Radian Group (NYSE:RDN) Reaches New 52-Week High – Should You Buy?

Radian Group Inc. (NYSE:RDN) hit a new 52-week high on Tuesday . The company traded as high as $39.82 and last traded at $38.1090, with a volume of 2097629 shares trading hands. The stock had previously closed at $38.01.

Wall Street Analyst Weigh In

Several research firms recently weighed in on RDN. Wall Street Zen downgraded shares of Radian Group from a “buy” rating to a “hold” rating in a report on Sunday. Bank of America upgraded shares of Radian Group from an “underperform” rating to a “buy” rating and boosted their price target for the stock from $35.00 to $43.00 in a research report on Wednesday, April 29th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Radian Group in a research note on Tuesday, June 16th. Royal Bank Of Canada began coverage on shares of Radian Group in a report on Friday, May 22nd. They issued an “outperform” rating and a $47.00 price objective for the company. Finally, Zacks Research lowered shares of Radian Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 20th. Five analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $43.17.

Radian Group Stock Performance

The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 0.16. The company’s 50-day moving average price is $36.13 and its two-hundred day moving average price is $34.81. The company has a market cap of $5.07 billion, a P/E ratio of 9.39, a price-to-earnings-growth ratio of 0.95 and a beta of 0.72.

Radian Group (NYSE:RDN) last released its earnings results on Thursday, May 7th. The insurance provider reported $1.27 EPS for the quarter, topping analysts’ consensus estimates of $1.17 by $0.10. Radian Group had a net margin of 40.50% and a return on equity of 13.57%. The business had revenue of $466.34 million for the quarter, compared to the consensus estimate of $377.83 million. During the same period in the previous year, the firm earned $0.99 EPS. The business’s revenue for the quarter was up 46.6% on a year-over-year basis. As a group, equities analysts forecast that Radian Group Inc. will post 5.17 earnings per share for the current year.

Radian Group Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 17th. Shareholders of record on Tuesday, June 2nd were issued a $0.255 dividend. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $1.02 annualized dividend and a dividend yield of 2.7%. Radian Group’s dividend payout ratio is currently 25.12%.

Insider Activity at Radian Group

In other news, Director Noel Joseph Spiegel sold 4,834 shares of the stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $36.19, for a total transaction of $174,942.46. Following the completion of the sale, the director owned 20,008 shares in the company, valued at approximately $724,089.52. This represents a 19.46% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Michael S. Weinbach acquired 49,513 shares of Radian Group stock in a transaction dated Tuesday, June 2nd. The shares were bought at an average cost of $34.04 per share, with a total value of $1,685,422.52. Following the completion of the purchase, the chief executive officer owned 170,000 shares in the company, valued at approximately $5,786,800. This represents a 41.09% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders have sold 73,525 shares of company stock worth $2,677,891. 2.03% of the stock is owned by corporate insiders.

Institutional Trading of Radian Group

Hedge funds have recently modified their holdings of the business. Mercer Global Advisors Inc. ADV lifted its position in shares of Radian Group by 0.9% in the third quarter. Mercer Global Advisors Inc. ADV now owns 33,365 shares of the insurance provider’s stock worth $1,208,000 after purchasing an additional 288 shares in the last quarter. Hantz Financial Services Inc. boosted its holdings in Radian Group by 26.9% in the fourth quarter. Hantz Financial Services Inc. now owns 1,553 shares of the insurance provider’s stock worth $56,000 after purchasing an additional 329 shares in the last quarter. Smartleaf Asset Management LLC increased its holdings in shares of Radian Group by 14.6% during the 2nd quarter. Smartleaf Asset Management LLC now owns 2,696 shares of the insurance provider’s stock valued at $97,000 after acquiring an additional 344 shares during the last quarter. HighTower Advisors LLC raised its position in shares of Radian Group by 6.1% in the fourth quarter. HighTower Advisors LLC now owns 6,060 shares of the insurance provider’s stock valued at $218,000 after purchasing an additional 349 shares during the period. Finally, Jones Financial Companies Lllp grew its stake in Radian Group by 14.8% in the 1st quarter. Jones Financial Companies Lllp now owns 2,764 shares of the insurance provider’s stock valued at $91,000 after buying an additional 357 shares during the last quarter. Hedge funds and other institutional investors own 95.33% of the company’s stock.

About Radian Group

Radian Group Inc (NYSE:RDN) is a leading provider of private mortgage insurance and related risk management solutions in the United States. Through its primary subsidiary, Radian Guaranty Inc, the company underwrites borrower-paid and lender-paid mortgage insurance that protects lenders and investors from potential losses arising from borrower defaults. Radian’s core business focuses on supporting residential mortgage originations and servicing by offering capital-efficient credit protection and credit risk transfer strategies.

Beyond mortgage insurance, Radian offers an array of real estate transaction services under its Radian Title division.