Zacks Investment Research Upgrades Radian Group Inc. (RDN) to Buy
Radian Group Inc. (NYSE:RDN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Friday. The firm presently has a $16.00 price target on the stock. Zacks Investment Research’s price target indicates a potential upside of 9.63% from the stock’s current price.
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.”
RDN has been the topic of several other reports. BTIG Research set a $22.00 price objective on shares of Radian Group and gave the company a “buy” rating in a research report on Thursday, July 28th. FBR & Co lifted their price objective on shares of Radian Group from $14.00 to $16.00 and gave the company an “outperform” rating in a research report on Friday, July 29th. TheStreet upgraded shares of Radian Group from a “hold” rating to a “buy” rating in a research report on Thursday, August 11th. Bank of America Corp. began coverage on shares of Radian Group in a research report on Monday, October 17th. They issued a “buy” rating and a $18.00 price objective on the stock. Finally, Compass Point downgraded shares of Radian Group from a “buy” rating to a “neutral” rating and set a $17.00 price objective on the stock. in a research report on Friday, October 28th. Three equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the company. Radian Group has an average rating of “Buy” and a consensus price target of $17.04.
Shares of Radian Group (NYSE:RDN) opened at 14.54 on Friday. The stock has a market cap of $3.12 billion, a P/E ratio of 10.30 and a beta of 2.30. Radian Group has a one year low of $9.29 and a one year high of $14.88. The firm has a 50 day moving average of $14.05 and a 200 day moving average of $12.82.
Radian Group (NYSE:RDN) last posted its quarterly earnings results on Thursday, October 27th. The company reported $0.41 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.40 by $0.01. Radian Group had a net margin of 25.97% and a return on equity of 12.73%. The company had revenue of $320.88 million for the quarter, compared to the consensus estimate of $229.12 million. During the same period last year, the firm posted $0.31 EPS. The company’s revenue for the quarter was up 7.9% on a year-over-year basis. On average, equities research analysts predict that Radian Group will post $1.55 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Monday, December 5th. Stockholders of record on Monday, November 21st will be paid a $0.0025 dividend. The ex-dividend date of this dividend is Thursday, November 17th. This represents a $0.01 annualized dividend and a dividend yield of 0.07%. Radian Group’s dividend payout ratio is currently 0.70%.
Institutional investors have recently made changes to their positions in the company. California State Teachers Retirement System boosted its position in shares of Radian Group by 17.5% in the second quarter. California State Teachers Retirement System now owns 452,298 shares of the company’s stock valued at $4,713,000 after buying an additional 67,238 shares in the last quarter. Nordea Investment Management AB boosted its position in shares of Radian Group by 73.2% in the second quarter. Nordea Investment Management AB now owns 316,400 shares of the company’s stock valued at $3,297,000 after buying an additional 133,700 shares during the last quarter. ClariVest Asset Management LLC purchased a new position in shares of Radian Group during the second quarter valued at approximately $936,000. Genesee Valley Trust Co. boosted its position in shares of Radian Group by 2.3% in the second quarter. Genesee Valley Trust Co. now owns 12,216 shares of the company’s stock valued at $127,000 after buying an additional 274 shares during the last quarter. Finally, Strs Ohio boosted its position in shares of Radian Group by 22.8% in the second quarter. Strs Ohio now owns 18,300 shares of the company’s stock valued at $190,000 after buying an additional 3,400 shares during the last quarter. 93.31% of the stock is currently owned by 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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