Wall Street Zen Upgrades Radian Group (NYSE:RDN) to Buy

Key Points

• Wall Street Zen upgraded Radian Group to “buy” from “hold.” The broader analyst consensus is “Moderate Buy,” with five Buy ratings, three Holds, and an average price target of $43.17.
• Radian reported strong quarterly results, posting $1.27 in EPS versus the $1.17 consensus estimate and $466.34 million in revenue, up 46.6% year over year.
• Shares opened at $39.05, near the consensus target, while CEO Michael Weinbach purchased roughly $4.1 million of stock; institutional investors own 95.33% of the company.

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

Several other research firms also recently weighed in on RDN. Barclays upped their price objective 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. Keefe, Bruyette & Woods boosted their target price on shares of Radian Group from $43.00 to $46.00 and gave the stock an "outperform" rating in a research report on Thursday, June 25th. Bank of America upgraded shares of Radian Group from an "underperform" rating to a "buy" rating and upped their target price for the stock from $35.00 to $43.00 in a report on Wednesday, April 29th. Zacks Research cut shares of Radian Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 20th. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Radian Group in a research note on Tuesday, June 16th. Five equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, Radian Group presently has a consensus rating of "Moderate Buy" and an average price target of $43.17.

Radian Group Trading Up 0.6%

Shares of Radian Group stock opened at $39.05 on Friday. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.58 and a current ratio of 0.58. Radian Group has a 52 week low of $31.50 and a 52 week high of $41.05. The stock has a 50 day moving average price of $36.61 and a two-hundred day moving average price of $35.07. The stock has a market capitalization of $5.19 billion, a PE ratio of 9.62, a price-to-earnings-growth ratio of 0.98 and a beta of 0.72.

Radian Group (NYSE:RDN - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The insurance provider reported $1.27 EPS for the quarter, beating the consensus estimate of $1.17 by $0.10. Radian Group had a return on equity of 13.57% and a net margin of 40.50%.The firm had revenue of $466.34 million during the quarter, compared to the consensus estimate of $377.83 million. During the same quarter in the previous year, the company posted $0.99 earnings per share. The company's quarterly revenue was up 46.6% on a year-over-year basis. As a group, equities analysts anticipate 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, CEO Michael S. Weinbach acquired 120,487 shares of Radian Group stock in a transaction on Monday, June 1st. The stock was acquired at an average cost of $33.89 per share, with a total value of $4,083,304.43. Following the transaction, the chief executive officer owned 120,487 shares of the company's stock, valued at approximately $4,083,304.43. This trade represents a ∞ increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Margaret Anne Leyden sold 2,070 shares of the stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $34.59, for a total transaction of $71,601.30. Following the completion of the sale, the director owned 6,864 shares of the company's stock, valued at approximately $237,425.76. This trade represents a 23.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 30,516 shares of company stock valued at $1,127,576 in the last quarter. 2.03% of the stock is owned by company insiders.

Institutional Trading of Radian Group

A number of institutional investors and hedge funds have recently modified their holdings of the business. Northwestern Mutual Wealth Management Co. boosted its position in Radian Group by 178.9% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 742 shares of the insurance provider's stock worth $27,000 after purchasing an additional 476 shares during the last quarter. V Square Quantitative Management LLC purchased a new stake in shares of Radian Group during the 4th quarter valued at $29,000. Geneos Wealth Management Inc. raised its stake in shares of Radian Group by 191.3% during the 1st quarter. Geneos Wealth Management Inc. now owns 871 shares of the insurance provider's stock worth $29,000 after purchasing an additional 572 shares during the period. Fifth Third Bancorp raised its stake in shares of Radian Group by 65.8% during 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 purchased a new position in shares of Radian Group in the 3rd quarter worth about $34,000. 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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