Radian Group (NYSE:RDN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday, Zacks.com reports.

According to Zacks, “Stricter regulations, rising mortgage rates and a competitive market pose risks for Radian Group. The company has seen its 2019 and 2020 estimates move down in the last 60 days. A Zacks Rank #4 and an Earnings ESP of 0.00% makes positive earnings surprise prediction difficult as it reports first quarter earnings on May 1. Nonetheless, shares of Radian have outperformed the industry year to date. Radian group is poised for growth on expansive mortgage and real estate service offerings, declining delinquency, lower levels of paid claims and an improving risk-based capital ratio. Business restructuring intensified focus on core business and services with higher-growth potential besides more predictable and recurring fee-based revenues. EBITDA margin for the Services segment is still expected in the 10-15% range. Radian Group also announced that it is well placed for complying with PMIERs 2.0.”

Separately, ValuEngine raised shares of Radian Group from a “sell” rating to a “hold” rating in a report on Tuesday, January 29th. One analyst has rated the stock with a sell rating, three have assigned a hold rating and four have issued a buy rating to the company. Radian Group presently has a consensus rating of “Hold” and an average price target of $22.14.

Shares of NYSE RDN traded up $0.28 during midday trading on Tuesday, reaching $22.96. The company had a trading volume of 60,635 shares, compared to its average volume of 1,339,990. The stock has a market cap of $4.85 billion, a P/E ratio of 8.54, a P/E/G ratio of 1.64 and a beta of 1.60. Radian Group has a 1 year low of $14.06 and a 1 year high of $23.14. The company has a current ratio of 1.40, a quick ratio of 1.40 and a debt-to-equity ratio of 0.30.

Radian Group (NYSE:RDN) last posted its quarterly earnings results on Friday, February 8th. The insurance provider reported $0.70 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.66 by $0.04. The business had revenue of $331.50 million during the quarter, compared to analysts’ expectations of $342.07 million. Radian Group had a net margin of 47.60% and a return on equity of 17.92%. The business’s quarterly revenue was up 4.3% on a year-over-year basis. During the same quarter last year, the company posted $0.51 earnings per share. As a group, sell-side analysts forecast that Radian Group will post 2.75 earnings per share for the current year.

Hedge funds and other institutional investors have recently bought and sold shares of the business. Nordea Investment Management AB raised its holdings in shares of Radian Group by 0.5% in the fourth quarter. Nordea Investment Management AB now owns 618,429 shares of the insurance provider’s stock worth $10,117,000 after buying an additional 2,904 shares during the last quarter. MetLife Investment Advisors LLC raised its holdings in shares of Radian Group by 49.1% during the third quarter. MetLife Investment Advisors LLC now owns 148,319 shares of the insurance provider’s stock worth $3,066,000 after purchasing an additional 48,851 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of Radian Group by 7.7% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,701,451 shares of the insurance provider’s stock worth $44,193,000 after purchasing an additional 193,296 shares during the last quarter. Renaissance Technologies LLC raised its holdings in shares of Radian Group by 58.9% during the third quarter. Renaissance Technologies LLC now owns 180,625 shares of the insurance provider’s stock worth $3,734,000 after purchasing an additional 66,955 shares during the last quarter. Finally, Meeder Asset Management Inc. raised its holdings in shares of Radian Group by 12.7% during the first quarter. Meeder Asset Management Inc. now owns 54,798 shares of the insurance provider’s stock worth $1,137,000 after purchasing an additional 6,193 shares during the last quarter. 94.50% of the stock is owned by institutional investors and hedge funds.

Radian Group Company Profile

Radian Group Inc, through its subsidiaries, engages in the mortgage and real estate services business in the United States. It operates in two segments, Mortgage Insurance and Services. The Mortgage Insurance segment offers credit-related insurance coverage, primarily through private mortgage insurance on residential first-lien mortgage loans, as well as other credit risk management solutions to mortgage lending institutions and mortgage credit investors.

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