According to Zacks, “Shares of Radian have outperformed the industry in a year’s time. 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. A Zacks Rank #3 and an Earnings ESP of 0.74% makes us confident of positive earnings surprise as it reports first quarter earnings on May 1. However, 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.”
Separately, ValuEngine lowered Radian Group from a “hold” rating to a “sell” rating in a research report on Monday, January 7th. Five research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average price target of $21.50.
Radian Group (NYSE:RDN) last issued its earnings results on Friday, February 8th. The insurance provider reported $0.70 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.66 by $0.04. Radian Group had a return on equity of 17.92% and a net margin of 47.60%. The firm had revenue of $331.50 million for the quarter, compared to analyst estimates of $342.07 million. During the same period last year, the company earned $0.51 earnings per share. The firm’s revenue for the quarter was up 4.3% on a year-over-year basis. Equities research analysts expect that Radian Group will post 2.75 earnings per share for the current fiscal year.
Institutional investors and hedge funds have recently modified their holdings of the company. Nordea Investment Management AB increased its holdings in shares of Radian Group by 0.5% during the fourth quarter. Nordea Investment Management AB now owns 618,429 shares of the insurance provider’s stock valued at $10,117,000 after purchasing an additional 2,904 shares during the period. MetLife Investment Advisors LLC increased 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 valued at $3,066,000 after purchasing an additional 48,851 shares during the period. Dimensional Fund Advisors LP increased 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 valued at $44,193,000 after purchasing an additional 193,296 shares during the period. Renaissance Technologies LLC increased 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 valued at $3,734,000 after purchasing an additional 66,955 shares during the period. Finally, State of Alaska Department of Revenue increased its holdings in shares of Radian Group by 9.0% during the fourth quarter. State of Alaska Department of Revenue now owns 14,124 shares of the insurance provider’s stock valued at $231,000 after purchasing an additional 1,167 shares during the period. 94.50% of the stock is currently owned by institutional investors.
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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