Zacks Investment Research Downgrades Radian Group Inc. (RDN) to Hold
Radian Group Inc. (NYSE:RDN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Thursday.
According to Zacks, “Radian Group’s third-quarter 2016 earnings outperformed the Zacks Consensus Estimate and also improved year over year. Notably, the company witnessed the highest volume of new flow mortgage insurance business written in the third quarter of 2016. Radian Group is poised for long-term growth on expansive mortgage and real estate service offerings, declining delinquency, lower levels of paid claims and improving risk-based capital ratio. The company is on track to return to investment grade ratings with recent upgrade for Radian group and Radian Guaranty from S&P. Its initiatives to solidify the financial position and improved debt maturity profile bode well. However, stricter regulations, rising mortgage rates and a competitive market pose risks for the company.”
A number of other research firms have also recently issued reports on RDN. Compass Point cut Radian Group from a “buy” rating to a “neutral” rating and set a $17.00 target price on the stock. in a research report on Friday, October 28th. Bank of America Corp. started coverage on Radian Group in a report on Monday, October 17th. They set a “buy” rating and a $18.00 price target on the stock. FBR & Co restated a “buy” rating on shares of Radian Group in a report on Friday, October 28th. BTIG Research set a $22.00 price target on Radian Group and gave the stock a “buy” rating in a report on Thursday, September 15th. Finally, TheStreet upgraded Radian Group from a “hold” rating to a “buy” rating in a report on Thursday, August 11th. Three equities research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus price target of $17.13.
Shares of Radian Group (NYSE:RDN) opened at 14.67 on Thursday. The company’s 50-day moving average price is $13.75 and its 200-day moving average price is $12.66. The company has a market capitalization of $3.15 billion, a PE ratio of 10.39 and a beta of 2.30. Radian Group has a 1-year low of $9.29 and a 1-year high of $14.81.
Radian Group (NYSE:RDN) last released its earnings results on Thursday, October 27th. The company reported $0.41 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.40 by $0.01. Radian Group had a return on equity of 12.73% and a net margin of 25.97%. The firm had revenue of $320.88 million for the quarter, compared to analysts’ expectations of $229.12 million. During the same quarter in the previous year, the business posted $0.31 earnings per share. The business’s revenue for the quarter was up 7.9% on a year-over-year basis. On average, equities analysts expect that Radian Group will post $1.55 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Monday, December 5th. Shareholders of record on Monday, November 21st will be paid a $0.0025 dividend. This represents a $0.01 annualized dividend and a yield of 0.07%. The ex-dividend date is Thursday, November 17th. Radian Group’s dividend payout ratio (DPR) is presently 0.70%.
Institutional investors have recently modified their holdings of the stock. FMR LLC raised its position in shares of Radian Group by 1.9% in the second quarter. FMR LLC now owns 18,946,596 shares of the company’s stock valued at $197,423,000 after buying an additional 348,825 shares during the period. Vanguard Group Inc. raised its position in shares of Radian Group by 8.3% in the second quarter. Vanguard Group Inc. now owns 15,274,403 shares of the company’s stock valued at $159,160,000 after buying an additional 1,171,634 shares during the period. LSV Asset Management raised its position in shares of Radian Group by 1.0% in the third quarter. LSV Asset Management now owns 10,947,133 shares of the company’s stock valued at $148,333,000 after buying an additional 104,400 shares during the period. Price T Rowe Associates Inc. MD raised its position in shares of Radian Group by 14.6% in the third quarter. Price T Rowe Associates Inc. MD now owns 9,829,872 shares of the company’s stock valued at $133,195,000 after buying an additional 1,249,902 shares during the period. Finally, BlackRock Fund Advisors raised its position in shares of Radian Group by 8.4% in the third quarter. BlackRock Fund Advisors now owns 5,820,216 shares of the company’s stock valued at $78,864,000 after buying an additional 449,150 shares during the period. 93.54% of the stock is currently owned by hedge funds and other institutional investors.
About Radian Group
Radian Group Inc is a holding company that provides mortgage insurance, and products and services to the real estate and mortgage finance industries. The Company operates in two segments: Mortgage Insurance and Services. The Mortgage Insurance segment provides credit-related insurance coverage, principally through private mortgage insurance to mortgage lending institutions.
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