Zacks Investment Research upgraded shares of Radian Group Inc. (NYSE:RDN) from a hold rating to a buy rating in a report issued on Tuesday morning. The brokerage currently has $21.00 target price 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 research analysts have also commented on the stock. ValuEngine raised shares of Radian Group from a buy rating to a strong-buy rating in a research note on Tuesday, September 26th. Barclays PLC reissued an overweight rating and issued a $24.00 price objective (down previously from $25.00) on shares of Radian Group in a research note on Wednesday, August 2nd. Finally, BidaskClub downgraded shares of Radian Group from a hold rating to a sell rating in a research note on Saturday, June 24th. One equities research analyst has rated the stock with a sell rating, one has given a hold rating, seven have given a buy rating and one has given a strong buy rating to the company’s stock. The stock has a consensus rating of Buy and a consensus price target of $20.88.
Shares of Radian Group (NYSE RDN) traded up 0.32% during midday trading on Tuesday, hitting $18.83. 72,857 shares of the stock traded hands. The stock has a 50-day moving average of $17.67 and a 200-day moving average of $17.32. The company has a market cap of $4.05 billion, a price-to-earnings ratio of 21.62 and a beta of 1.51. Radian Group has a 52-week low of $12.96 and a 52-week high of $19.87.
Radian Group (NYSE:RDN) last posted its quarterly earnings data on Tuesday, August 1st. The insurance provider reported $0.48 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.40 by $0.08. Radian Group had a net margin of 16.26% and a return on equity of 12.81%. The business had revenue of $302.91 million during the quarter, compared to analyst estimates of $299.07 million. During the same quarter last year, the firm posted $0.38 earnings per share. The business’s revenue for the quarter was up 4.9% compared to the same quarter last year. On average, equities analysts predict that Radian Group will post $1.72 earnings per share for the current fiscal year.
Radian Group declared that its Board of Directors has initiated a share repurchase program on Wednesday, August 9th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the insurance provider to reacquire up to 1.3% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s leadership believes its shares are undervalued.
In related news, CEO Richard G. Thornberry acquired 5,000 shares of Radian Group stock in a transaction dated Monday, August 21st. The stock was acquired at an average price of $16.54 per share, for a total transaction of $82,700.00. Following the transaction, the chief executive officer now owns 20,000 shares of the company’s stock, valued at $330,800. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, SVP Catherine Mary Jackson sold 17,130 shares of the business’s stock in a transaction that occurred on Tuesday, August 15th. The stock was sold at an average price of $17.22, for a total transaction of $294,978.60. Following the sale, the senior vice president now 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. 1.83% of the stock is owned by insiders.
Several large investors have recently modified their holdings of RDN. Bank of New York Mellon Corp lifted its position in shares of Radian Group by 5.0% during the 1st quarter. Bank of New York Mellon Corp now owns 1,249,441 shares of the insurance provider’s stock worth $22,441,000 after buying an additional 58,956 shares during the last quarter. UBS Asset Management Americas Inc. lifted its position in shares of Radian Group by 27.9% during the 1st quarter. UBS Asset Management Americas Inc. now owns 139,510 shares of the insurance provider’s stock worth $2,506,000 after buying an additional 30,420 shares during the last quarter. Karp Capital Management Corp purchased a new stake in shares of Radian Group during the 1st quarter worth approximately $593,000. Parametric Portfolio Associates LLC lifted its position in shares of Radian Group by 21.2% during the 1st quarter. Parametric Portfolio Associates LLC now owns 388,801 shares of the insurance provider’s stock worth $6,983,000 after buying an additional 67,879 shares during the last quarter. Finally, Oxford Asset Management purchased a new stake in shares of Radian Group during the 1st quarter worth approximately $274,000. Institutional investors and hedge funds own 90.02% of the company’s stock.
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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