Radian Group Inc. (RDN) Downgraded by Zacks Investment Research to Sell
Radian Group Inc. (NYSE:RDN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Wednesday.
According to Zacks, “Stricter regulations, rising mortgage rates and a competitive market pose risks for Radian Group. Also, the Zacks Consensus Estimates for 2016 and 2017 have also witnessed downward revisions over the last 60 days. The same declined 3.8% and 3.9% for 2016 and 2017 respectively, over the same time frame. However, the company 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. Moreover, redemption of surplus note enhances its liquidity position by $325 million. Also, the new capital plan includes buying back up to $125 million worth redeeming the remaining $196 million face value of its 9.00% Senior Notes, due 2017. Its initiatives to solidify the financial position and improved debt maturity profile bode well.”
RDN has been the topic of several other research reports. BTIG Research set a $22.00 price objective on shares of Radian Group and gave the company a “buy” rating in a report on Thursday, September 15th. FBR & Co upped their target price on Radian Group from $14.00 to $16.00 and gave the company an “outperform” rating in a research report on Friday, July 29th. Finally, TheStreet upgraded Radian Group from a “hold” rating to a “buy” rating in a research report on Thursday, August 11th. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and nine have given a buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus price target of $17.00.
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Shares of Radian Group (NYSE:RDN) traded up 0.59% during mid-day trading on Wednesday, reaching $13.61. 669,868 shares of the company’s stock were exchanged. The company has a 50 day moving average price of $13.42 and a 200 day moving average price of $12.22. Radian Group has a 52-week low of $9.29 and a 52-week high of $17.00. The firm has a market cap of $2.92 billion, a P/E ratio of 10.20 and a beta of 2.27.
Radian Group (NYSE:RDN) last posted its quarterly earnings data on Thursday, July 28th. The company reported $0.38 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.38. Radian Group had a net margin of 25.42% and a return on equity of 12.64%. The firm had revenue of $330.20 million for the quarter, compared to the consensus estimate of $224.68 million. During the same quarter in the prior year, the company posted $0.40 earnings per share. Analysts forecast that Radian Group will post $1.55 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 7th. Stockholders of record on Monday, August 22nd were paid a dividend of $0.0025 per share. This represents a $0.01 annualized dividend and a dividend yield of 0.07%. The ex-dividend date was Thursday, August 18th. Radian Group’s payout ratio is 0.75%.
In other Radian Group news, EVP Derek Brummer bought 16,000 shares of Radian Group stock in a transaction dated Wednesday, August 10th. The stock was acquired at an average cost of $12.87 per share, with a total value of $205,920.00. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. Insiders own 1.83% of the company’s stock.
Hedge funds and other institutional investors have recently made changes to their positions in the company. Norges Bank acquired a new position in shares of Radian Group during the fourth quarter valued at $19,471,000. Quantitative Systematic Strategies LLC increased its position in shares of Radian Group by 165.5% in the first quarter. Quantitative Systematic Strategies LLC now owns 61,152 shares of the company’s stock valued at $752,000 after buying an additional 38,118 shares during the last quarter. Glenmede Trust Co. NA increased its position in shares of Radian Group by 3.9% in the first quarter. Glenmede Trust Co. NA now owns 2,674,013 shares of the company’s stock valued at $33,156,000 after buying an additional 100,284 shares during the last quarter. Virginia Retirement System acquired a new position in shares of Radian Group during the first quarter valued at $284,000. Finally, Teachers Advisors Inc. increased its position in shares of Radian Group by 193.9% in the first quarter. Teachers Advisors Inc. now owns 1,426,969 shares of the company’s stock valued at $17,694,000 after buying an additional 941,411 shares during the last quarter. 93.38% of the stock is owned by institutional investors and hedge funds.
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.
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