Radian Group Inc. (RDN) Lowered to “Sell” at Zacks Investment Research
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.”
Several other research analysts also recently weighed in on RDN. FBR & Co reiterated a “market perform” rating and set a $14.00 price target on shares of Radian Group in a research note on Wednesday, June 15th. BTIG Research reiterated a “buy” rating and set a $22.00 price target on shares of Radian Group in a research note on Wednesday, July 6th. Finally, TheStreet upgraded Radian Group from a “hold” rating to a “buy” rating in a research note on Thursday, August 11th. One analyst has rated the stock with a sell rating, three have assigned a hold rating and nine have assigned a buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus price target of $17.00.
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Radian Group (NYSE:RDN) traded up 0.37% on Wednesday, hitting $13.58. The stock had a trading volume of 640,315 shares. The stock has a market capitalization of $2.91 billion, a price-to-earnings ratio of 10.18 and a beta of 2.27. Radian Group has a 1-year low of $9.29 and a 1-year high of $17.00. The company has a 50-day moving average price of $13.42 and a 200-day moving average price of $12.22.
Radian Group (NYSE:RDN) last posted its quarterly earnings results on Thursday, July 28th. The company reported $0.38 earnings per share for the quarter, hitting the consensus estimate of $0.38. The company earned $330.20 million during the quarter, compared to the consensus estimate of $224.68 million. Radian Group had a return on equity of 12.64% and a net margin of 25.42%. During the same quarter in the prior year, the company earned $0.40 EPS. Equities analysts predict that Radian Group will post $1.55 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 7th. Stockholders of record on Monday, August 22nd were given a dividend of $0.0025 per share. The ex-dividend date was Thursday, August 18th. This represents a $0.01 dividend on an annualized basis and a dividend yield of 0.07%. Radian Group’s dividend payout ratio (DPR) is presently 0.75%.
In other news, EVP Derek Brummer acquired 16,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 10th. The shares were bought at an average cost of $12.87 per share, with a total value of $205,920.00. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Insiders own 1.83% of the company’s stock.
Institutional investors have recently made changes to their positions in the stock. Sullivan Bruyette Speros & Blaney Inc. purchased a new position in shares of Radian Group during the second quarter worth $104,000. Landscape Capital Management L.L.C. purchased a new position in shares of Radian Group during the second quarter worth $106,000. Fox Run Management L.L.C. purchased a new position in shares of Radian Group during the second quarter worth $126,000. Genesee Valley Trust Co. boosted its position in shares of Radian Group by 2.3% in the second quarter. Genesee Valley Trust Co. now owns 12,216 shares of the company’s stock worth $127,000 after buying an additional 274 shares in the last quarter. Finally, Nuveen Asset Management LLC boosted its position in shares of Radian Group by 16.1% in the second quarter. Nuveen Asset Management LLC now owns 14,254 shares of the company’s stock worth $149,000 after buying an additional 1,980 shares in the last quarter. 93.38% of the stock is currently owned by institutional investors.
Radian Group Company Profile
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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