Radian Group (NYSE:RDN) Stock Crosses Below 200 Day Moving Average – Here’s Why

Radian Group Inc. (NYSE:RDN)’s share price crossed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $35.17 and traded as low as $34.92. Radian Group shares last traded at $34.9640, with a volume of 1,606,183 shares changing hands.

Analyst Ratings Changes

A number of research firms have recently weighed in on RDN. BTIG Research started coverage on shares of Radian Group in a research report on Tuesday, September 22nd. They set a “buy” rating and a $48.00 price target for the company. Keefe, Bruyette & Woods cut their price target on shares of Radian Group from $46.00 to $44.00 and set an “outperform” rating on the stock in a report on Tuesday, August 11th. Barclays upped their price target on shares of Radian Group from $35.00 to $36.00 and gave the company an “equal weight” rating in a report on Monday, October 5th. Weiss Ratings downgraded shares of Radian Group from a “buy (b+)” rating to a “buy (b)” rating in a research note on Tuesday, October 13th. Finally, Wall Street Zen lowered shares of Radian Group from a “buy” rating to a “hold” rating in a report on Saturday, October 10th. Six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $43.14.

Radian Group Price Performance

The company’s fifty day moving average price is $34.87 and its 200 day moving average price is $35.17. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.60 and a current ratio of 0.60. The firm has a market capitalization of $4.63 billion, a price-to-earnings ratio of 8.99, a price-to-earnings-growth ratio of 0.89 and a beta of 0.71.

Radian Group (NYSE:RDN) last released its quarterly earnings data on Thursday, August 6th. The insurance provider reported $1.14 earnings per share for the quarter, missing the consensus estimate of $1.34 by ($0.20). The business 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%. Radian Group’s revenue was up 92.3% compared to the same quarter last year. During the same quarter last year, the company earned $1.01 EPS. Equities research analysts expect that Radian Group Inc. will post 4.85 earnings per share for the current year.

Radian Group Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th were paid a $0.2550 dividend. This represents a $1.02 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date was Monday, August 24th. Radian Group’s payout ratio is presently 26.22%.

Insider Activity at Radian Group

In other news, EVP Meghan Bartholomew sold 7,812 shares of the company’s stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $35.94, for a total transaction of $280,763.28. Following the completion of the transaction, the executive vice president directly owned 39,203 shares of the company’s stock, valued at approximately $1,408,955.82. This represents a 16.62% 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 the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 2.03% of the company’s stock.

Institutional Trading of Radian Group

Several hedge funds have recently made changes to their positions in RDN. BlackRock Inc. acquired a new position in Radian Group during the 2nd quarter valued at approximately $728,072,000. Dimensional Fund Advisors LP grew its stake in Radian Group by 4.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 5,948,335 shares of the insurance provider’s stock worth $196,773,000 after buying an additional 230,912 shares during the last quarter. Donald Smith & CO. Inc. acquired a new stake in Radian Group in the second quarter worth $163,104,000. Caisse de depot et placement du Quebec acquired a new stake in Radian Group in the second quarter worth $89,334,000. Finally, Bruni J V & Co. Co. acquired a new stake in Radian Group in the second quarter worth $59,355,376. Institutional investors own 95.33% of the company’s stock.

Radian Group Company Profile

Radian Group Inc (NYSE:RDN) is a financial services company that provides mortgage insurance and related services to the residential real estate industry. Through its mortgage insurance subsidiaries, including Radian Guaranty Inc, the company helps lenders manage credit risk on residential mortgages, particularly loans made to borrowers with smaller down payments. Its insurance can also help borrowers obtain home financing without contributing a traditional 20% down payment.

Radian’s mortgage insurance business serves mortgage lenders, banks, credit unions and other housing finance participants primarily in the United States.