Radian Group Inc. (NYSE:RDN) Stock Rated “Moderate Buy” by Sell-Side Analysts

Shares of Radian Group Inc. (NYSE:RDN) have received a consensus recommendation of “Moderate Buy” from the nine ratings firms that are currently covering the stock, MarketBeat Ratings reports. Three investment analysts have rated the stock with a hold rating and six have issued a buy rating on the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $43.14.

Several analysts have recently weighed in on the stock. Weiss Ratings cut shares of Radian Group from a “buy (b+)” rating to a “buy (b)” rating in a research note on Tuesday, October 13th. Barclays raised their price target on shares of Radian Group from $35.00 to $36.00 and gave the stock an “equal weight” rating in a report on Monday, October 5th. Zacks Research raised shares of Radian Group from a “strong sell” rating to a “hold” rating in a research report on Tuesday, October 13th. Keefe, Bruyette & Woods decreased their price objective on Radian Group from $46.00 to $44.00 and set an “outperform” rating on the stock in a report on Tuesday, August 11th. Finally, Wall Street Zen cut Radian Group from a “buy” rating to a “hold” rating in a report on Saturday, October 10th.

Radian Group Trading Up 0.3%

Shares of RDN opened at $34.15 on Tuesday. The company has a current ratio of 0.60, a quick ratio of 0.60 and a debt-to-equity ratio of 0.14. Radian Group has a 12-month low of $30.53 and a 12-month high of $41.05. The firm has a 50-day moving average price of $35.10 and a 200 day moving average price of $35.91. The firm has a market capitalization of $4.52 billion, a P/E ratio of 8.78, a P/E/G ratio of 0.82 and a beta of 0.71.

Radian Group (NYSE:RDN) last released its quarterly earnings data on Thursday, August 6th. The insurance provider reported $1.14 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.34 by ($0.20). Radian Group had a return on equity of 13.65% and a net margin of 32.60%. The firm had revenue of $574.96 million for the quarter, compared to analyst estimates of $556.55 million. During the same quarter in the previous year, the business posted $1.01 earnings per share. Radian Group’s revenue for the quarter was up 92.3% on a year-over-year basis. Sell-side analysts forecast that Radian Group will post 4.88 EPS for the current year.

Radian Group Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th were given a $0.2550 dividend. The ex-dividend date was Monday, August 24th. This represents a $1.02 dividend on an annualized basis and a yield of 3.0%. Radian Group’s payout ratio is currently 26.22%.

Insider Buying and Selling

In other news, EVP Meghan Bartholomew sold 7,812 shares of the company’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $35.94, for a total value of $280,763.28. Following the transaction, the executive vice president owned 39,203 shares of the company’s stock, valued at $1,408,955.82. This represents a 16.62% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.03% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Radian Group

A number of hedge funds have recently modified their holdings of RDN. BlackRock Inc. purchased a new position in Radian Group during the 2nd quarter valued at about $728,072,000. Dimensional Fund Advisors LP grew its position in Radian Group by 4.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 5,948,335 shares of the insurance provider’s stock valued at $196,773,000 after acquiring an additional 230,912 shares in the last quarter. Donald Smith & CO. Inc. purchased a new stake in Radian Group during the second quarter worth about $163,104,000. Caisse de depot et placement du Quebec purchased a new stake in Radian Group during the second quarter worth about $89,334,000. Finally, Bruni J V & Co. Co. purchased a new stake in Radian Group during the second quarter worth about $59,355,376. 95.33% of the stock is currently owned by hedge funds and other institutional investors.

Radian Group Company Profile

Radian Group Inc (NYSE:RDN) is a financial services company that provides mortgage insurance and related services to the residential real estate industry. Through its mortgage insurance subsidiaries, including Radian Guaranty Inc, the company helps lenders manage credit risk on residential mortgages, particularly loans made to borrowers with smaller down payments. Its insurance can also help borrowers obtain home financing without contributing a traditional 20% down payment.

Radian’s mortgage insurance business serves mortgage lenders, banks, credit unions and other housing finance participants primarily in the United States.