Donald Smith & CO. Inc. Invests $163.10 Million in Radian Group Inc. $RDN

Donald Smith & CO. Inc. acquired a new stake in Radian Group Inc. (NYSE:RDN) in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor acquired 4,329,811 shares of the insurance provider’s stock, valued at approximately $163,104,000. Radian Group comprises about 2.9% of Donald Smith & CO. Inc.’s holdings, making the stock its 16th biggest holding. Donald Smith & CO. Inc. owned approximately 3.26% of Radian Group as of its most recent SEC filing.

Other hedge funds and other institutional investors have also made changes to their positions in the company. BlackRock Inc. acquired a new position in Radian Group during the second quarter worth $728,072,000. Charles Schwab Investment Management Inc. lifted its stake in Radian Group by 1.1% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 5,959,463 shares of the insurance provider’s stock valued at $214,481,000 after acquiring an additional 63,437 shares during the last quarter. Dimensional Fund Advisors LP grew its position in shares of Radian Group by 4.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 5,948,335 shares of the insurance provider’s stock valued at $196,773,000 after acquiring an additional 230,912 shares during the period. Balyasny Asset Management L.P. grew its position in shares of Radian Group by 16.8% in the 4th quarter. Balyasny Asset Management L.P. now owns 2,188,624 shares of the insurance provider’s stock valued at $78,769,000 after acquiring an additional 315,575 shares during the period. Finally, Norges Bank acquired a new position in shares of Radian Group during the 4th quarter worth about $77,364,000. 95.33% of the stock is owned by institutional investors.

Radian Group Price Performance

Shares of RDN opened at $36.61 on Friday. The firm has a market capitalization of $4.84 billion, a PE ratio of 9.41, a PEG ratio of 0.89 and a beta of 0.72. The company’s 50-day moving average is $37.45 and its 200-day moving average is $35.51. Radian Group Inc. has a fifty-two week low of $31.50 and a fifty-two week high of $41.05. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.60 and a quick ratio of 0.60.

Radian Group (NYSE:RDN) last posted its earnings results on Thursday, August 6th. The insurance provider reported $1.14 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.34 by ($0.20). The company had revenue of $574.96 million for the quarter, compared to analyst estimates of $556.55 million. Radian Group had a return on equity of 13.65% and a net margin of 32.60%.The business’s quarterly revenue was up 92.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.01 EPS. Equities analysts forecast that Radian Group Inc. will post 4.86 EPS for the current year.

Radian Group Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th will be given a dividend of $0.255 per share. The ex-dividend date is Monday, August 24th. This represents a $1.02 annualized dividend and a yield of 2.8%. Radian Group’s dividend payout ratio (DPR) is 26.22%.

Insider Activity at Radian Group

In other news, Director Margaret Anne Leyden sold 2,070 shares of the company’s stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $34.59, for a total value of $71,601.30. Following the transaction, the director owned 6,864 shares of the company’s stock, valued at approximately $237,425.76. This represents a 23.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Chairman Howard Bernard Culang sold 3,612 shares of the stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $36.00, for a total value of $130,032.00. Following the transaction, the chairman owned 8,050 shares in the company, valued at approximately $289,800. This trade represents a 30.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 15,517 shares of company stock valued at $557,610. 2.03% of the stock is currently owned by insiders.

Analyst Ratings Changes

A number of brokerages have recently issued reports on RDN. Royal Bank Of Canada initiated coverage on shares of Radian Group in a report on Friday, May 22nd. They issued an “outperform” rating and a $47.00 target price on the stock. Barclays reduced their price target on Radian Group from $39.00 to $35.00 and set an “equal weight” rating for the company in a report on Monday, August 10th. Keefe, Bruyette & Woods dropped their price objective on Radian Group from $46.00 to $44.00 and set an “outperform” rating on the stock in a research note on Tuesday, August 11th. Wall Street Zen cut Radian Group from a “buy” rating to a “hold” rating in a research report on Sunday, August 9th. Finally, Bank of America raised Radian Group from an “underperform” rating to a “buy” rating and raised their price objective for the company from $35.00 to $43.00 in a research report on Wednesday, April 29th. Five research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $42.17.

Radian Group 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.