Radian Group (NYSE:RDN) Sets New 12-Month High After Better-Than-Expected Earnings

Radian Group Inc. (NYSE:RDN) shares hit a new 52-week high on Wednesday following a better than expected earnings announcement. The stock traded as high as $31.97 and last traded at $31.90, with a volume of 1930116 shares changing hands. The stock had previously closed at $31.62.

The insurance provider reported $0.99 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.95 by $0.04. The firm had revenue of $318.11 million for the quarter, compared to the consensus estimate of $326.99 million. Radian Group had a net margin of 46.85% and a return on equity of 13.96%. The firm’s quarterly revenue was down .4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.03 EPS.

Radian Group Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 11th. Investors of record on Monday, February 24th were paid a $0.255 dividend. This is a boost from Radian Group’s previous quarterly dividend of $0.25. The ex-dividend date of this dividend was Monday, February 24th. This represents a $1.02 annualized dividend and a dividend yield of 3.12%. Radian Group’s payout ratio is 25.95%.

Wall Street Analyst Weigh In

Several research firms have issued reports on RDN. Keefe, Bruyette & Woods dropped their price objective on Radian Group from $40.00 to $37.00 and set an “outperform” rating on the stock in a report on Tuesday, April 8th. UBS Group lifted their price target on shares of Radian Group from $33.00 to $34.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 19th. Three research analysts have rated the stock with a hold rating and two have issued a buy rating to the company’s stock. According to MarketBeat, Radian Group currently has a consensus rating of “Hold” and a consensus target price of $36.20.

Insider Buying and Selling

In other news, Director Gregory Serio sold 4,100 shares of the firm’s stock in a transaction dated Friday, February 28th. The shares were sold at an average price of $32.65, for a total value of $133,865.00. Following the transaction, the director now directly owns 344 shares in the company, valued at approximately $11,231.60. This trade represents a 92.26 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 2.16% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Radian Group

A number of institutional investors have recently modified their holdings of RDN. Picton Mahoney Asset Management boosted its stake in Radian Group by 54.3% in the fourth quarter. Picton Mahoney Asset Management now owns 972 shares of the insurance provider’s stock valued at $31,000 after acquiring an additional 342 shares during the period. V Square Quantitative Management LLC boosted its position in Radian Group by 61.5% during the 4th quarter. V Square Quantitative Management LLC now owns 1,274 shares of the insurance provider’s stock valued at $40,000 after purchasing an additional 485 shares during the period. Covestor Ltd boosted its position in Radian Group by 35.6% during the 4th quarter. Covestor Ltd now owns 1,351 shares of the insurance provider’s stock valued at $43,000 after purchasing an additional 355 shares during the period. Smartleaf Asset Management LLC grew its stake in Radian Group by 124.8% during the 4th quarter. Smartleaf Asset Management LLC now owns 2,378 shares of the insurance provider’s stock worth $75,000 after buying an additional 1,320 shares during the last quarter. Finally, Jones Financial Companies Lllp increased its position in Radian Group by 735.8% in the fourth quarter. Jones Financial Companies Lllp now owns 2,407 shares of the insurance provider’s stock worth $76,000 after buying an additional 2,119 shares during the period. Institutional investors own 95.33% of the company’s stock.

Radian Group Price Performance

The business has a 50 day simple moving average of $32.02 and a 200-day simple moving average of $32.96. The company has a market capitalization of $4.61 billion, a P/E ratio of 8.31, a PEG ratio of 1.73 and a beta of 0.75. The company has a quick ratio of 2.01, a current ratio of 2.87 and a debt-to-equity ratio of 0.50.

Radian Group Company Profile

Radian Group Inc, together with its subsidiaries, engages in the mortgage and real estate services business in the United States. It operates through two segments, Mortgage Insurance and Homegenius segments. The Mortgage Insurance segment aggregates, manages, and distributes U.S. mortgage credit risk for mortgage lending institutions and mortgage credit investors, through private mortgage insurance on residential first-lien mortgage loans; and other credit risk management solutions, including contract underwriting.