Radian Group (NYSE:RDN) Reaches New 1-Year High – Here’s What Happened

Radian Group Inc. (NYSE:RDN)’s share price hit a new 52-week high on Tuesday . The company traded as high as $39.82 and last traded at $38.1090, with a volume of 2097629 shares changing hands. The stock had previously closed at $38.01.

Analyst Ratings Changes

Several equities research analysts have issued reports on RDN shares. Royal Bank Of Canada assumed coverage on shares of Radian Group in a report on Friday, May 22nd. They issued an “outperform” rating and a $47.00 price target on the stock. Wall Street Zen lowered Radian Group from a “buy” rating to a “hold” rating in a research note on Sunday. Barclays increased their price target on shares of Radian Group from $37.00 to $39.00 and gave the company an “equal weight” rating in a research note on Monday, May 11th. Zacks Research cut Radian Group from a “strong-buy” rating to a “hold” rating in a report on Monday, April 20th. Finally, Bank of America raised shares of Radian Group from an “underperform” rating to a “buy” rating and lifted their target price for the stock from $35.00 to $43.00 in a report on Wednesday, April 29th. Five equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $43.17.

Radian Group Price Performance

The company has a market cap of $5.07 billion, a price-to-earnings ratio of 9.39, a PEG ratio of 0.95 and a beta of 0.72. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 0.16. The company’s fifty day moving average price is $36.13 and its two-hundred day moving average price is $34.81.

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 analysts’ consensus estimates of $1.17 by $0.10. The firm had revenue of $466.34 million during the quarter, compared to analysts’ expectations of $377.83 million. Radian Group had a return on equity of 13.57% and a net margin of 40.50%.The company’s revenue was up 46.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.99 EPS. On average, equities research analysts forecast that Radian Group Inc. will post 5.17 EPS for the current fiscal year.

Radian Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 17th. Stockholders of record on Tuesday, June 2nd were given a $0.255 dividend. This represents a $1.02 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend was Tuesday, June 2nd. Radian Group’s payout ratio is currently 25.12%.

Insiders Place Their Bets

In related news, Chairman Howard Bernard Culang sold 3,612 shares of the stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $36.00, for a total transaction of $130,032.00. Following the completion of the transaction, the chairman owned 8,050 shares in the company, valued at approximately $289,800. This represents a 30.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Margaret Anne Leyden sold 2,070 shares of the firm’s stock in a transaction on Friday, May 29th. The shares were sold at an average price of $34.59, for a total transaction of $71,601.30. Following the completion of the transaction, the director directly owned 6,864 shares of the company’s stock, valued at approximately $237,425.76. This trade represents a 23.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 73,525 shares of company stock valued at $2,677,891 over the last 90 days. 2.03% of the stock is currently owned by company insiders.

Institutional Trading of Radian Group

Hedge funds and other institutional investors have recently modified their holdings of the stock. Mercer Global Advisors Inc. ADV raised its holdings in Radian Group by 0.9% during the third quarter. Mercer Global Advisors Inc. ADV now owns 33,365 shares of the insurance provider’s stock worth $1,208,000 after acquiring an additional 288 shares in the last quarter. Hantz Financial Services Inc. boosted its position in Radian Group by 26.9% during the fourth quarter. Hantz Financial Services Inc. now owns 1,553 shares of the insurance provider’s stock valued at $56,000 after purchasing an additional 329 shares during the last quarter. Smartleaf Asset Management LLC grew its stake in Radian Group by 14.6% in the second quarter. Smartleaf Asset Management LLC now owns 2,696 shares of the insurance provider’s stock valued at $97,000 after purchasing an additional 344 shares in the last quarter. HighTower Advisors LLC increased its position in shares of Radian Group by 6.1% during the 4th quarter. HighTower Advisors LLC now owns 6,060 shares of the insurance provider’s stock worth $218,000 after purchasing an additional 349 shares during the last quarter. Finally, Jones Financial Companies Lllp increased its position in shares of Radian Group by 14.8% during the 1st quarter. Jones Financial Companies Lllp now owns 2,764 shares of the insurance provider’s stock worth $91,000 after purchasing an additional 357 shares during the last quarter. Institutional investors and hedge funds own 95.33% of the company’s stock.

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.