Radian Group Inc. (NYSE:RDN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Tuesday. The brokerage currently has a $21.00 price target on the insurance provider’s stock. Zacks Investment Research‘s price objective points to a potential upside of 13.21% from the company’s previous close.
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%.”
Other analysts have also recently issued research reports about the company. ValuEngine cut Radian Group from a “strong-buy” rating to a “buy” rating in a research report on Thursday, September 7th. Barclays PLC reaffirmed an “overweight” rating and set a $24.00 price target (down previously from $25.00) on shares of Radian Group in a research report on Wednesday, August 2nd. Finally, BidaskClub raised Radian Group from a “sell” rating to a “hold” rating in a research report on Tuesday, June 13th. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating, seven have assigned a buy rating and one has given a strong buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus price target of $20.88.
Radian Group (RDN) traded up 0.997% during mid-day trading on Tuesday, reaching $18.735. The company had a trading volume of 606,631 shares. Radian Group has a 52 week low of $12.96 and a 52 week high of $19.87. The firm has a market capitalization of $4.03 billion, a PE ratio of 21.510 and a beta of 1.51. The stock’s 50-day moving average price is $17.60 and its 200 day moving average price is $17.32.
Radian Group (NYSE:RDN) last posted its quarterly earnings data on Tuesday, August 1st. The insurance provider reported $0.48 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.40 by $0.08. Radian Group had a return on equity of 12.81% and a net margin of 16.26%. The firm had revenue of $302.91 million during the quarter, compared to analysts’ expectations of $299.07 million. During the same quarter last year, the firm earned $0.38 EPS. The business’s quarterly revenue was up 4.9% on a year-over-year basis. On average, equities research analysts predict that Radian Group will post $1.72 EPS for the current year.
Radian Group announced that its Board of Directors has approved a share buyback program on Wednesday, August 9th that permits the company to buyback $50.00 million in shares. This buyback authorization permits the insurance provider to reacquire up to 1.3% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s board believes its stock is undervalued.
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In related news, CEO Richard G. Thornberry acquired 15,000 shares of the firm’s stock in a transaction dated Friday, August 18th. The stock was acquired at an average price of $16.78 per share, with a total value of $251,700.00. Following the acquisition, the chief executive officer now directly owns 15,000 shares in the company, valued at approximately $251,700. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Catherine Mary Jackson sold 17,130 shares of the business’s stock in a transaction dated Tuesday, August 15th. The shares were sold at an average price of $17.22, for a total value of $294,978.60. Following the completion of the transaction, the senior vice president now directly 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. Insiders own 1.83% of the company’s stock.
Several hedge funds have recently modified their holdings of the company. Vanguard Group Inc. lifted its holdings in shares of Radian Group by 5.0% in the 2nd quarter. Vanguard Group Inc. now owns 18,116,304 shares of the insurance provider’s stock valued at $296,201,000 after buying an additional 859,950 shares during the period. BlackRock Inc. lifted its holdings in shares of Radian Group by 24,173.9% in the 1st quarter. BlackRock Inc. now owns 14,125,455 shares of the insurance provider’s stock valued at $253,692,000 after buying an additional 14,067,263 shares during the period. LSV Asset Management lifted its holdings in shares of Radian Group by 0.6% in the 2nd quarter. LSV Asset Management now owns 10,409,782 shares of the insurance provider’s stock valued at $170,199,000 after buying an additional 58,304 shares during the period. State Street Corp lifted its holdings in shares of Radian Group by 7.3% in the 1st quarter. State Street Corp now owns 7,682,263 shares of the insurance provider’s stock valued at $137,976,000 after buying an additional 524,837 shares during the period. Finally, Northern Trust Corp lifted its holdings in shares of Radian Group by 24.6% in the 2nd quarter. Northern Trust Corp now owns 5,305,329 shares of the insurance provider’s stock valued at $86,742,000 after buying an additional 1,048,954 shares during the period. 90.02% of the stock is owned by institutional investors and hedge funds.
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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