Radian Group (NYSE:RDN) Releases Earnings Results, Beats Expectations By $0.20 EPS

Radian Group (NYSE:RDN) released its earnings results on Tuesday. The insurance provider reported $1.15 earnings per share for the quarter, topping analysts’ consensus estimates of $0.95 by $0.20, Zacks reports. Radian Group had a net margin of 45.62% and a return on equity of 13.25%. The firm had revenue of $303.19 million for the quarter, compared to the consensus estimate of $308.77 million. During the same period in the prior year, the firm earned $1.03 EPS. The company’s revenue was down 3.3% compared to the same quarter last year.

Radian Group Stock Performance

Shares of NYSE:RDN traded up $0.39 during trading on Thursday, hitting $34.40. The company’s stock had a trading volume of 180,029 shares, compared to its average volume of 1,326,250. The company has a 50-day moving average of $34.75 and a 200-day moving average of $34.31. Radian Group has a 12 month low of $29.32 and a 12 month high of $38.84. The company has a debt-to-equity ratio of 0.54, a current ratio of 1.68 and a quick ratio of 1.68. The firm has a market cap of $4.66 billion, a price-to-earnings ratio of 8.67 and a beta of 0.73.

Radian Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 9th. Stockholders of record on Monday, August 25th were paid a $0.255 dividend. This represents a $1.02 annualized dividend and a dividend yield of 3.0%. The ex-dividend date was Monday, August 25th. Radian Group’s dividend payout ratio is 25.69%.

Insider Buying and Selling at Radian Group

In other news, EVP Edward J. Hoffman sold 10,000 shares of the stock in a transaction that occurred on Thursday, September 18th. The shares were sold at an average price of $37.00, for a total value of $370,000.00. Following the transaction, the executive vice president owned 153,708 shares in the company, valued at $5,687,196. This represents a 6.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 2.01% of the stock is owned by company insiders.

Institutional Investors Weigh In On Radian Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RDN. Balyasny Asset Management L.P. raised its position in shares of Radian Group by 113.3% during the second quarter. Balyasny Asset Management L.P. now owns 744,197 shares of the insurance provider’s stock valued at $26,806,000 after buying an additional 395,370 shares during the last quarter. California Public Employees Retirement System raised its position in shares of Radian Group by 3.2% during the second quarter. California Public Employees Retirement System now owns 275,716 shares of the insurance provider’s stock valued at $9,931,000 after buying an additional 8,579 shares during the last quarter. Cubist Systematic Strategies LLC raised its position in shares of Radian Group by 173.1% during the second quarter. Cubist Systematic Strategies LLC now owns 271,802 shares of the insurance provider’s stock valued at $9,790,000 after buying an additional 172,284 shares during the last quarter. Canada Pension Plan Investment Board bought a new stake in shares of Radian Group during the second quarter valued at approximately $9,048,000. Finally, Qube Research & Technologies Ltd bought a new stake in shares of Radian Group during the second quarter valued at approximately $8,726,000. Institutional investors own 95.33% of the company’s stock.

Wall Street Analyst Weigh In

Several brokerages recently commented on RDN. UBS Group cut their price objective on shares of Radian Group from $43.00 to $40.00 and set a “neutral” rating on the stock in a research report on Wednesday, October 15th. Weiss Ratings downgraded shares of Radian Group from a “buy (a-)” rating to a “buy (b)” rating in a research report on Saturday, October 25th. Barclays increased their price objective on shares of Radian Group from $35.00 to $37.00 and gave the company a “cautious” rating in a research report on Monday, October 6th. Finally, Zacks Research raised shares of Radian Group from a “hold” rating to a “strong-buy” rating in a research report on Monday, September 22nd. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $38.00.

About Radian Group

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.