Radian Group (NYSE:RDN) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Thursday. The brokerage currently has a $24.00 price target on the insurance provider’s stock. Zacks Investment Research‘s price objective indicates a potential upside of 15.05% from the stock’s previous close.
According to Zacks, “Shares of Radian have outperformed the insurance industry in a year. It is poised for growth on expansive mortgage and real estate service offerings, declining delinquency, lower levels of paid claims and improving risk-based capital ratio. Radian Group is restructuring its business by intensifying focus on core business and services with higher-growth potential besides more predictable and recurring fee-based revenues. In its recent endeavor, it divested Clayton EuroRisk to focus on core business. Radian intends to position its Service segment for continued profitability. EBITDA margin for the Services segment is expected in 10-15% range over time. The company’s initiatives to solidify the capital position by extending debt maturities and enhancing financial flexibility bode well. However, stricter regulations, rising mortgage rates and a competitive market pose as risks. Restructuring cost is estimated to be $20 million.”
A number of other research firms have also recently issued reports on RDN. ValuEngine cut shares of Radian Group from a “strong-buy” rating to a “buy” rating in a report on Thursday, September 7th. Royal Bank of Canada initiated coverage on shares of Radian Group in a report on Wednesday, December 20th. They set an “outperform” rating and a $26.00 target price for the company. Compass Point raised shares of Radian Group from a “neutral” rating to a “buy” rating and raised their target price for the stock from $21.75 to $24.75 in a report on Friday, October 27th. B. Riley reissued a “buy” rating on shares of Radian Group in a report on Monday, November 6th. Finally, Wells Fargo & Co initiated coverage on shares of Radian Group in a report on Tuesday, November 28th. They set a “market perform” rating and a $22.00 target price for the company. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, seven have issued a buy rating and two have issued a strong buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus price target of $23.43.
Radian Group (NYSE:RDN) last posted its quarterly earnings results on Thursday, October 26th. The insurance provider reported $0.46 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.42 by $0.04. The business had revenue of $312.05 million during the quarter, compared to analysts’ expectations of $321.10 million. Radian Group had a net margin of 14.88% and a return on equity of 12.99%. The business’s quarterly revenue was down 2.8% on a year-over-year basis. During the same quarter last year, the company posted $0.41 earnings per share. sell-side analysts forecast that Radian Group will post 1.76 earnings per share for the current year.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in RDN. Wealthcare Advisory Partners LLC acquired a new stake in shares of Radian Group in the third quarter valued at about $110,000. Zurcher Kantonalbank Zurich Cantonalbank grew its position in shares of Radian Group by 11.5% in the second 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 during the period. Skba Capital Management LLC acquired a new stake in shares of Radian Group in the second quarter valued at about $170,000. Zacks Investment Management acquired a new stake in shares of Radian Group in the second quarter valued at about $175,000. Finally, ETRADE Capital Management LLC acquired a new stake in shares of Radian Group in the second quarter valued at about $183,000. 91.43% of the stock is owned by institutional investors.
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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