Radian Group (NYSE:RDN) Rating Lowered to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Radian Group from buy to hold, even as the broader analyst view remains constructive with a consensus rating of Moderate Buy and an average target price of $43.17.
• Radian Group shares were up 0.3% to $37.78, putting the stock near its 52-week high of $38.90. The company also trades at a relatively low P/E of 9.30 with a market cap of about $5.02 billion.
• The company reported strong Q1 earnings, with EPS of $1.27 beating estimates and revenue of $466.34 million well above forecasts. Insider activity was mixed, with CEO Michael S. Weinbach buying shares while Chairman Howard Bernard Culang sold shares.

Radian Group (NYSE:RDN - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Sunday.

A number of other equities research analysts have also recently commented on the company. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Radian Group in a research note on Tuesday, June 16th. Bank of America raised Radian Group from an "underperform" rating to a "buy" rating and increased their target price for the company from $35.00 to $43.00 in a research note on Wednesday, April 29th. Barclays raised their target price on Radian Group from $37.00 to $39.00 and gave the stock an "equal weight" rating in a report on Monday, May 11th. Keefe, Bruyette & Woods boosted their target price on Radian Group from $43.00 to $46.00 and gave the stock an "outperform" rating in a research report on Thursday, June 25th. Finally, Royal Bank Of Canada assumed coverage on shares of Radian Group in a research report on Friday, May 22nd. They issued an "outperform" rating and a $47.00 price target on the stock. Five equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $43.17.

Radian Group Trading Up 0.3%

RDN stock traded up $0.12 during midday trading on Friday, reaching $37.78. The company's stock had a trading volume of 574,177 shares, compared to its average volume of 1,192,084. Radian Group has a 52 week low of $31.50 and a 52 week high of $38.90. The stock has a market cap of $5.02 billion, a PE ratio of 9.30, a price-to-earnings-growth ratio of 0.95 and a beta of 0.72. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 0.16. The business's 50-day simple moving average is $36.09 and its 200-day simple moving average is $34.81.

Radian Group (NYSE:RDN - Get Free Report) last issued its earnings results on Thursday, May 7th. The insurance provider reported $1.27 EPS for the quarter, beating the consensus estimate of $1.17 by $0.10. The company had revenue of $466.34 million during the quarter, compared to analysts' expectations 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 for the quarter was up 46.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.99 EPS. As a group, sell-side analysts expect that Radian Group will post 5.17 EPS for the current year.

Insider Buying and Selling

In other Radian Group news, CEO Michael S. Weinbach purchased 49,513 shares of the stock in a transaction on Tuesday, June 2nd. The stock was bought at an average cost of $34.04 per share, for a total transaction of $1,685,422.52. Following the completion of the acquisition, the chief executive officer directly owned 170,000 shares of the company's stock, valued at $5,786,800. The trade was a 41.09% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Chairman Howard Bernard Culang sold 3,612 shares of the firm's stock in a transaction dated 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 represents a 30.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 73,525 shares of company stock valued at $2,677,891. 2.03% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Northwestern Mutual Wealth Management Co. increased its position in shares of Radian Group by 178.9% during the third 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 in the last quarter. V Square Quantitative Management LLC bought a new stake in Radian Group in the 4th quarter valued at $29,000. Geneos Wealth Management Inc. lifted its position in Radian Group by 191.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 871 shares of the insurance provider's stock valued at $29,000 after acquiring an additional 572 shares in the last quarter. Fifth Third Bancorp boosted its stake in Radian Group by 65.8% in the 4th quarter. Fifth Third Bancorp now owns 907 shares of the insurance provider's stock worth $33,000 after purchasing an additional 360 shares during the period. Finally, Measured Wealth Private Client Group LLC acquired a new position in Radian Group in the 3rd quarter worth $34,000. 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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