Two Sigma Investments LP Makes New Investment in Radian Group Inc. (NYSE:RDN)

Two Sigma Investments LP bought a new stake in Radian Group Inc. (NYSE:RDN) during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm bought 12,903 shares of the insurance provider’s stock, valued at approximately $409,000.

A number of other institutional investors have also modified their holdings of RDN. Picton Mahoney Asset Management grew its position in Radian Group by 54.3% during the fourth quarter. Picton Mahoney Asset Management now owns 972 shares of the insurance provider’s stock worth $31,000 after buying an additional 342 shares during the period. V Square Quantitative Management LLC grew its holdings in shares of Radian Group by 61.5% in the 4th quarter. V Square Quantitative Management LLC now owns 1,274 shares of the insurance provider’s stock worth $40,000 after acquiring an additional 485 shares during the period. Covestor Ltd increased its stake in Radian Group by 35.6% in the 4th quarter. Covestor Ltd now owns 1,351 shares of the insurance provider’s stock valued at $43,000 after purchasing an additional 355 shares in the last quarter. Smartleaf Asset Management LLC increased its stake in Radian Group by 124.8% in the 4th quarter. Smartleaf Asset Management LLC now owns 2,378 shares of the insurance provider’s stock valued at $75,000 after purchasing an additional 1,320 shares in the last quarter. Finally, Jones Financial Companies Lllp raised its holdings in Radian Group by 735.8% during the fourth quarter. Jones Financial Companies Lllp now owns 2,407 shares of the insurance provider’s stock worth $76,000 after purchasing an additional 2,119 shares during the last quarter. Institutional investors and hedge funds own 95.33% of the company’s stock.

Insider Buying and Selling at Radian Group

In other news, EVP Eric Ray sold 30,000 shares of the firm’s stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $33.30, for a total transaction of $999,000.00. Following the sale, the executive vice president now owns 13,957 shares of the company’s stock, valued at $464,768.10. This trade represents a 68.25% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Edward J. Hoffman sold 10,000 shares of Radian Group stock in a transaction dated Wednesday, June 4th. The shares were sold at an average price of $33.72, for a total value of $337,200.00. Following the completion of the sale, the executive vice president now directly owns 201,586 shares in the company, valued at $6,797,479.92. This represents a 4.73% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 56,378 shares of company stock valued at $1,884,414 in the last ninety days. Company insiders own 2.01% of the company’s stock.

Radian Group Price Performance

Shares of NYSE:RDN opened at $33.40 on Tuesday. The stock has a market cap of $4.49 billion, a price-to-earnings ratio of 8.50, a PEG ratio of 1.73 and a beta of 0.71. The company has a debt-to-equity ratio of 0.50, a current ratio of 2.87 and a quick ratio of 2.01. Radian Group Inc. has a 12 month low of $29.32 and a 12 month high of $37.86. The stock’s 50 day moving average price is $32.84 and its 200 day moving average price is $32.86.

Radian Group (NYSE:RDN) last posted its quarterly earnings data on Wednesday, April 30th. The insurance provider reported $0.99 earnings per share for the quarter, topping the consensus estimate of $0.95 by $0.04. The firm had revenue of $318.11 million for the quarter, compared to analysts’ expectations of $326.99 million. Radian Group had a net margin of 46.85% and a return on equity of 13.96%. The company’s quarterly revenue was down .4% compared to the same quarter last year. During the same period in the previous year, the company posted $1.03 EPS. Equities research analysts anticipate that Radian Group Inc. will post 3.79 earnings per share for the current fiscal year.

Radian Group announced that its Board of Directors has initiated a share buyback plan on Wednesday, May 21st that allows the company to repurchase $750.00 million in shares. This repurchase authorization allows the insurance provider to reacquire up to 16.9% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its stock is undervalued.

Radian Group Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 17th. Investors of record on Monday, June 2nd will be paid a dividend of $0.255 per share. This represents a $1.02 annualized dividend and a yield of 3.05%. The ex-dividend date is Monday, June 2nd. Radian Group’s payout ratio is currently 25.95%.

Analyst Ratings Changes

A number of brokerages have commented on RDN. UBS Group increased their target price on Radian Group from $34.00 to $36.00 and gave the company a “neutral” rating in a report on Monday, May 5th. Compass Point lowered Radian Group from a “strong-buy” rating to a “hold” rating in a research note on Friday, May 23rd. Finally, Keefe, Bruyette & Woods reiterated an “outperform” rating and set a $38.00 price objective (up previously from $37.00) on shares of Radian Group in a research report on Friday, May 2nd. Four analysts have rated the stock with a hold rating and two have issued a buy rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $36.83.

About Radian Group

Radian Group Inc, together with its subsidiaries, engages in the mortgage and real estate services business in the United States. It operates through two segments, Mortgage Insurance and Homegenius segments. The Mortgage Insurance segment aggregates, manages, and distributes U.S. mortgage credit risk for mortgage lending institutions and mortgage credit investors, through private mortgage insurance on residential first-lien mortgage loans; and other credit risk management solutions, including contract underwriting.