Radian Group (NYSE:RDN) Given New $44.00 Price Target at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods lowered Radian Group’s price target from $46 to $44 while maintaining an “outperform” rating, implying roughly 20.55% upside from the prior close.
• Analyst sentiment remains moderately positive, with five Buy ratings and three Holds; the consensus target is $42.17. Radian recently reported $1.14 in quarterly EPS, missing estimates, although revenue rose 92.3% year over year to $574.96 million.
• Radian shares opened at $36.50, with a $4.85 billion market capitalization and a 52-week range of $31.50 to $41.05. Institutional investors own 95.33% of the stock, while the CEO recently purchased more than $1.68 million in shares.

Radian Group (NYSE:RDN - Get Free Report) had its price objective reduced by stock analysts at Keefe, Bruyette & Woods from $46.00 to $44.00 in a research report issued on Tuesday,Benzinga reports. The brokerage presently has an "outperform" rating on the insurance provider's stock. Keefe, Bruyette & Woods' price objective suggests a potential upside of 20.55% from the stock's previous close.

Several other analysts have also recently weighed in on RDN. Barclays dropped their price objective on Radian Group from $39.00 to $35.00 and set an "equal weight" rating for the company in a report on Monday. Bank of America raised shares of Radian Group from an "underperform" rating to a "buy" rating and lifted their target price for the stock from $35.00 to $43.00 in a report on Wednesday, April 29th. Royal Bank Of Canada assumed coverage on Radian Group in a research note on Friday, May 22nd. They set an "outperform" rating and a $47.00 price objective for the company. Wall Street Zen cut Radian Group from a "buy" rating to a "hold" rating in a report on Sunday. Finally, Zacks Research cut shares of Radian Group from a "strong-buy" rating to a "hold" rating in a report on Monday, April 20th. Five equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $42.17.

Radian Group Price Performance

Shares of RDN stock opened at $36.50 on Tuesday. The stock's fifty day moving average is $36.96 and its 200-day moving average is $35.30. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.58 and a current ratio of 0.41. The stock has a market capitalization of $4.85 billion, a PE ratio of 9.38, a PEG ratio of 0.88 and a beta of 0.72. Radian Group has a 52 week low of $31.50 and a 52 week high of $41.05.

Radian Group (NYSE:RDN - Get Free Report) last announced its earnings results on Wednesday, August 5th. The insurance provider reported $1.14 earnings per share for the quarter, missing analysts' consensus estimates of $1.34 by ($0.20). The business had revenue of $574.96 million during the quarter, compared to analyst estimates of $556.55 million. Radian Group had a net margin of 32.60% and a return on equity of 13.65%. The business's quarterly revenue was up 92.3% compared to the same quarter last year. During the same quarter last year, the business posted $1.01 earnings per share. Equities research analysts expect that Radian Group will post 4.93 EPS for the current fiscal year.

Insider Buying and Selling at Radian Group

In related news, CEO Michael S. Weinbach bought 49,513 shares of the business's stock in a transaction dated 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 transaction, the chief executive officer owned 170,000 shares in the company, valued at $5,786,800. The trade was a 41.09% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Chairman Howard Bernard Culang sold 3,612 shares of the stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $36.00, for a total value of $130,032.00. Following the sale, the chairman directly owned 8,050 shares in the company, valued at approximately $289,800. This trade represents a 30.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 15,517 shares of company stock worth $557,610. Insiders own 2.03% of the company's stock.

Institutional Trading of Radian Group

A number of institutional investors and hedge funds have recently made changes to their positions in RDN. BlackRock Inc. bought a new stake in Radian Group during the 2nd quarter worth $728,072,000. Charles Schwab Investment Management Inc. boosted its stake in shares of Radian Group by 1.1% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 5,959,463 shares of the insurance provider's stock valued at $214,481,000 after purchasing an additional 63,437 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Radian Group by 4.0% during the first quarter. Dimensional Fund Advisors LP now owns 5,948,335 shares of the insurance provider's stock worth $196,773,000 after purchasing an additional 230,912 shares during the last quarter. Donald Smith & CO. Inc. increased its stake in shares of Radian Group by 43.7% in the fourth quarter. Donald Smith & CO. Inc. now owns 3,012,255 shares of the insurance provider's stock valued at $108,411,000 after buying an additional 916,003 shares during the period. Finally, Balyasny Asset Management L.P. increased its stake in shares of Radian Group by 16.8% in the fourth quarter. Balyasny Asset Management L.P. now owns 2,188,624 shares of the insurance provider's stock valued at $78,769,000 after buying an additional 315,575 shares during the period. Institutional investors 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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