Radian Group (NYSE:RDN) Releases Earnings Results, Beats Estimates By $0.10 EPS

Key Points

• Radian beat expectations, reporting $1.27 EPS versus $1.17 estimated, with a 46.99% net margin and a 13.07% return on equity.
• The stock rose to $35.75 on the news; the company has a market cap of about $4.82 billion, a P/E of 8.61 and a 12‑month trading range of $31.50–$38.84.
• Radian paid a quarterly dividend of $0.255 ($1.02 annualized, ~2.9% yield) while insiders sold 45,000 shares last quarter, institutions own ~95.3% of the stock, and analysts' average price target is $40.67 (Moderate Buy).

Radian Group (NYSE:RDN - Get Free Report) released its quarterly earnings data on Wednesday. The insurance provider reported $1.27 EPS for the quarter, beating analysts' consensus estimates of $1.17 by $0.10, Zacks reports. Radian Group had a net margin of 46.99% and a return on equity of 13.07%.

Radian Group Price Performance

Shares of RDN stock traded up $0.17 during trading hours on Wednesday, hitting $35.75. 1,550,395 shares of the company's stock were exchanged, compared to its average volume of 1,332,933. The company has a market capitalization of $4.82 billion, a PE ratio of 8.61, a PEG ratio of 1.37 and a beta of 0.76. Radian Group 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 $34.18 and its 200-day simple moving average is $34.39. The company has a current ratio of 3.40, a quick ratio of 3.40 and a debt-to-equity ratio of 0.23.

Radian Group Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Shareholders of record on Monday, February 23rd were paid a dividend of $0.255 per share. The ex-dividend date of this dividend was Monday, February 23rd. This represents a $1.02 annualized dividend and a dividend yield of 2.9%. Radian Group's dividend payout ratio (DPR) is 24.58%.

Insider Activity at Radian Group

In related news, EVP Edward J. Hoffman sold 15,000 shares of Radian Group stock in a transaction on Wednesday, April 29th. The shares were sold at an average price of $37.00, for a total value of $555,000.00. Following the transaction, the executive vice president directly owned 108,708 shares of the company's stock, valued at $4,022,196. The trade was a 12.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 45,000 shares of company stock worth $1,620,000 over the last quarter. Company insiders own 2.03% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in RDN. Balyasny Asset Management L.P. increased its stake in shares of Radian Group by 151.7% in the third quarter. Balyasny Asset Management L.P. now owns 1,873,049 shares of the insurance provider's stock worth $67,842,000 after buying an additional 1,128,852 shares during the period. Millennium Management LLC increased its stake in shares of Radian Group by 59.7% in the third quarter. Millennium Management LLC now owns 1,007,172 shares of the insurance provider's stock worth $36,480,000 after buying an additional 376,533 shares during the period. Dimensional Fund Advisors LP increased its stake in shares of Radian Group by 5.0% in the fourth quarter. Dimensional Fund Advisors LP now owns 5,717,423 shares of the insurance provider's stock worth $205,773,000 after buying an additional 274,222 shares during the period. Canada Pension Plan Investment Board purchased a new position in shares of Radian Group in the second quarter worth $9,048,000. Finally, Qube Research & Technologies Ltd purchased a new position in shares of Radian Group in the second quarter worth $8,726,000. 95.33% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the stock. Weiss Ratings lowered shares of Radian Group from a "buy (a-)" rating to a "buy (b+)" rating in a research report on Tuesday, January 13th. Bank of America upgraded shares of Radian Group from an "underperform" rating to a "buy" rating and lifted their target price for the company from $35.00 to $43.00 in a research report on Wednesday, April 29th. Keefe, Bruyette & Woods lifted their target price on shares of Radian Group from $42.00 to $43.00 and gave the company an "outperform" rating in a research report on Friday, April 10th. Barclays dropped their target price on shares of Radian Group from $40.00 to $37.00 and set an "equal weight" rating for the company in a research report on Monday, April 6th. Finally, Zacks Research lowered shares of Radian Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 20th. Four equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $40.67.

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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