Radian Group Inc. (RDN) Lowered to Hold at Zacks Investment Research
Radian Group Inc. (NYSE:RDN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “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. With respect to quarterly results, 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.”
Several other research analysts also recently commented on RDN. BTIG Research set a $22.00 target price on Radian Group and gave the stock a “buy” rating in a research note on Thursday, July 28th. FBR & Co boosted their price target on Radian Group from $14.00 to $16.00 and gave the stock an “outperform” rating in a report on Friday, July 29th. TheStreet upgraded Radian Group from a “hold” rating to a “buy” rating in a report on Thursday, August 11th. Bank of America Corp. began 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. Finally, Compass Point cut Radian Group from a “buy” rating to a “neutral” rating and set a $17.00 price target on the stock. in a report on Friday, October 28th. Four research analysts have rated the stock with a hold rating and eight have given a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and a consensus target price of $17.13.
Shares of Radian Group (NYSE:RDN) traded up 0.104% during mid-day trading on Wednesday, hitting $14.495. 1,680,541 shares of the company were exchanged. The company has a market capitalization of $3.11 billion, a price-to-earnings ratio of 10.266 and a beta of 2.30. Radian Group has a 12-month low of $9.29 and a 12-month high of $14.88. The firm has a 50 day moving average of $13.94 and a 200 day moving average of $12.76.
Radian Group (NYSE:RDN) last issued its earnings results on Thursday, October 27th. The company reported $0.41 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.40 by $0.01. The firm earned $320.88 million during the quarter, compared to the consensus estimate of $229.12 million. Radian Group had a return on equity of 12.73% and a net margin of 25.97%. The business’s quarterly revenue was up 7.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.31 earnings per share. Equities research analysts forecast that Radian Group will post $1.55 earnings per share for the current year.
The company also recently announced a quarterly dividend, which will be paid on Monday, December 5th. Stockholders of record on Monday, November 21st will be given a dividend of $0.0025 per share. This represents a $0.01 dividend on an annualized basis and a dividend yield of 0.07%. The ex-dividend date of this dividend is Thursday, November 17th. Radian Group’s payout ratio is 0.70%.
Several institutional investors have recently modified their holdings of the company. Sullivan Bruyette Speros & Blaney Inc. purchased a new position in shares of Radian Group during the second quarter worth $104,000. Landscape Capital Management L.L.C. purchased a new position in shares of Radian Group during the second quarter worth $106,000. Fox Run Management L.L.C. bought a new stake in Radian Group during the second quarter worth approximately $126,000. Genesee Valley Trust Co. raised its stake in Radian Group by 2.3% in the second quarter. Genesee Valley Trust Co. now owns 12,216 shares of the company’s stock worth $127,000 after buying an additional 274 shares during the last quarter. Finally, Profund Advisors LLC bought a new stake in Radian Group during the third quarter worth approximately $145,000. 93.54% of the stock is currently owned by institutional investors.
Radian Group Company Profile
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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