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

Radian Group (NYSE:RDN) issued its earnings results on Wednesday. The insurance provider reported $1.14 earnings per share for the quarter, missing the consensus estimate of $1.34 by ($0.20), Zacks reports. Radian Group had a return on equity of 13.57% and a net margin of 40.50%.During the same period in the previous year, the company posted $1.01 earnings per share. Radian Group’s quarterly revenue was up 92.3% compared to the same quarter last year.

Radian Group Stock Down 1.3%

RDN stock traded down $0.51 during midday trading on Wednesday, hitting $39.13. 1,042,781 shares of the company’s stock were exchanged, compared to its average volume of 1,295,054. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 0.16. Radian Group has a 12-month low of $31.50 and a 12-month high of $41.05. The firm has a 50 day moving average price of $36.82 and a 200-day moving average price of $35.23. The stock has a market capitalization of $5.20 billion, a price-to-earnings ratio of 9.64, a price-to-earnings-growth ratio of 1.00 and a beta of 0.72.

Radian Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 17th. Shareholders of record on Tuesday, June 2nd were issued a dividend of $0.255 per share. The ex-dividend date was Tuesday, June 2nd. This represents a $1.02 annualized dividend and a yield of 2.6%. Radian Group’s payout ratio is currently 25.12%.

Insider Activity at Radian Group

In other news, Director Margaret Anne Leyden sold 2,070 shares of the stock in a transaction that occurred on Friday, May 29th. The stock was 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 in the company, valued at approximately $237,425.76. This represents a 23.17% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Noel Joseph Spiegel sold 4,834 shares of the firm’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 $724,089.52. The trade was a 19.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 30,516 shares of company stock worth $1,127,576. 2.03% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. lifted its position in shares of Radian Group by 178.9% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 742 shares of the insurance provider’s stock worth $27,000 after purchasing an additional 476 shares during the last quarter. Geneos Wealth Management Inc. increased its holdings in Radian Group by 191.3% in the first quarter. Geneos Wealth Management Inc. now owns 871 shares of the insurance provider’s stock valued at $29,000 after buying an additional 572 shares during the last quarter. Measured Wealth Private Client Group LLC bought a new stake in Radian Group in the third quarter valued at about $34,000. Global Retirement Partners LLC increased its holdings in Radian Group by 1,002.1% in the fourth quarter. Global Retirement Partners LLC now owns 1,058 shares of the insurance provider’s stock valued at $38,000 after buying an additional 962 shares during the last quarter. Finally, Headlands Technologies LLC acquired a new stake in Radian Group during the second quarter valued at approximately $50,000. 95.33% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on RDN shares. Royal Bank Of Canada initiated coverage on Radian Group in a research report on Friday, May 22nd. They set an “outperform” rating and a $47.00 price target on the stock. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Radian Group in a research report on Tuesday, June 16th. Wall Street Zen upgraded shares of Radian Group from a “hold” rating to a “buy” rating in a research note on Saturday. Keefe, Bruyette & Woods lifted their price objective on shares of Radian Group from $43.00 to $46.00 and gave the company an “outperform” rating in a research note on Thursday, June 25th. Finally, Bank of America raised shares of Radian Group from an “underperform” rating to a “buy” rating and boosted their target price for the stock from $35.00 to $43.00 in a research report on Wednesday, April 29th. Five analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Radian Group currently has an average rating of “Moderate Buy” and an average target price of $43.17.

Radian Group Company Profile

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.