According to Zacks, “Stricter regulations, rising mortgage rates and a competitive market pose risks for Radian Group. Also, the Zacks Consensus Estimates for 2016 and 2017 have also witnessed downward revisions over the last 60 days. The same declined 3.8% and 3.9% for 2016 and 2017 respectively, over the same time frame. However, the company is poised for long-term growth on expansive mortgage and real estate service offerings, declining delinquency, lower levels of paid claims and improving risk-based capital ratio. Moreover, redemption of surplus note enhances its liquidity position by $325 million. Also, the new capital plan includes buying back up to $125 million worth redeeming the remaining $196 million face value of its 9.00% Senior Notes, due 2017. Its initiatives to solidify the financial position and improved debt maturity profile bode well.”
Several other brokerages have also recently issued reports on RDN. FBR & Co raised shares of Radian Group from a market perform rating to an outperform rating and set a $14.00 target price for the company in a report on Thursday, June 30th. BTIG Research set a $22.00 target price on shares of Radian Group and gave the stock a buy rating in a report on Thursday, September 15th. Finally, TheStreet raised shares of Radian Group from a hold rating to a buy rating in a report on Thursday, August 11th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and nine have given a buy rating to the company. The company presently has an average rating of Buy and an average target price of $17.00.
Radian Group (NYSE:RDN) opened at 13.52 on Wednesday. Radian Group has a 12-month low of $9.29 and a 12-month high of $17.00. The company has a market capitalization of $2.90 billion, a P/E ratio of 10.13 and a beta of 2.27. The company has a 50-day moving average of $13.53 and a 200 day moving average of $12.27.
Radian Group (NYSE:RDN) last issued its quarterly earnings results on Thursday, July 28th. The company reported $0.38 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.38. Radian Group had a net margin of 25.42% and a return on equity of 12.64%. The company earned $330.20 million during the quarter, compared to analysts’ expectations of $224.68 million. During the same period last year, the company posted $0.40 EPS. Equities research analysts forecast that Radian Group will post $1.55 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 7th. Stockholders of record on Monday, August 22nd were issued a dividend of $0.0025 per share. The ex-dividend date of this dividend was Thursday, August 18th. This represents a $0.01 annualized dividend and a dividend yield of 0.07%. Radian Group’s payout ratio is 0.75%.
In related news, EVP Derek Brummer acquired 16,000 shares of the firm’s stock in a transaction dated Wednesday, August 10th. The stock was purchased at an average cost of $12.87 per share, with a total value of $205,920.00. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 1.83% of the company’s stock.
A number of hedge funds have recently made changes to their positions in the stock. Sullivan Bruyette Speros & Blaney Inc. acquired a new stake in shares of Radian Group during the second quarter valued at about $104,000. Landscape Capital Management L.L.C. acquired a new stake in shares of Radian Group during the second quarter valued at about $106,000. Fox Run Management L.L.C. acquired a new stake in shares of Radian Group during the second quarter valued at about $126,000. Genesee Valley Trust Co. raised its stake in shares of Radian Group by 2.3% in the second quarter. Genesee Valley Trust Co. now owns 12,216 shares of the company’s stock valued at $127,000 after buying an additional 274 shares during the period. Finally, Nuveen Asset Management LLC raised its stake in shares of Radian Group by 16.1% in the second quarter. Nuveen Asset Management LLC now owns 14,254 shares of the company’s stock valued at $149,000 after buying an additional 1,980 shares during the period. Institutional investors own 93.38% of the company’s stock.
About Radian Group
Radian Group Inc is a holding company that provides mortgage insurance, and products and services to the real estate and mortgage finance industries. The Company operates in two segments: Mortgage Insurance and Services. The Mortgage Insurance segment provides credit-related insurance coverage, principally through private mortgage insurance to mortgage lending institutions.
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