Radian Group (RDN) Stock Rating Lowered by Zacks Investment Research

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

According to Zacks, “Shares of Radian have underperformed the insurance industry year to date. Also, the company witnessed its 2018 and 2019 estimates move south over the last 60 days. Stricter regulations, rising mortgage rates and a competitive market pose as risks. Nonetheless, 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. It is restructuring its business by intensifying focus on core business and services with higher-growth potential besides more predictable and recurring fee-based revenues. Radian intends to position its Service segment for continued profitability. EBITDA margin for the Services segment is still expected in the 10-15% range and earnings to grow an annual run rate of $150-$175 million, beginning in the second half of 2018.”

Other equities research analysts have also recently issued research reports about the stock. Deutsche Bank reduced their target price on shares of Radian Group from $30.00 to $26.00 and set a “buy” rating for the company in a research note on Tuesday, April 10th. ValuEngine cut shares of Radian Group from a “strong-buy” rating to a “buy” rating in a research note on Wednesday, March 14th. TheStreet cut shares of Radian Group from a “b-” rating to a “c+” rating in a research note on Tuesday, April 10th. Susquehanna Bancshares set a $27.00 price target on shares of Radian Group and gave the stock a “buy” rating in a research note on Tuesday, April 10th. Finally, Royal Bank of Canada cut shares of Radian Group from an “outperform” rating to a “sector perform” rating and set a $26.00 price target for the company. in a research note on Tuesday, April 10th. Two analysts have rated the stock with a sell rating, four have issued a hold rating and seven have given a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average target price of $23.53.

Radian Group opened at $16.23 on Wednesday, according to MarketBeat. The company has a debt-to-equity ratio of 0.34, a current ratio of 1.32 and a quick ratio of 1.32. Radian Group has a twelve month low of $14.06 and a twelve month high of $23.49. The stock has a market capitalization of $3.53 billion, a P/E ratio of 8.92, a P/E/G ratio of 1.40 and a beta of 1.55.

Radian Group (NYSE:RDN) last released its earnings results on Thursday, April 26th. The insurance provider reported $0.59 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.57 by $0.02. Radian Group had a net margin of 12.99% and a return on equity of 14.94%. The business had revenue of $291.60 million during the quarter, compared to analysts’ expectations of $316.47 million. During the same quarter last year, the company earned $0.37 earnings per share. The firm’s revenue was up 1.0% on a year-over-year basis. sell-side analysts anticipate that Radian Group will post 2.35 earnings per share for the current year.

In other news, EVP Edward J. Hoffman sold 14,985 shares of Radian Group stock in a transaction that occurred on Friday, May 18th. The shares were sold at an average price of $16.38, for a total value of $245,454.30. Following the completion of the transaction, the executive vice president now owns 62,789 shares in the company, valued at $1,028,483.82. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Derek Brummer bought 19,200 shares of the business’s stock in a transaction dated Monday, April 30th. The stock was purchased at an average price of $14.91 per share, with a total value of $286,272.00. Following the purchase, the executive vice president now directly owns 74,260 shares of the company’s stock, valued at approximately $1,107,216.60. The disclosure for this purchase can be found here. In the last 90 days, insiders have acquired 49,200 shares of company stock valued at $728,822. Corporate insiders own 0.99% of the company’s stock.

Large investors have recently bought and sold shares of the company. Two Sigma Advisers LP raised its stake in shares of Radian Group by 703.7% in the fourth quarter. Two Sigma Advisers LP now owns 496,234 shares of the insurance provider’s stock valued at $10,227,000 after acquiring an additional 434,487 shares during the last quarter. Brandywine Global Investment Management LLC raised its stake in shares of Radian Group by 3.8% in the fourth quarter. Brandywine Global Investment Management LLC now owns 2,842,363 shares of the insurance provider’s stock valued at $58,582,000 after acquiring an additional 103,941 shares during the last quarter. Quantitative Investment Management LLC raised its stake in shares of Radian Group by 134.4% in the fourth quarter. Quantitative Investment Management LLC now owns 81,800 shares of the insurance provider’s stock valued at $1,685,000 after acquiring an additional 46,900 shares during the last quarter. Macquarie Group Ltd. raised its stake in shares of Radian Group by 211.6% in the fourth quarter. Macquarie Group Ltd. now owns 236,791 shares of the insurance provider’s stock valued at $4,880,000 after acquiring an additional 160,791 shares during the last quarter. Finally, BlackRock Inc. raised its stake in shares of Radian Group by 2.7% in the fourth quarter. BlackRock Inc. now owns 14,438,816 shares of the insurance provider’s stock valued at $297,583,000 after acquiring an additional 377,393 shares during the last quarter. Institutional investors own 93.67% of the company’s stock.

Radian Group Company Profile

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

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