Radian Group (NYSE:RDN) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Radian Group from “buy” to “hold,” although the broader analyst consensus remains “Moderate Buy,” with five Buy ratings and three Hold ratings and an average price target of $43.17.
• Radian shares opened at $36.97, near their 50-day average of $36.91, while trading between a 52-week range of $31.50 and $41.05.
• The company’s latest quarterly results were mixed: revenue rose 92.3% year over year to $574.96 million and exceeded estimates, but EPS of $1.14 fell short of the $1.34 consensus forecast.

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

Several other equities research analysts have also issued reports on RDN. Barclays increased their target price on shares of Radian Group from $37.00 to $39.00 and gave the stock an "equal weight" rating in a report on Monday, May 11th. 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 target for the company. Weiss Ratings restated a "buy (b)" rating on shares of Radian Group in a report on Tuesday, June 16th. Bank of America raised Radian Group from an "underperform" rating to a "buy" rating and lifted their price objective for the stock from $35.00 to $43.00 in a research note on Wednesday, April 29th. Finally, Keefe, Bruyette & Woods increased their target price on Radian Group from $43.00 to $46.00 and gave the company an "outperform" rating in a research report on Thursday, June 25th. Five research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $43.17.

Radian Group Price Performance

Shares of RDN opened at $36.97 on Friday. The firm has a fifty day simple moving average of $36.91 and a two-hundred day simple moving average of $35.26. The firm has a market cap of $4.92 billion, a PE ratio of 9.50, a P/E/G ratio of 0.93 and a beta of 0.72. The company has a current ratio of 0.41, a quick ratio of 0.58 and a debt-to-equity ratio of 0.14. Radian Group has a 1-year low of $31.50 and a 1-year high of $41.05.

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

Insider Buying and Selling

In other news, CEO Michael S. Weinbach acquired 49,513 shares of the business's stock in a transaction on Tuesday, June 2nd. The shares were acquired at an average price of $34.04 per share, for a total transaction of $1,685,422.52. Following the completion of the transaction, the chief executive officer directly owned 170,000 shares of the company's stock, valued at approximately $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 at the SEC website. Also, Chairman Howard Bernard Culang sold 3,612 shares of the stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $36.00, for a total transaction of $130,032.00. Following the completion of 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. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 15,517 shares of company stock worth $557,610. 2.03% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Radian Group

Large investors have recently made changes to their positions in the company. Mercer Global Advisors Inc. ADV raised its position in Radian Group by 0.9% in the 3rd quarter. Mercer Global Advisors Inc. ADV now owns 33,365 shares of the insurance provider's stock worth $1,208,000 after purchasing an additional 288 shares during the period. Hantz Financial Services Inc. increased its position in shares of Radian Group by 26.9% during the fourth quarter. Hantz Financial Services Inc. now owns 1,553 shares of the insurance provider's stock worth $56,000 after acquiring an additional 329 shares during the period. Smartleaf Asset Management LLC raised its position in Radian Group by 14.6% during the 2nd quarter. Smartleaf Asset Management LLC now owns 2,696 shares of the insurance provider's stock valued at $97,000 after purchasing an additional 344 shares in the last quarter. HighTower Advisors LLC lifted its stake in Radian Group by 6.1% in the fourth quarter. HighTower Advisors LLC now owns 6,060 shares of the insurance provider's stock worth $218,000 after acquiring an additional 349 shares during the period. Finally, Jones Financial Companies Lllp boosted its stake in shares of Radian Group by 14.8% during the first quarter. Jones Financial Companies Lllp now owns 2,764 shares of the insurance provider's stock valued at $91,000 after purchasing an additional 357 shares in the last quarter. 95.33% of the stock is owned by hedge funds and other institutional investors.

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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