Radian Group (NYSE:RDN) Upgraded to “Strong-Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of Radian Group (NYSE:RDN) from a hold rating to a strong-buy rating in a report published on Tuesday, Zacks.com reports. They currently have $27.00 target price on the insurance provider’s stock.

According to Zacks, “Radian Group remains focused on improving mortgage insurance portfolio to drive long-term earnings growth. Business restructuring intensifies its focus on core business and services with higher-growth potential, ensuring predictable and recurring fee-based revenue stream. It is thus poised to benefit from strong mortgage insurance market Based on strong credit characteristics of new loans insured, declining claim payments aid. Solid persistency and rise in new mortgage insurance business are driving insurance in force to increase. Its robust capital position enables it to deploy capital. Shares have outperformed the industry in the past year. However, high cost tend to weigh on margin expansion. Increased provision for losses in mortgage insurance business concern us. Given the pandemic, the company expects slowdown in purchase loan volume.”

Several other equities research analysts also recently weighed in on RDN. Credit Suisse Group boosted their target price on shares of Radian Group from $22.50 to $25.00 and gave the stock a neutral rating in a research report on Monday, October 11th. B. Riley boosted their target price on shares of Radian Group from $30.00 to $31.00 and gave the stock a buy rating in a research report on Wednesday, October 13th. Bank of America downgraded shares of Radian Group from a buy rating to an underperform rating and dropped their target price for the stock from $25.00 to $22.50 in a research report on Wednesday, November 17th. Barclays boosted their price objective on shares of Radian Group from $30.00 to $34.00 in a research report on Monday, January 10th. Finally, BTIG Research reaffirmed a buy rating and set a $29.00 price objective on shares of Radian Group in a research report on Friday, October 8th. One research analyst has rated the stock with a sell rating, one has issued a hold rating, two have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of Buy and an average target price of $28.08.

Radian Group stock opened at $23.59 on Tuesday. The firm’s fifty day moving average price is $21.39 and its 200 day moving average price is $22.35. The company has a market capitalization of $4.23 billion, a price-to-earnings ratio of 8.22, a price-to-earnings-growth ratio of 1.45 and a beta of 1.43. Radian Group has a 12-month low of $19.10 and a 12-month high of $25.31. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.06 and a quick ratio of 1.06.

Radian Group (NYSE:RDN) last released its earnings results on Tuesday, November 2nd. The insurance provider reported $0.67 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.71 by ($0.04). The company had revenue of $285.89 million during the quarter, compared to the consensus estimate of $328.60 million. Radian Group had a return on equity of 12.62% and a net margin of 40.78%. During the same period in the previous year, the firm posted $0.59 EPS. Analysts forecast that Radian Group will post 2.83 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which was paid on Friday, December 3rd. Investors of record on Monday, November 22nd were given a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 2.37%. The ex-dividend date of this dividend was Friday, November 19th. Radian Group’s dividend payout ratio is presently 19.51%.

In other Radian Group news, EVP Brien Mcmahon sold 50,920 shares of the business’s stock in a transaction dated Wednesday, November 24th. The shares were sold at an average price of $21.64, for a total transaction of $1,101,908.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Richard G. Thornberry bought 20,000 shares of Radian Group stock in a transaction on Tuesday, November 23rd. The shares were purchased at an average cost of $21.65 per share, with a total value of $433,000.00. The disclosure for this purchase can be found here. 1.36% of the stock is owned by corporate insiders.

A number of institutional investors have recently bought and sold shares of the business. Van ECK Associates Corp lifted its stake in shares of Radian Group by 119.5% in the 2nd quarter. Van ECK Associates Corp now owns 2,224 shares of the insurance provider’s stock worth $49,000 after acquiring an additional 1,211 shares during the period. Dark Forest Capital Management LP acquired a new stake in shares of Radian Group in the 2nd quarter worth approximately $60,000. Pinz Capital Management LP acquired a new stake in shares of Radian Group in the 2nd quarter worth approximately $91,000. O Shaughnessy Asset Management LLC lifted its stake in shares of Radian Group by 13.4% in the 3rd quarter. O Shaughnessy Asset Management LLC now owns 6,805 shares of the insurance provider’s stock worth $155,000 after acquiring an additional 806 shares during the period. Finally, Convergence Investment Partners LLC lifted its stake in shares of Radian Group by 5.8% in the 3rd quarter. Convergence Investment Partners LLC now owns 8,524 shares of the insurance provider’s stock worth $194,000 after acquiring an additional 465 shares during the period. 95.98% of the stock is owned by hedge funds and other institutional investors.

About Radian Group

Radian Group, Inc is a holding company, which engages in the provision of mortgage insurance, risk management products, and real estate services to financial institutions. It operates through the Mortgage and Real Estate segments. The Mortgage segment offers credit-related insurance coverage, as well as other credit risk management solutions to mortgage lending institutions and mortgage credit investors.

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