Radian Group (NYSE:RDN) Downgraded by Compass Point to Hold

Compass Point cut shares of Radian Group (NYSE:RDN) from a strong-buy rating to a hold rating in a research report report published on Friday,Zacks.com reports.

A number of other research firms have also recently weighed in on RDN. Keefe, Bruyette & Woods reaffirmed an “outperform” rating and issued a $38.00 price objective (up previously from $37.00) on shares of Radian Group in a report on Friday, May 2nd. UBS Group boosted their target price on shares of Radian Group from $34.00 to $36.00 and gave the stock a “neutral” rating in a research note on Monday, May 5th. Four equities research analysts have rated the stock with a hold rating and two have given a buy rating to the company’s stock. Based on data from MarketBeat.com, Radian Group presently has an average rating of “Hold” and an average target price of $36.83.

Radian Group Trading Down 1.1%

NYSE RDN opened at $33.28 on Friday. The company has a market capitalization of $4.47 billion, a PE ratio of 8.47, a P/E/G ratio of 1.73 and a beta of 0.71. The company has a fifty day moving average of $32.65 and a 200 day moving average of $32.92. Radian Group has a 1 year low of $29.32 and a 1 year high of $37.86. The company has a debt-to-equity ratio of 0.50, a current ratio of 2.87 and a quick ratio of 2.01.

Radian Group (NYSE:RDN) last released its quarterly earnings data on Wednesday, April 30th. The insurance provider reported $0.99 earnings per share for the quarter, beating analysts’ consensus estimates of $0.95 by $0.04. Radian Group had a net margin of 46.85% and a return on equity of 13.96%. The company had revenue of $318.11 million during the quarter, compared to analysts’ expectations of $326.99 million. During the same quarter in the previous year, the company earned $1.03 earnings per share. The firm’s revenue for the quarter was down .4% on a year-over-year basis. Research analysts forecast that Radian Group will post 3.79 earnings per share for the current year.

Radian Group announced that its board has authorized a stock repurchase plan on Wednesday, May 21st that permits the company to repurchase $750.00 million in shares. This repurchase authorization permits the insurance provider to reacquire up to 16.9% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Radian Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 17th. Investors of record on Monday, June 2nd will be paid a dividend of $0.255 per share. The ex-dividend date of this dividend is Monday, June 2nd. This represents a $1.02 annualized dividend and a yield of 3.06%. Radian Group’s dividend payout ratio is presently 25.95%.

Insider Activity

In other news, Director Gregory Serio sold 4,100 shares of the stock in a transaction that occurred on Friday, February 28th. The shares were sold at an average price of $32.65, for a total value of $133,865.00. Following the completion of the sale, the director now owns 344 shares of the company’s stock, valued at $11,231.60. This represents a 92.26% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Corporate insiders own 2.01% of the company’s stock.

Institutional Trading of Radian Group

Several hedge funds have recently made changes to their positions in the company. Picton Mahoney Asset Management lifted its holdings in Radian Group by 54.3% during the 4th quarter. Picton Mahoney Asset Management now owns 972 shares of the insurance provider’s stock worth $31,000 after buying an additional 342 shares in the last quarter. Covestor Ltd grew its position in Radian Group by 35.6% during the 4th quarter. Covestor Ltd now owns 1,351 shares of the insurance provider’s stock worth $43,000 after purchasing an additional 355 shares during the last quarter. Jones Financial Companies Lllp grew its position in Radian Group by 14.8% during the 1st quarter. Jones Financial Companies Lllp now owns 2,764 shares of the insurance provider’s stock worth $91,000 after purchasing an additional 357 shares during the last quarter. CX Institutional grew its position in Radian Group by 5.8% during the 4th quarter. CX Institutional now owns 8,233 shares of the insurance provider’s stock worth $261,000 after purchasing an additional 451 shares during the last quarter. Finally, AlphaQuest LLC grew its position in Radian Group by 3.1% during the 1st quarter. AlphaQuest LLC now owns 15,904 shares of the insurance provider’s stock worth $526,000 after purchasing an additional 476 shares during the last quarter. Hedge funds and other institutional investors own 95.33% of the company’s stock.

Radian Group Company Profile

Radian Group Inc, together with its subsidiaries, engages in the mortgage and real estate services business in the United States. It operates through two segments, Mortgage Insurance and Homegenius segments. The Mortgage Insurance segment aggregates, manages, and distributes U.S. mortgage credit risk for mortgage lending institutions and mortgage credit investors, through private mortgage insurance on residential first-lien mortgage loans; and other credit risk management solutions, including contract underwriting.