Zacks Investment Research Upgrades Radian Group (RDN) to Strong-Buy
Zacks Investment Research upgraded shares of Radian Group (NYSE:RDN) from a hold rating to a strong-buy rating in a report issued on Thursday morning. The firm currently has $24.00 target price on the insurance provider’s stock.
According to Zacks, “Shares of Radian have outperformed the insurance industry in a year. It is poised for growth on expansive mortgage and real estate service offerings, declining delinquency, lower levels of paid claims and improving risk-based capital ratio. Radian Group is restructuring its business by intensifying focus on core business and services with higher-growth potential besides more predictable and recurring fee-based revenues. In its recent endeavor, it divested Clayton EuroRisk to focus on core business. Radian intends to position its Service segment for continued profitability. EBITDA margin for the Services segment is expected in 10-15% range over time. The company’s initiatives to solidify the capital position by extending debt maturities and enhancing financial flexibility bode well. However, stricter regulations, rising mortgage rates and a competitive market pose as risks. Restructuring cost is estimated to be $20 million.”
Several other equities research analysts have also recently weighed in on RDN. ValuEngine cut shares of Radian Group from a strong-buy rating to a buy rating in a research report on Thursday, September 7th. Compass Point reiterated a neutral rating and set a $21.25 price objective on shares of Radian Group in a research report on Saturday, October 14th. BTIG Research reissued a buy rating and set a $22.00 target price on shares of Radian Group in a research note on Sunday, October 15th. Susquehanna Bancshares set a $22.00 target price on shares of Radian Group and gave the stock a buy rating in a research note on Monday, October 16th. Finally, Deutsche Bank increased their target price on shares of Radian Group from $21.00 to $23.00 and gave the stock a buy rating in a research note on Wednesday, October 25th. One research analyst has rated the stock with a sell rating, two have given a hold rating, eight have given a buy rating and two have given a strong buy rating to the company’s stock. The stock presently has an average rating of Buy and an average price target of $23.89.
Radian Group (RDN) traded up $0.49 on Thursday, hitting $21.47. 2,097,927 shares of the stock traded hands, compared to its average volume of 1,342,825. Radian Group has a 52 week low of $15.58 and a 52 week high of $22.66. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.23 and a current ratio of 1.23. The firm has a market capitalization of $4,630.00, a PE ratio of 27.18, a PEG ratio of 1.93 and a beta of 1.57.
Radian Group (NYSE:RDN) last posted its quarterly earnings data on Thursday, October 26th. The insurance provider reported $0.46 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.42 by $0.04. Radian Group had a net margin of 14.88% and a return on equity of 12.99%. The company had revenue of $312.05 million during the quarter, compared to analysts’ expectations of $321.10 million. During the same period in the prior year, the company posted $0.41 earnings per share. Radian Group’s revenue for the quarter was down 2.8% compared to the same quarter last year. equities research analysts anticipate that Radian Group will post 1.75 EPS for the current fiscal year.
Several institutional investors and hedge funds have recently added to or reduced their stakes in RDN. Wealthcare Advisory Partners LLC bought a new position in shares of Radian Group during the third quarter valued at about $110,000. Zurcher Kantonalbank Zurich Cantonalbank lifted its position in shares of Radian Group by 11.5% during the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 7,781 shares of the insurance provider’s stock valued at $127,000 after purchasing an additional 803 shares in the last quarter. Skba Capital Management LLC bought a new position in shares of Radian Group during the second quarter valued at about $170,000. Zacks Investment Management bought a new position in shares of Radian Group during the second quarter valued at about $175,000. Finally, ETRADE Capital Management LLC bought a new position in shares of Radian Group during the second quarter valued at about $183,000. 91.43% of the stock is currently owned by institutional investors.
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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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