Radian Group (NYSE:RDN) Shares Gap Up – Should You Buy?

Radian Group Inc. (NYSE:RDN)’s stock price gapped up prior to trading on Friday. The stock had previously closed at $34.70, but opened at $36.03. Radian Group shares last traded at $35.7190, with a volume of 377,358 shares.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on RDN shares. Zacks Research upgraded shares of Radian Group from a “strong sell” rating to a “hold” rating in a report on Tuesday, October 13th. BTIG Research assumed coverage on Radian Group in a research note on Tuesday, September 22nd. They issued a “buy” rating and a $48.00 target price for the company. Weiss Ratings downgraded Radian Group from a “buy (b+)” rating to a “buy (b)” rating in a research note on Tuesday, October 13th. Barclays boosted their target price on Radian Group from $35.00 to $36.00 and gave the company an “equal weight” rating in a research report on Monday, October 5th. Finally, Wall Street Zen downgraded Radian Group from a “buy” rating to a “hold” rating in a research note on Saturday, October 10th. Six investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, Radian Group has an average rating of “Moderate Buy” and an average target price of $43.14.

Radian Group Price Performance

The company has a debt-to-equity ratio of 0.14, a current ratio of 0.60 and a quick ratio of 0.60. The business’s fifty day moving average price is $34.98 and its 200-day moving average price is $35.94. The stock has a market capitalization of $4.74 billion, a price-to-earnings ratio of 9.19, a PEG ratio of 0.85 and a beta of 0.71.

Radian Group (NYSE:RDN) last announced its earnings results on Thursday, August 6th. The insurance provider reported $1.14 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.34 by ($0.20). The company had revenue of $574.96 million for the quarter, compared to analysts’ expectations of $556.55 million. Radian Group had a net margin of 32.60% and a return on equity of 13.65%. The firm’s quarterly revenue was up 92.3% on a year-over-year basis. During the same period in the previous year, the firm earned $1.01 EPS. On average, research analysts forecast that Radian Group Inc. will post 4.85 EPS for the current year.

Radian Group Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 9th. Stockholders of record on Monday, August 24th were issued a $0.2550 dividend. The ex-dividend date was Monday, August 24th. This represents a $1.02 annualized dividend and a dividend yield of 2.8%. Radian Group’s dividend payout ratio is currently 26.22%.

Insider Activity at Radian Group

In related news, EVP Meghan Bartholomew sold 7,812 shares of the firm’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $35.94, for a total transaction of $280,763.28. Following the transaction, the executive vice president directly owned 39,203 shares of the company’s stock, valued at $1,408,955.82. This trade represents a 16.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.03% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Radian Group

Institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in shares of Radian Group during the 2nd quarter worth approximately $728,072,000. Donald Smith & CO. Inc. purchased a new stake in shares of Radian Group during the second quarter valued at approximately $163,104,000. Caisse de depot et placement du Quebec bought a new stake in Radian Group during the second quarter worth $89,334,000. Bruni J V & Co. Co. bought a new stake in Radian Group during the second quarter worth $59,355,376. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in Radian Group in the second quarter worth $45,553,000. 95.33% of the stock is owned by institutional investors.

About Radian Group

Radian Group Inc (NYSE:RDN) is a financial services company that provides mortgage insurance and related services to the residential real estate industry. Through its mortgage insurance subsidiaries, including Radian Guaranty Inc, the company helps lenders manage credit risk on residential mortgages, particularly loans made to borrowers with smaller down payments. Its insurance can also help borrowers obtain home financing without contributing a traditional 20% down payment.

Radian’s mortgage insurance business serves mortgage lenders, banks, credit unions and other housing finance participants primarily in the United States.