Radian Group (NYSE:RDN) Issues Earnings Results, Misses Expectations By $0.20 EPS

Radian Group (NYSE:RDN) announced its quarterly earnings data on Wednesday. The insurance provider reported $1.14 earnings per share for the quarter, missing analysts’ consensus estimates of $1.34 by ($0.20), Zacks reports. Radian Group had a net margin of 40.50% and a return on equity of 13.57%. During the same period in the previous year, the business posted $1.01 earnings per share. The company’s revenue was up 92.3% on a year-over-year basis.

Radian Group Price Performance

NYSE RDN traded down $0.51 during trading hours on Wednesday, reaching $39.13. The company’s stock had a trading volume of 1,042,781 shares, compared to its average volume of 1,331,749. The stock has a market cap of $5.20 billion, a PE ratio of 9.64, a PEG ratio of 0.99 and a beta of 0.72. Radian Group has a fifty-two week low of $31.50 and a fifty-two week high of $41.05. The company’s 50-day moving average is $36.75 and its two-hundred day moving average is $35.18. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.58 and a current ratio of 0.58.

Radian Group Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, June 17th. Stockholders of record on Tuesday, June 2nd were paid a dividend of $0.255 per share. This represents a $1.02 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend was Tuesday, June 2nd. Radian Group’s payout ratio is 25.12%.

Insider Activity

In other news, EVP Edward J. Hoffman sold 15,000 shares of the stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $38.00, for a total value of $570,000.00. Following the sale, the executive vice president directly owned 93,708 shares in the company, valued at $3,560,904. This represents a 13.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Noel Joseph Spiegel sold 4,834 shares of the firm’s stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $36.19, for a total transaction of $174,942.46. Following the transaction, the director directly owned 20,008 shares of the company’s stock, valued at approximately $724,089.52. This trade represents a 19.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 30,516 shares of company stock worth $1,127,576 in the last three months. Company insiders own 2.03% of the company’s stock.

Institutional Investors Weigh In On Radian Group

A number of large investors have recently bought and sold shares of the stock. Northwestern Mutual Wealth Management Co. lifted its position in shares of Radian Group by 178.9% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 742 shares of the insurance provider’s stock valued at $27,000 after acquiring an additional 476 shares in the last quarter. Geneos Wealth Management Inc. lifted its holdings in Radian Group by 191.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 871 shares of the insurance provider’s stock valued at $29,000 after purchasing an additional 572 shares in the last quarter. Measured Wealth Private Client Group LLC purchased a new position in Radian Group in the 3rd quarter valued at about $34,000. Global Retirement Partners LLC boosted its stake in shares of Radian Group by 1,002.1% during the 4th quarter. Global Retirement Partners LLC now owns 1,058 shares of the insurance provider’s stock worth $38,000 after purchasing an additional 962 shares during the last quarter. Finally, Headlands Technologies LLC acquired a new stake in shares of Radian Group during the 2nd quarter worth about $50,000. Institutional investors and hedge funds own 95.33% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. Barclays increased their target price on Radian Group from $37.00 to $39.00 and gave the stock an “equal weight” rating in a research note on Monday, May 11th. Weiss Ratings restated a “buy (b)” rating on shares of Radian Group in a research note on Tuesday, June 16th. Keefe, Bruyette & Woods upped their price objective on Radian Group from $43.00 to $46.00 and gave the stock an “outperform” rating in a report on Thursday, June 25th. Wall Street Zen upgraded Radian Group from a “hold” rating to a “buy” rating in a research report on Saturday. Finally, Zacks Research downgraded Radian Group from a “strong-buy” rating to a “hold” rating in a report on Monday, April 20th. Five analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $43.17.

Radian Group Company Profile

Radian Group Inc (NYSE:RDN) is a leading provider of private mortgage insurance and related risk management solutions in the United States. Through its primary subsidiary, Radian Guaranty Inc, the company underwrites borrower-paid and lender-paid mortgage insurance that protects lenders and investors from potential losses arising from borrower defaults. Radian’s core business focuses on supporting residential mortgage originations and servicing by offering capital-efficient credit protection and credit risk transfer strategies.

Beyond mortgage insurance, Radian offers an array of real estate transaction services under its Radian Title division.