets

In related news, CEO Michael S. Weinbach bought 120,487 shares of the company's stock in a transaction dated Monday, June 1st. The stock was acquired at an average cost of $33.89 per share, with a total value of $4,083,304.43. Following the acquisition, the chief executive officer owned 120,487 shares in the company, valued at approximately $4,083,304.43. This represents a ∞ increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Edward J. Hoffman sold 15,000 shares of the stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $38.00, for a total value of $570,000.00. Following the completion of the transaction, the executive vice president directly owned 93,708 shares of the company's stock, valued at approximately $3,560,904. The trade was a 13.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 75,516 shares of company stock worth $2,747,576 in the last 90 days. 2.03% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Radian Group

Large investors have recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. grew its position in Radian Group by 178.9% during 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. grew its position in Radian Group by 66.7% during 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 during the 4th quarter worth approximately $29,000. Geneos Wealth Management Inc. grew its position in Radian Group by 191.3% during 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 grew its position in Radian Group by 65.8% during 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. 95.33% of the stock is currently owned by institutional investors.

Radian Group Company Profile

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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