Radian Group (NYSE:RDN) Stock Crosses Below 200 Day Moving Average – Here’s Why

Radian Group Inc. (NYSE:RDN) shares crossed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $35.17 and traded as low as $34.92. Radian Group shares last traded at $34.9640, with a volume of 1,606,183 shares trading hands.

Analyst Upgrades and Downgrades

RDN has been the topic of several analyst reports. Wall Street Zen cut Radian Group from a “buy” rating to a “hold” rating in a report on Saturday, October 10th. Keefe, Bruyette & Woods dropped their target price on Radian Group from $46.00 to $44.00 and set an “outperform” rating for the company in a research note on Tuesday, August 11th. Weiss Ratings downgraded Radian Group from a “buy (b+)” rating to a “buy (b)” rating in a research report on Tuesday, October 13th. Zacks Research raised Radian Group from a “strong sell” rating to a “hold” rating in a research note on Tuesday, October 13th. Finally, BTIG Research started coverage on Radian Group in a report on Tuesday, September 22nd. They issued a “buy” rating and a $48.00 price target for the company. Six investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $43.14.

Radian Group Stock Performance

The stock’s 50-day moving average is $34.87 and its 200-day moving average is $35.17. The stock has a market cap of $4.63 billion, a price-to-earnings ratio of 8.99, a P/E/G ratio of 0.89 and a beta of 0.71. The company has a current ratio of 0.60, a quick ratio of 0.60 and a debt-to-equity ratio of 0.14.

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

Radian Group Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 9th. Stockholders of record on Monday, August 24th were paid a $0.2550 dividend. This represents a $1.02 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend was Monday, August 24th. Radian Group’s dividend payout ratio (DPR) is currently 26.22%.

Insider Buying and Selling at Radian Group

In related news, EVP Meghan Bartholomew sold 7,812 shares of Radian Group stock in a transaction on 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 owned 39,203 shares in the company, valued at approximately $1,408,955.82. The trade was a 16.62% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 2.03% of the company’s stock.

Institutional Trading of Radian Group

Several large investors have recently added to or reduced their stakes in RDN. IFP Advisors Inc increased its position in shares of Radian Group by 109.3% during the second quarter. IFP Advisors Inc now owns 672 shares of the insurance provider’s stock worth $25,000 after acquiring an additional 351 shares during the last quarter. Global Retirement Partners LLC acquired a new position in shares of Radian Group in the second quarter worth about $37,000. Integrated Wealth Concepts LLC purchased a new position in Radian Group in the second quarter valued at about $44,000. Root Financial Partners LLC purchased a new position in Radian Group in the third quarter valued at about $36,000. Finally, Nykredit A S acquired a new stake in Radian Group during the 2nd quarter valued at approximately $55,000. 95.33% of the stock is currently owned by institutional investors and hedge funds.

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.