Radian Group (NYSE:RDN) Announces Earnings Results, Misses Estimates By $0.20 EPS

Radian Group (NYSE:RDN) released its earnings results on Wednesday. The insurance provider reported $1.14 earnings per share for the quarter, missing the consensus estimate of $1.34 by ($0.20), Zacks reports. The company had revenue of $574.96 million for the quarter, compared to analysts’ expectations of $556.55 million. Radian Group had a net margin of 40.50% and a return on equity of 13.57%. Radian Group’s revenue for the quarter was up 92.3% on a year-over-year basis. During the same quarter last year, the firm posted $1.01 earnings per share.

Radian Group Stock Down 1.3%

Shares of RDN opened at $39.13 on Thursday. The business’s 50 day moving average is $36.82 and its 200 day moving average is $35.23. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 0.16. Radian Group has a 12-month low of $31.50 and a 12-month high of $41.05. The company has a market capitalization of $5.20 billion, a PE ratio of 9.64, a price-to-earnings-growth ratio of 1.00 and a beta of 0.72.

Radian Group Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 17th. Investors of record on Tuesday, June 2nd were paid a dividend of $0.255 per share. This represents a $1.02 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend was Tuesday, June 2nd. Radian Group’s dividend payout ratio (DPR) is 25.12%.

Insiders Place Their Bets

In other Radian Group news, Director Margaret Anne Leyden sold 2,070 shares of the stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $34.59, for a total transaction of $71,601.30. Following the completion of the sale, the director directly owned 6,864 shares of the company’s stock, valued at $237,425.76. This trade represents a 23.17% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Michael S. Weinbach acquired 120,487 shares of Radian Group stock in a transaction dated Monday, June 1st. The shares were bought at an average price of $33.89 per share, for a total transaction of $4,083,304.43. Following the transaction, the chief executive officer owned 120,487 shares of the company’s stock, valued at approximately $4,083,304.43. The trade was a ? increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold a total of 30,516 shares of company stock worth $1,127,576 over the last ninety days. 2.03% of the stock is owned by company insiders.

Institutional Trading of Radian Group

Several hedge funds have recently bought and sold shares of RDN. Charles Schwab Investment Management Inc. increased its holdings in shares of Radian Group by 1.1% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 5,959,463 shares of the insurance provider’s stock worth $214,481,000 after purchasing an additional 63,437 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in Radian Group by 5.0% during the fourth quarter. Dimensional Fund Advisors LP now owns 5,717,423 shares of the insurance provider’s stock valued at $205,773,000 after buying an additional 274,222 shares during the last quarter. Balyasny Asset Management L.P. boosted its stake in Radian Group by 16.8% during the fourth quarter. Balyasny Asset Management L.P. now owns 2,188,624 shares of the insurance provider’s stock valued at $78,769,000 after buying an additional 315,575 shares during the last quarter. Morgan Stanley boosted its stake in Radian Group by 0.8% during the fourth quarter. Morgan Stanley now owns 1,648,747 shares of the insurance provider’s stock valued at $59,338,000 after buying an additional 12,560 shares during the last quarter. Finally, JPMorgan Chase & Co. grew its holdings in Radian Group by 6.6% during the 4th quarter. JPMorgan Chase & Co. now owns 1,090,012 shares of the insurance provider’s stock valued at $39,230,000 after buying an additional 67,167 shares in the last quarter. Hedge funds and other institutional investors own 95.33% of the company’s stock.

Wall Street Analyst Weigh In

RDN has been the subject of a number of analyst reports. Bank of America upgraded Radian Group from an “underperform” rating to a “buy” rating and upped their price target for the stock from $35.00 to $43.00 in a research report on Wednesday, April 29th. Zacks Research cut Radian Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 20th. Royal Bank Of Canada initiated coverage on Radian Group in a research report on Friday, May 22nd. They set an “outperform” rating and a $47.00 price objective on the stock. Weiss Ratings reissued a “buy (b)” rating on shares of Radian Group in a report on Tuesday, June 16th. Finally, Keefe, Bruyette & Woods lifted their price target on shares of Radian Group from $43.00 to $46.00 and gave the company an “outperform” rating in a report on Thursday, June 25th. Five analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $43.17.

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.