Radian Group Inc. (NYSE:RDN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Monday.

According to Zacks, “Shares of Radian Group have outperformed the insurance industry in a year. Radian Group 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. The company has received rating upgrades owing to a string of capital takes undertaken by the company and is thus on track to return to an investment grade rating. Its initiatives to solidify the financial position and improved debt maturity profile bode well. However, stricter regulations, rising mortgage rates and a competitive market pose risks for Radian Group. The company expects expenses to be between $62 million and $66 million each quarter. Radian is set to announce third quarter result on Oct 26. Our proven model cannot conclusively show that the company is likely to beat on earnings because Zacks Rank #3 when combined with an Earnings ESP of 0.00% makes prediction difficult.”

A number of other equities research analysts have also recently issued reports on the stock. ValuEngine cut shares of Radian Group from a “strong-buy” rating to a “buy” rating in a report on Thursday, September 7th. Susquehanna Bancshares Inc set a $22.00 target price on shares of Radian Group and gave the company a “buy” rating in a report on Monday, October 16th. BTIG Research reissued a “buy” rating and set a $22.00 target price on shares of Radian Group in a report on Sunday, October 15th. Compass Point reissued a “neutral” rating and set a $21.25 target price on shares of Radian Group in a report on Saturday, October 14th. Finally, Barclays PLC reissued an “overweight” rating and set a $24.00 target price (down previously from $25.00) on shares of Radian Group in a report on Wednesday, August 2nd. One investment analyst has rated the stock with a sell rating, two have issued a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the company. The stock currently has an average rating of “Buy” and a consensus target price of $21.91.

Radian Group (NYSE RDN) traded down 2.0695% during trading on Monday, hitting $19.8701. The stock had a trading volume of 852,495 shares. Radian Group has a 1-year low of $12.96 and a 1-year high of $20.82. The firm has a 50 day moving average price of $18.22 and a 200-day moving average price of $17.44. The firm has a market capitalization of $4.28 billion, a PE ratio of 22.8130 and a beta of 1.51.

Radian Group (NYSE:RDN) last issued its earnings results on Tuesday, August 1st. The insurance provider reported $0.48 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.40 by $0.08. Radian Group had a net margin of 16.26% and a return on equity of 12.81%. The business had revenue of $302.91 million for the quarter, compared to analysts’ expectations of $299.07 million. During the same quarter in the previous year, the firm posted $0.38 EPS. The business’s revenue for the quarter was up 4.9% compared to the same quarter last year. On average, equities research analysts expect that Radian Group will post $1.72 EPS for the current year.

Radian Group declared that its board has approved a share repurchase plan on Wednesday, August 9th that permits the company to buyback $50.00 million in shares. This buyback authorization permits the insurance provider to repurchase up to 1.3% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board of directors believes its shares are undervalued.

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In other news, CEO Richard G. Thornberry purchased 15,000 shares of Radian Group stock in a transaction dated Friday, August 18th. The stock was purchased at an average cost of $16.78 per share, for a total transaction of $251,700.00. Following the transaction, the chief executive officer now directly owns 15,000 shares of the company’s stock, valued at $251,700. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Richard G. Thornberry purchased 5,000 shares of Radian Group stock in a transaction dated Monday, August 21st. The shares were purchased at an average price of $16.54 per share, with a total value of $82,700.00. Following the completion of the transaction, the chief executive officer now directly owns 20,000 shares in the company, valued at $330,800. The disclosure for this purchase can be found here. 1.06% of the stock is owned by insiders.

Several institutional investors and hedge funds have recently added to or reduced their stakes in RDN. Zurcher Kantonalbank Zurich Cantonalbank grew its position in shares of Radian Group by 11.5% during the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 7,781 shares of the insurance provider’s stock valued at $127,000 after purchasing an additional 803 shares in the last quarter. Skba Capital Management LLC purchased a new position in shares of Radian Group during the 2nd quarter valued at $170,000. Zacks Investment Management purchased a new position in shares of Radian Group during the 2nd quarter valued at $175,000. ETRADE Capital Management LLC purchased a new position in shares of Radian Group during the 2nd quarter valued at $183,000. Finally, Alpine Woods Capital Investors LLC grew its position in shares of Radian Group by 9.5% during the 2nd quarter. Alpine Woods Capital Investors LLC now owns 11,510 shares of the insurance provider’s stock valued at $188,000 after purchasing an additional 1,000 shares in the last quarter. Hedge funds and other institutional investors own 89.97% of the company’s stock.

Radian Group Company Profile

Radian Group Inc is an insurance 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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