Radian Group Inc. (NYSE:RDN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Friday. The firm currently has a $16.00 target price on the stock. Zacks Investment Research’s price objective suggests a potential upside of 9.97% from the company’s previous close.
According to Zacks, “Radian Group is poised for long-term growth on expansive mortgage and real estate service offerings, declining delinquency, lower levels of paid claims and improving risk-based capital ratio. The company is on track to return to investment grade ratings with recent upgrade for Radian group and Radian Guaranty from S&P. Its initiatives to solidify the financial position and improved debt maturity profile bode well. However, stricter regulations, rising mortgage rates and a competitive market pose risks for the company. With respect to quarterly results, Radian Group’s third-quarter 2016 earnings outperformed the Zacks Consensus Estimate and also improved year over year. Notably, the company witnessed the highest volume of new flow mortgage insurance business written in the third quarter of 2016.”
A number of other equities research analysts also recently weighed in on RDN. BTIG Research set a $22.00 target price on Radian Group and gave the stock a “buy” rating in a research report on Thursday, September 15th. FBR & Co restated a “buy” rating on shares of Radian Group in a research report on Friday, October 28th. Bank of America Corp. initiated coverage on Radian Group in a research report on Monday, October 17th. They set a “buy” rating and a $18.00 target price for the company. Compass Point cut Radian Group from a “buy” rating to a “neutral” rating and set a $17.00 price objective for the company. in a research note on Friday, October 28th. Finally, TheStreet raised Radian Group from a “hold” rating to a “buy” rating in a research note on Thursday, August 11th. Three investment analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. The company has an average rating of “Buy” and a consensus target price of $17.04.
Radian Group (NYSE:RDN) traded down 0.14% during midday trading on Friday, hitting $14.53. The stock had a trading volume of 828,562 shares. The firm has a market cap of $3.12 billion, a P/E ratio of 10.29 and a beta of 2.30. The stock has a 50-day moving average of $13.98 and a 200-day moving average of $12.77. Radian Group has a 52 week low of $9.29 and a 52 week high of $14.88.
Radian Group (NYSE:RDN) last released its earnings results on Thursday, October 27th. The company reported $0.41 earnings per share for the quarter, topping analysts’ consensus estimates of $0.40 by $0.01. The company earned $320.88 million during the quarter, compared to the consensus estimate of $229.12 million. Radian Group had a return on equity of 12.73% and a net margin of 25.97%. The firm’s quarterly revenue was up 7.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.31 earnings per share. Analysts forecast that Radian Group will post $1.55 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Monday, December 5th. Shareholders of record on Monday, November 21st will be paid a $0.0025 dividend. The ex-dividend date is Thursday, November 17th. This represents a $0.01 dividend on an annualized basis and a yield of 0.07%. Radian Group’s payout ratio is 0.70%.
A number of hedge funds and other institutional investors have recently bought and sold shares of RDN. FMR LLC boosted its position in Radian Group by 1.9% in the second quarter. FMR LLC now owns 18,946,596 shares of the company’s stock valued at $197,423,000 after buying an additional 348,825 shares in the last quarter. Vanguard Group Inc. boosted its position in Radian Group by 8.3% in the second quarter. Vanguard Group Inc. now owns 15,274,403 shares of the company’s stock valued at $159,160,000 after buying an additional 1,171,634 shares in the last quarter. LSV Asset Management boosted its position in Radian Group by 1.0% in the third quarter. LSV Asset Management now owns 10,947,133 shares of the company’s stock valued at $148,333,000 after buying an additional 104,400 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its position in Radian Group by 14.6% in the third quarter. Price T Rowe Associates Inc. MD now owns 9,829,872 shares of the company’s stock valued at $133,195,000 after buying an additional 1,249,902 shares in the last quarter. Finally, BlackRock Fund Advisors boosted its position in Radian Group by 8.4% in the third quarter. BlackRock Fund Advisors now owns 5,820,216 shares of the company’s stock valued at $78,864,000 after buying an additional 449,150 shares in the last quarter. 93.54% of the stock is owned by hedge funds and other institutional investors.
About Radian Group
Radian Group Inc is a holding company that provides mortgage insurance, and products and services to the real estate and mortgage finance industries. The Company operates in two segments: Mortgage Insurance and Services. The Mortgage Insurance segment provides credit-related insurance coverage, principally through private mortgage insurance to mortgage lending institutions.