Radian Group (NYSE:RDN) Hits New 52-Week High – Should You Buy?

Radian Group Inc. (NYSE:RDN)’s stock price reached a new 52-week high on Tuesday . The stock traded as high as $38.90 and last traded at $38.7910, with a volume of 86810 shares. The stock had previously closed at $38.19.

Wall Street Analyst Weigh In

A number of brokerages have commented on RDN. Wall Street Zen raised Radian Group from a “hold” rating to a “buy” rating in a report on Saturday, June 27th. Royal Bank Of Canada assumed coverage on Radian Group in a report on Friday, May 22nd. They set an “outperform” rating and a $47.00 target price for the company. UBS Group decreased their price target on shares of Radian Group from $41.00 to $39.00 and set a “neutral” rating on the stock in a research note on Thursday, March 12th. Zacks Research lowered shares of Radian Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 20th. Finally, Bank of America upgraded shares of Radian Group from an “underperform” rating to a “buy” rating and lifted their price objective for the stock from $35.00 to $43.00 in a research note on Wednesday, April 29th. Five analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $43.17.

Radian Group Price Performance

The company has a fifty day simple moving average of $35.96 and a two-hundred day simple moving average of $34.77. The stock has a market capitalization of $5.09 billion, a price-to-earnings ratio of 9.43, a PEG ratio of 0.95 and a beta of 0.72. 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 (NYSE:RDN) last released its earnings results on Thursday, May 7th. The insurance provider reported $1.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.17 by $0.10. Radian Group had a return on equity of 13.57% and a net margin of 40.50%.The company had revenue of $466.34 million for the quarter, compared to analyst estimates of $377.83 million. During the same period in the prior year, the firm posted $0.99 EPS. Radian Group’s quarterly revenue was up 46.6% on a year-over-year basis. As a group, equities research analysts expect that Radian Group Inc. will post 5.17 earnings per share for the current fiscal year.

Radian Group Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 17th. Shareholders of record on Tuesday, June 2nd were issued a $0.255 dividend. This represents a $1.02 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend was Tuesday, June 2nd. Radian Group’s dividend payout ratio (DPR) is currently 25.12%.

Insider Buying and Selling

In other news, Chairman Howard Bernard Culang sold 5,000 shares of the business’s stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $36.20, for a total value of $181,000.00. Following the completion of the transaction, the chairman directly owned 11,662 shares in the company, valued at approximately $422,164.40. The trade was a 30.01% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Noel Joseph Spiegel sold 4,834 shares of the company’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 sale, 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 position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 75,516 shares of company stock worth $2,747,576. 2.03% of the stock is owned by company insiders.

Institutional Trading of Radian Group

Institutional investors and hedge funds have recently modified their holdings of the business. Compass Rose Asset Management LP bought a new position in shares of Radian Group in the third quarter worth about $9,960,000. Capital World Investors increased its position in Radian Group by 10.7% during the 3rd quarter. Capital World Investors now owns 1,454,087 shares of the insurance provider’s stock worth $52,667,000 after purchasing an additional 140,003 shares in the last quarter. Lighthouse Investment Partners LLC increased its position in Radian Group by 49.9% during the 3rd quarter. Lighthouse Investment Partners LLC now owns 125,763 shares of the insurance provider’s stock worth $4,555,000 after purchasing an additional 41,861 shares in the last quarter. Jefferies Financial Group Inc. lifted its stake in Radian Group by 331.2% in the 4th quarter. Jefferies Financial Group Inc. now owns 94,867 shares of the insurance provider’s stock valued at $3,414,000 after purchasing an additional 72,867 shares during the last quarter. Finally, Prana Capital Management LP acquired a new stake in Radian Group in the third quarter valued at approximately $1,979,000. 95.33% of the stock is currently owned by institutional investors.

About Radian Group

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.