Zacks Investment Research upgraded shares of Radian Group (NYSE:RDN) from a hold rating to a buy rating in a research note published on Friday. The brokerage currently has $22.00 price objective on the insurance provider’s stock.
According to Zacks, “Shares of Radian have outperformed the insurance industry in a year’s time. 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. Radian intends to position its Service segment for continued profitability. EBITDA margin for the Services segment is expected in the 10-15% range and earnings to grow an annual run rate of $150 million to $175 million, beginning in the second half of 2018. Solid capital position bodes well. However, stricter regulations, rising mortgage rates and a competitive market pose as risks.”
RDN has been the subject of several other reports. BTIG Research reaffirmed a buy rating and set a $26.00 price objective (up from $22.00) on shares of Radian Group in a report on Wednesday, December 20th. Wells Fargo reiterated a hold rating on shares of Radian Group in a research note on Thursday, January 18th. Deutsche Bank upgraded shares of Radian Group from a hold rating to a buy rating and upped their target price for the company from $24.00 to $28.00 in a research note on Monday, January 8th. B. Riley cut shares of Radian Group from a buy rating to a neutral rating and set a $22.00 target price for the company. in a research note on Thursday, January 4th. Finally, Royal Bank of Canada assumed coverage on shares of Radian Group in a research note on Wednesday, December 20th. They set an outperform rating and a $26.00 target price for the company. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and ten have given a buy rating to the company. The company presently has a consensus rating of Buy and an average target price of $24.48.
NYSE RDN opened at $19.14 on Friday. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 0.34. The firm has a market cap of $4,134.85, a P/E ratio of 10.52, a PEG ratio of 1.22 and a beta of 1.52. Radian Group has a 1 year low of $15.58 and a 1 year high of $23.49.
Radian Group (NYSE:RDN) last posted its quarterly earnings data on Thursday, February 1st. The insurance provider reported $0.51 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.44 by $0.07. The business had revenue of $317.90 million during the quarter, compared to the consensus estimate of $322.32 million. Radian Group had a net margin of 9.91% and a return on equity of 13.53%. Radian Group’s quarterly revenue was up 15.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.41 EPS. equities research analysts expect that Radian Group will post 2.41 earnings per share for the current year.
A number of large investors have recently added to or reduced their stakes in RDN. APG Asset Management N.V. raised its stake in Radian Group by 159.3% during the 4th quarter. APG Asset Management N.V. now owns 1,617,100 shares of the insurance provider’s stock valued at $27,755,000 after purchasing an additional 993,400 shares during the last quarter. Vaughan Nelson Investment Management L.P. raised its stake in shares of Radian Group by 63.8% in the 4th quarter. Vaughan Nelson Investment Management L.P. now owns 2,198,600 shares of the insurance provider’s stock valued at $45,313,000 after buying an additional 856,375 shares in the last quarter. Investec Asset Management LTD raised its stake in shares of Radian Group by 23.0% in the 4th quarter. Investec Asset Management LTD now owns 4,362,115 shares of the insurance provider’s stock valued at $89,903,000 after buying an additional 815,149 shares in the last quarter. Avestar Capital LLC acquired a new position in shares of Radian Group in the 4th quarter valued at $12,564,000. Finally, Two Sigma Investments LP raised its stake in shares of Radian Group by 474.4% in the 4th quarter. Two Sigma Investments LP now owns 606,116 shares of the insurance provider’s stock valued at $12,492,000 after buying an additional 500,586 shares in the last quarter. Hedge funds and other institutional investors own 94.48% of the company’s stock.
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Radian Group Company Profile
Radian Group Inc, through its subsidiaries, provides mortgage and real estate products and services in the United States. It operates through two segments, Mortgage Insurance and Services. The Mortgage Insurance segment offers credit-related insurance coverage, primarily through private mortgage insurance, as well as other credit risk management solutions to mortgage lending institutions; and primary mortgage insurance coverage on residential first-lien mortgage loans.
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