Zacks Research Downgrades Radian Group (NYSE:RDN) to Strong Sell

Radian Group (NYSE:RDN) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Tuesday, Zacks reports.

Several other brokerages have also weighed in on RDN. BTIG Research began coverage on Radian Group in a report on Tuesday, September 22nd. They issued a “buy” rating and a $48.00 price objective for the company. Keefe, Bruyette & Woods dropped their price target on shares of Radian Group from $46.00 to $44.00 and set an “outperform” rating on the stock in a research report on Tuesday, August 11th. Wall Street Zen raised shares of Radian Group from a “hold” rating to a “buy” rating in a report on Saturday, September 19th. Weiss Ratings raised shares of Radian Group from a “buy (b)” rating to a “buy (b+)” rating in a report on Monday, September 28th. Finally, Barclays raised their price objective on shares of Radian Group from $35.00 to $36.00 and gave the company an “equal weight” rating in a research report on Monday. Six equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Radian Group currently has an average rating of “Moderate Buy” and a consensus price target of $43.14.

Radian Group Stock Performance

RDN opened at $33.67 on Tuesday. The company has a market capitalization of $4.45 billion, a price-to-earnings ratio of 8.66, a price-to-earnings-growth ratio of 0.83 and a beta of 0.71. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.60 and a quick ratio of 0.60. Radian Group has a 1-year low of $30.53 and a 1-year high of $41.05. The business has a 50 day moving average price of $35.80 and a two-hundred day moving average price of $35.86.

Radian Group (NYSE:RDN) last issued its quarterly earnings results on Thursday, August 6th. The insurance provider reported $1.14 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.34 by ($0.20). Radian Group had a net margin of 32.60% and a return on equity of 13.65%. The firm had revenue of $574.96 million for the quarter, compared to the consensus estimate of $556.55 million. During the same period in the previous year, the business posted $1.01 earnings per share. The business’s revenue for the quarter was up 92.3% compared to the same quarter last year. Research analysts predict that Radian Group will post 4.86 EPS for the current fiscal year.

Insider Activity

In related news, EVP Meghan Bartholomew sold 7,812 shares of Radian Group stock in a transaction on Monday, September 14th. The stock was sold at an average price of $35.94, for a total value of $280,763.28. Following the transaction, the executive vice president directly owned 39,203 shares in the company, valued at $1,408,955.82. The trade was a 16.62% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.03% of the stock is owned by insiders.

Institutional Investors Weigh In On Radian Group

Several hedge funds have recently modified their holdings of RDN. BlackRock Inc. purchased a new position in Radian Group in the 2nd quarter worth about $728,072,000. Dimensional Fund Advisors LP lifted its stake in Radian Group by 4.0% during the first quarter. Dimensional Fund Advisors LP now owns 5,948,335 shares of the insurance provider’s stock valued at $196,773,000 after buying an additional 230,912 shares in the last quarter. Donald Smith & CO. Inc. acquired a new position in shares of Radian Group in the second quarter worth about $163,104,000. Caisse de depot et placement du Quebec acquired a new position in shares of Radian Group in the second quarter worth about $89,334,000. Finally, Bruni J V & Co. Co. acquired a new position in shares of Radian Group in the second quarter worth about $59,355,376. 95.33% of the stock is owned by hedge funds and other institutional investors.

Radian Group Company Profile

Radian Group Inc (NYSE: RDN) is a financial services company focused on supporting homeownership and the U.S. residential real estate market. Its principal business is mortgage insurance, which helps protect lenders and investors against losses when borrowers default on certain residential mortgage loans. Through its mortgage insurance operations, Radian serves mortgage lenders, banks, credit unions and other housing-finance participants.

The company also provides services and technology intended to support the mortgage and homeownership lifecycle.