Radian Group (NYSE:RDN) Trading Down 6.2% – Here’s What Happened

Radian Group Inc. (NYSE:RDN)’s share price was down 6.2% during trading on Tuesday . The company traded as low as $32.03 and last traded at $31.8150. Approximately 675,948 shares were traded during mid-day trading, a decline of 18% from the average daily volume of 822,518 shares. The stock had previously closed at $33.93.

Wall Street Analyst Weigh In

RDN has been the topic of a number of recent analyst reports. UBS Group lowered their price target on shares of Radian Group from $43.00 to $40.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 15th. Zacks Research lowered shares of Radian Group from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 6th. Roth Capital reissued a “buy” rating and set a $45.00 price target on shares of Radian Group in a research note on Friday, January 2nd. Keefe, Bruyette & Woods upped their price target on Radian Group from $40.00 to $41.00 and gave the stock a “market perform” rating in a report on Thursday, December 18th. Finally, Barclays lifted their price objective on Radian Group from $35.00 to $37.00 and gave the stock a “cautious” rating in a report on Monday, October 6th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $40.00.

Radian Group Stock Performance

The company has a current ratio of 1.67, a quick ratio of 1.67 and a debt-to-equity ratio of 0.24. The firm has a market capitalization of $4.30 billion, a PE ratio of 7.91 and a beta of 0.82. The stock’s 50 day moving average price is $35.53 and its two-hundred day moving average price is $34.95.

Radian Group (NYSE:RDN) last posted its earnings results on Wednesday, November 5th. The insurance provider reported $1.15 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.95 by $0.20. The firm had revenue of $303.19 million for the quarter, compared to analyst estimates of $308.77 million. Radian Group had a return on equity of 13.29% and a net margin of 45.90%.Radian Group’s revenue was down 3.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.03 EPS. On average, equities analysts expect that Radian Group Inc. will post 3.79 earnings per share for the current year.

Radian Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, December 9th. Stockholders of record on Monday, November 24th were given a $0.255 dividend. This represents a $1.02 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend was Monday, November 24th. Radian Group’s payout ratio is currently 25.44%.

Insider Activity

In other news, EVP Eric Ray sold 13,957 shares of Radian Group stock in a transaction on Tuesday, December 2nd. The stock was sold at an average price of $35.60, for a total value of $496,869.20. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 2.16% of the stock is owned by company insiders.

Institutional Investors Weigh In On Radian Group

Several hedge funds have recently modified their holdings of RDN. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Radian Group by 178.9% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 742 shares of the insurance provider’s stock worth $27,000 after buying an additional 476 shares during the last quarter. Bessemer Group Inc. lifted its stake in shares of Radian Group by 66.7% in the 3rd quarter. Bessemer Group Inc. now owns 795 shares of the insurance provider’s stock valued at $29,000 after purchasing an additional 318 shares in the last quarter. Financial Consulate Inc. acquired a new position in shares of Radian Group in the 3rd quarter valued at about $29,000. Geneos Wealth Management Inc. grew its holdings in shares of Radian Group by 191.3% during the 1st quarter. Geneos Wealth Management Inc. now owns 871 shares of the insurance provider’s stock worth $29,000 after purchasing an additional 572 shares during the period. Finally, Salomon & Ludwin LLC acquired a new stake in Radian Group during the 3rd quarter worth approximately $33,000. 95.33% of the stock is owned by institutional investors and hedge funds.

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.