Radian Group Inc. (RDN) Upgraded at Zacks Investment Research
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. Moreover, redemption of surplus note enhances its liquidity position by $325 million. Also, the new capital plan includes buying back up to $125 million worth redeeming the remaining $196 million face value of its 9.00% Senior Notes, due 2017. 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. Also, the Zacks Consensus Estimates for 2016 and 2017 have also witnessed downward revisions over the last 60 days. With respect to earnings surprise, the insurer delivered a negative surprise in last two of the four quarters.”
RDN has been the topic of several other research reports. BTIG Research reaffirmed a buy rating and issued a $22.00 price target on shares of Radian Group in a research report on Wednesday, July 6th. FBR & Co raised their price target 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. Finally, TheStreet raised shares of Radian Group from a hold rating to a buy rating in a research report on Thursday, August 11th. Four research analysts have rated the stock with a hold rating and nine have given a buy rating to the company. The stock has an average rating of Buy and a consensus target price of $17.00.
Shares of Radian Group (NYSE:RDN) opened at 13.55 on Thursday. The company has a 50 day moving average price of $13.40 and a 200 day moving average price of $12.21. Radian Group has a 52 week low of $9.29 and a 52 week high of $17.00. The company has a market capitalization of $2.90 billion, a PE ratio of 10.16 and a beta of 2.27.
Radian Group (NYSE:RDN) last announced its quarterly earnings results on Thursday, July 28th. The company reported $0.38 earnings per share for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.38. Radian Group had a net margin of 25.42% and a return on equity of 12.64%. The business had revenue of $330.20 million for the quarter, compared to analysts’ expectations of $224.68 million. During the same quarter last year, the firm earned $0.40 EPS. On average, equities research analysts expect that Radian Group will post $1.55 earnings per share for the current year.
The business also recently declared a quarterly dividend, which was paid on Wednesday, September 7th. Stockholders of record on Monday, August 22nd were paid a dividend of $0.0025 per share. The ex-dividend date was Thursday, August 18th. This represents a $0.01 annualized dividend and a dividend yield of 0.07%. Radian Group’s payout ratio is currently 0.75%.
In related news, EVP Derek Brummer purchased 16,000 shares of the firm’s stock in a transaction dated Wednesday, August 10th. The stock was bought at an average price of $12.87 per share, for a total transaction of $205,920.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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 stock. Norges Bank acquired a new position in Radian Group during the fourth quarter worth $19,471,000. Sadoff Investment Management LLC raised its position in Radian Group by 14.5% in the first quarter. Sadoff Investment Management LLC now owns 905,110 shares of the company’s stock worth $11,223,000 after buying an additional 114,500 shares in the last quarter. Quantitative Systematic Strategies LLC raised its position in Radian Group by 165.5% in the first quarter. Quantitative Systematic Strategies LLC now owns 61,152 shares of the company’s stock worth $752,000 after buying an additional 38,118 shares in the last quarter. Glenmede Trust Co. NA raised its position in Radian Group by 3.9% in the first quarter. Glenmede Trust Co. NA now owns 2,674,013 shares of the company’s stock worth $33,156,000 after buying an additional 100,284 shares in the last quarter. Finally, Virginia Retirement System acquired a new position in Radian Group during the first quarter worth $284,000. Institutional investors and hedge funds own 93.40% of the company’s stock.
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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