Radian Group (NYSE:RDN) Rating Increased to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Radian Group to “buy” from “hold,” adding to a mixed but generally positive analyst backdrop. The stock now carries a consensus rating of “Moderate Buy” with a consensus price target of $43.17.
• Radian Group also reported strong quarterly results, posting $1.27 EPS versus the $1.17 estimate and revenue of $466.34 million, up 46.6% year over year. Shares were trading up 1.3% at $37.49, near their 52-week high of $38.84.
• Insider activity was mixed: the chairman sold shares, while CEO Michael S. Weinbach bought 49,513 shares worth about $1.69 million. Institutional ownership remains high, with 95.33% of the stock held by institutions and hedge funds.

Radian Group (NYSE:RDN - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

RDN has been the topic of several other research reports. UBS Group lowered their price objective 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. Weiss Ratings reissued a "buy (b)" rating on shares of Radian Group in a research note on Tuesday, June 16th. Keefe, Bruyette & Woods raised their target price on shares of Radian Group from $43.00 to $46.00 and gave the stock an "outperform" rating in a report on Thursday. Bank of America upgraded shares of Radian Group from an "underperform" rating to a "buy" rating and lifted their price target for the stock from $35.00 to $43.00 in a research report on Wednesday, April 29th. Finally, Zacks Research cut Radian Group from a "strong-buy" rating to a "hold" rating in a report on Monday, April 20th. Five investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $43.17.

Radian Group Trading Up 1.3%

Shares of RDN stock opened at $37.49 on Friday. The stock has a 50-day simple moving average of $35.66 and a 200 day simple moving average of $34.68. The stock has a market capitalization of $4.99 billion, a P/E ratio of 9.23, a P/E/G ratio of 0.93 and a beta of 0.73. Radian Group has a fifty-two week low of $31.50 and a fifty-two week high of $38.84. 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 issued 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. Radian Group had a net margin of 40.50% and a return on equity of 13.57%. The firm had revenue of $466.34 million for the quarter, compared to analysts' expectations of $377.83 million. During the same period in the previous year, the business earned $0.99 earnings per share. Radian Group's revenue for the quarter was up 46.6% compared to the same quarter last year. On average, sell-side analysts expect that Radian Group will post 5.17 earnings per share for the current fiscal year.

Insider Buying and Selling at Radian Group

In other news, 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 completion of the sale, the chairman owned 8,050 shares in the company, valued at $289,800. This represents a 30.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Michael S. Weinbach bought 49,513 shares of the firm's stock in a transaction dated Tuesday, June 2nd. The stock was acquired at an average cost of $34.04 per share, with a total value of $1,685,422.52. Following the transaction, the chief executive officer owned 170,000 shares of the company's stock, valued at $5,786,800. This trade represents a 41.09% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have sold 75,516 shares of company stock valued at $2,747,576 over the last three months. 2.03% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of RDN. Parallel Advisors LLC grew its position in Radian Group by 439.9% during the first quarter. Parallel Advisors LLC now owns 2,262 shares of the insurance provider's stock valued at $75,000 after purchasing an additional 1,843 shares in the last quarter. Segall Bryant & Hamill LLC acquired a new position in Radian Group in the 1st quarter valued at approximately $338,000. Bank of America Corp DE lifted its position in Radian Group by 26.1% in the 1st quarter. Bank of America Corp DE now owns 758,110 shares of the insurance provider's stock worth $25,078,000 after buying an additional 156,770 shares in the last quarter. RBF Capital LLC lifted its position in Radian Group by 16.7% in the 1st quarter. RBF Capital LLC now owns 140,000 shares of the insurance provider's stock worth $4,631,000 after buying an additional 20,000 shares in the last quarter. Finally, South Dakota Investment Council boosted its stake in shares of Radian Group by 28.3% during the 1st quarter. South Dakota Investment Council now owns 226,629 shares of the insurance provider's stock valued at $7,497,000 after buying an additional 50,026 shares during the period. 95.33% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.