Donald Smith & CO. Inc. Trims Stock Position in Radian Group Inc. $RDN

Donald Smith & CO. Inc. cut its stake in shares of Radian Group Inc. (NYSE:RDN) by 46.6% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 1,065,289 shares of the insurance provider’s stock after selling 928,589 shares during the period. Donald Smith & CO. Inc. owned approximately 0.79% of Radian Group worth $38,372,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently bought and sold shares of RDN. Geneos Wealth Management Inc. grew its position in shares of Radian Group by 191.3% during the first quarter. Geneos Wealth Management Inc. now owns 871 shares of the insurance provider’s stock worth $29,000 after buying an additional 572 shares in the last quarter. Covestor Ltd increased its position in Radian Group by 42.6% during the first quarter. Covestor Ltd now owns 1,927 shares of the insurance provider’s stock worth $64,000 after buying an additional 576 shares during the period. EverSource Wealth Advisors LLC raised its position in Radian Group by 94.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,860 shares of the insurance provider’s stock valued at $67,000 after purchasing an additional 901 shares during the last quarter. Allworth Financial LP grew its holdings in shares of Radian Group by 1,049.7% during the second quarter. Allworth Financial LP now owns 1,897 shares of the insurance provider’s stock worth $68,000 after buying an additional 1,732 shares during the last quarter. Finally, Virtus Advisers LLC purchased a new position in shares of Radian Group in the 1st quarter valued at approximately $88,000. 95.33% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities research analysts have commented on RDN shares. UBS Group decreased their target price on shares of Radian Group from $43.00 to $40.00 and set a “neutral” rating on the stock in a research report on Wednesday, October 15th. Weiss Ratings reaffirmed a “buy (a-)” rating on shares of Radian Group in a research note on Monday, December 1st. Zacks Research upgraded shares of Radian Group from a “hold” rating to a “strong-buy” rating in a report on Monday, September 22nd. Finally, Barclays upped their target price on Radian Group from $35.00 to $37.00 and gave the company a “cautious” rating in a research note on Monday, October 6th. Two analysts have rated the stock with a Strong Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $38.00.

Insider Activity

In other news, EVP Eric Ray sold 13,957 shares of Radian Group stock in a transaction that occurred on Tuesday, December 2nd. The shares were sold at an average price of $35.60, for a total value of $496,869.20. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Edward J. Hoffman sold 10,000 shares of the company’s stock in a transaction dated Thursday, September 18th. The shares were sold at an average price of $37.00, for a total transaction of $370,000.00. Following the sale, the executive vice president directly owned 153,708 shares of the company’s stock, valued at $5,687,196. This represents a 6.11% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 2.01% of the company’s stock.

Radian Group Stock Performance

Radian Group stock opened at $34.73 on Friday. The stock has a market cap of $4.70 billion, a P/E ratio of 8.66 and a beta of 0.83. The company has a current ratio of 1.67, a quick ratio of 1.67 and a debt-to-equity ratio of 0.24. Radian Group Inc. has a 52 week low of $29.32 and a 52 week high of $38.84. The stock has a 50 day moving average of $34.57 and a 200-day moving average of $34.63.

Radian Group (NYSE:RDN) last released its earnings results on Wednesday, November 5th. The insurance provider reported $1.15 earnings per share for the quarter, beating the consensus estimate of $0.95 by $0.20. The firm had revenue of $303.19 million during the quarter, compared to analyst estimates of $308.77 million. Radian Group had a net margin of 45.90% and a return on equity of 13.29%. The firm’s revenue for the quarter was down 3.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.03 earnings per share. On average, analysts expect that Radian Group Inc. will post 3.79 EPS for the current fiscal year.

Radian Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 9th. Stockholders of record on Monday, November 24th will be issued a $0.255 dividend. The ex-dividend date is Monday, November 24th. This represents a $1.02 annualized dividend and a dividend yield of 2.9%. Radian Group’s dividend payout ratio is 25.44%.

Radian Group Company Profile

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.