Radian Group Inc. (RDN) Upgraded at Zacks Investment Research
Zacks Investment Research upgraded shares of Radian Group Inc. (NYSE:RDN) from a hold rating to a buy rating in a research note released on Tuesday. The firm currently has $21.00 price target on the insurance provider’s stock.
According to Zacks, “Shares of Radian Group have outperformed the insurance industry in a year. 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 has received rating upgrades owing to a string of capital takes undertaken by the company and is thus on track to return to an investment grade rating. 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 Radian Group. The company expects expenses to be between $62 million and $66 million each quarter. Radian is set to announce third quarter result on Oct 26. Our proven model conclusively show that the company is likely to beat on earnings this time because it has a right combination of Zacks Rank #2 and an Earnings ESP of +1.16%.”
Several other analysts have also issued reports on the company. BidaskClub lowered Radian Group from a hold rating to a sell rating in a report on Saturday, June 24th. ValuEngine lowered Radian Group from a strong-buy rating to a buy rating in a report on Thursday, September 7th. Finally, Barclays PLC reissued an overweight rating and set a $24.00 price target (down previously from $25.00) on shares of Radian Group in a report on Wednesday, August 2nd. One equities research analyst has rated the stock with a sell rating, one has given a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The company presently has a consensus rating of Buy and a consensus target price of $20.88.
Radian Group (NYSE:RDN) traded up 1.48% on Tuesday, hitting $19.25. The stock had a trading volume of 819,963 shares. The company has a market capitalization of $4.14 billion, a price-to-earnings ratio of 22.10 and a beta of 1.51. Radian Group has a 52 week low of $12.96 and a 52 week high of $19.87. The firm has a 50-day moving average of $17.76 and a 200 day moving average of $17.35.
Radian Group (NYSE:RDN) last released its quarterly earnings results on Tuesday, August 1st. The insurance provider reported $0.48 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.40 by $0.08. Radian Group had a return on equity of 12.81% and a net margin of 16.26%. The business had revenue of $302.91 million during the quarter, compared to analyst estimates of $299.07 million. During the same quarter in the previous year, the company posted $0.38 earnings per share. Radian Group’s revenue for the quarter was up 4.9% on a year-over-year basis. On average, analysts predict that Radian Group will post $1.72 earnings per share for the current year.
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Radian Group declared that its board has authorized a share repurchase program on Wednesday, August 9th that allows the company to repurchase $50.00 million in shares. This repurchase authorization allows the insurance provider to reacquire up to 1.3% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.
In other Radian Group news, CEO Richard G. Thornberry acquired 15,000 shares of the company’s stock in a transaction dated Friday, August 18th. The stock was purchased at an average price of $16.78 per share, with a total value of $251,700.00. Following the completion of the purchase, the chief executive officer now directly owns 15,000 shares in the company, valued at approximately $251,700. The acquisition was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, SVP Catherine Mary Jackson sold 17,130 shares of the company’s stock in a transaction dated Tuesday, August 15th. The stock was sold at an average price of $17.22, for a total value of $294,978.60. Following the completion of the transaction, the senior vice president now directly owns 80,720 shares of the company’s stock, valued at approximately $1,389,998.40. The disclosure for this sale can be found here. Corporate insiders own 1.83% of the company’s stock.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bank of America Corp DE boosted its stake in shares of Radian Group by 4.4% in the first quarter. Bank of America Corp DE now owns 1,337,584 shares of the insurance provider’s stock worth $24,023,000 after acquiring an additional 56,926 shares during the period. SG Americas Securities LLC boosted its stake in shares of Radian Group by 116.7% in the second quarter. SG Americas Securities LLC now owns 66,097 shares of the insurance provider’s stock worth $1,081,000 after acquiring an additional 35,595 shares during the period. California Public Employees Retirement System boosted its stake in shares of Radian Group by 1.3% in the first quarter. California Public Employees Retirement System now owns 415,200 shares of the insurance provider’s stock worth $7,457,000 after acquiring an additional 5,500 shares during the period. Nuveen Asset Management LLC boosted its stake in shares of Radian Group by 48.6% in the first quarter. Nuveen Asset Management LLC now owns 1,586,624 shares of the insurance provider’s stock worth $28,496,000 after acquiring an additional 518,648 shares during the period. Finally, Denver Investment Advisors LLC boosted its stake in shares of Radian Group by 35.5% in the second quarter. Denver Investment Advisors LLC now owns 1,765,177 shares of the insurance provider’s stock worth $28,860,000 after acquiring an additional 462,888 shares during the period. 90.02% of the stock is owned by hedge funds and other institutional investors.
Radian Group Company Profile
Radian Group Inc is an insurance 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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