Radian Group (NYSE:RDN) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a report issued on Thursday. The firm currently has a $24.00 price objective on the insurance provider’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 15.66% from the stock’s current price.
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.”
RDN has been the topic of a number of other reports. BTIG Research reiterated a “buy” rating and set a $26.00 price target (up from $22.00) on shares of Radian Group in a research note on Wednesday, December 20th. Deutsche Bank boosted their price target on shares of Radian Group from $21.00 to $23.00 and gave the stock a “buy” rating in a research note on Wednesday, October 25th. B. Riley lowered shares of Radian Group from a “buy” rating to a “neutral” rating and set a $22.00 price target on the stock. in a research note on Thursday. Compass Point reiterated a “neutral” rating and set a $21.25 price target on shares of Radian Group in a research note on Saturday, October 14th. Finally, FBR & Co reiterated a “buy” rating on shares of Radian Group in a research note on Thursday, October 26th. One 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 assigned a strong buy rating to the company’s stock. Radian Group currently has an average rating of “Buy” and a consensus price target of $23.43.
Radian Group (NYSE:RDN) last issued 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 company had revenue of $312.05 million for the quarter, compared to analyst estimates of $321.10 million. Radian Group had a net margin of 14.88% and a return on equity of 12.99%. The business’s revenue for the quarter was down 2.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.41 earnings per share. equities analysts forecast that Radian Group will post 1.76 earnings per share for the current fiscal year.
Several hedge funds have recently added to or reduced their stakes in the stock. Capital World Investors boosted its holdings in Radian Group by 42.7% in the second quarter. Capital World Investors now owns 4,930,000 shares of the insurance provider’s stock valued at $80,606,000 after purchasing an additional 1,475,000 shares in the last quarter. Northern Trust Corp boosted its holdings in Radian Group by 24.6% in the second quarter. Northern Trust Corp now owns 5,305,329 shares of the insurance provider’s stock valued at $86,742,000 after purchasing an additional 1,048,954 shares in the last quarter. Ameriprise Financial Inc. boosted its holdings in Radian Group by 59.3% in the third quarter. Ameriprise Financial Inc. now owns 2,601,594 shares of the insurance provider’s stock valued at $48,623,000 after purchasing an additional 968,914 shares in the last quarter. Vanguard Group Inc. boosted its holdings in Radian Group by 5.0% in the second quarter. Vanguard Group Inc. now owns 18,116,304 shares of the insurance provider’s stock valued at $296,201,000 after purchasing an additional 859,950 shares in the last quarter. Finally, Prudential Financial Inc. boosted its holdings in Radian Group by 57.0% in the third quarter. Prudential Financial Inc. now owns 2,085,847 shares of the insurance provider’s stock valued at $38,984,000 after purchasing an additional 757,490 shares in the last quarter. Hedge funds and other institutional investors own 91.43% of the company’s stock.
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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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