Latest news with #RadianGroup
Globe and Mail
6 days ago
- Business
- Globe and Mail
Radian Declares Regular Quarterly Dividend
Radian Group Inc. (NYSE: RDN) announced today that the company's Board of Directors approved a regular quarterly dividend on its common stock in the amount of $0.255 per share, payable September 9, 2025, to stockholders of record as of August 25, 2025. About Radian Radian is a catalyst for homeownership that transforms risk into opportunity through services and technologies that empower housing and capital market participants to act with confidence. The Radian family of companies is shaping the future of mortgage and real estate services through products and services that include industry-leading mortgage insurance and a comprehensive suite of mortgage, risk, real estate, and title services. Visit to see how we're creating possibilities for a place to call home.
Yahoo
6 days ago
- Business
- Yahoo
Radian Outperforms Industry, Trades at Discount: How to Play the Stock
Shares of Radian Group Inc. RDN have gained 9.3% in the year-to-date period, outperforming its industry, the Finance sector, and the Zacks S&P 500 composite's growth of 2.6%, 9.1% and 8.3%, respectively. The insurer has a market capitalization of $4.69 billion. The average volume of shares traded in the last three months was 1.2 million. Image Source: Zacks Investment Research RDN Shares are Affordable RDN shares are trading at a price-to-book value of 1.05X, lower than the industry average of 2.05X, the Finance sector's 4.23X, and the Zacks S&P 500 Composite's 8.2X. Its pricing, at a discount to the industry average, gives a better entry point for investors. Shares of other insurers like Assurant, Inc. AIZ, Enact Holdings, Inc. ACT, and CNO Financial Group, Inc. CNO are also trading at a discount to the industry average. RDN Trading Above 50-Day and 200-Day Moving Averages Shares of Radian closed at $34.66 on Aug. 12, near its 52-week high of $36.99. This proximity underscores investor confidence. It has the ingredients for further price appreciation. The stock is trading above the 50-day and 200-day simple moving averages (SMA) of $34.35 and $33.37, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data. Image Source: Zacks Investment Research RDN's Encouraging Growth Projections The Zacks Consensus Estimate for Radian Group's 2025 revenues is pegged at $1.25 billion, implying a year-over-year improvement of 0.2%.The consensus estimate for 2026 earnings per share and revenues indicates an increase of 0.3% and 2.6%, respectively, from the corresponding 2025 Group has a solid surprise history. The multi-line insurer has a solid track record of beating earnings estimates in each of the last four quarters, with an average being 11.15%. Optimistic Analyst Sentiment on RDN Each of the two analysts covering the stock has raised estimates for 2025, and one analyst has raised the same for 2026 over the past 30 days. Thus, the Zacks Consensus Estimate for 2025 and 2026 moved 3.7% and 1.2% north, respectively, in the last 30 days. Image Source: Zacks Investment Research Average Target Price for RDN Suggests Upside Based on short-term price targets offered by six analysts, the Zacks average price target is $37.00 per share. The average suggests a potential 8.2% upside from the last closing price. Image Source: Zacks Investment Research RDN's Favorable Return on Capital Return on invested capital (ROIC) has been increasing over the last few quarters while the company raised its capital investment over the same time frame. This reflects RDN's efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 6.8%, better than the industry average of 1.9%. Key Points to Note for RDN Radian Group's heightened focus on the core business and services with higher growth potential ensures a predictable and recurring fee-based revenue business, combined with increasing annual persistency, should drive continued growth of the insurance-in-force portfolio. Radian Group's mortgage insurance portfolio creates a strong foundation for future earnings. RDN has been witnessing a declining pattern of claim filings. We expect paid claims to decline further, thus strengthening the balance sheet and improving its financial mortgage insurer has been strengthening its capital position with capital contributions, reinsurance transactions, and cash position. This helps Radian Group engage in wealth distribution via dividend hikes and share buybacks. Conclusion Based on recent industry forecasts, Radian expects the private mortgage insurance market in 2025 to be approximately $300 billion, in line with recent years. Improving mortgage insurance portfolio, declining claims, a solid capital position, and effective capital deployment should continue to favor mortgage insurers over the long term. The 4.1% increase in quarterly dividend in the first quarter of 2025 marks the sixth consecutive year. RDN has increased the quarterly dividend, which has more than doubled over the past five years. Its current dividend yield of 2.8% betters the industry average of 2.5%, making it an attractive pick for yield-seeking solid growth projections as well as attractive valuations are other positives. Coupled with optimistic analyst sentiment and favorable ROIC, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report Assurant, Inc. (AIZ) : Free Stock Analysis Report Radian Group Inc. (RDN) : Free Stock Analysis Report Enact Holdings, Inc. (ACT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-07-2025
- Business
- Yahoo
Radian Group (NYSE:RDN) Misses Q2 Revenue Estimates
Mortgage insurance provider Radian Group (NYSE:RDN) fell short of the market's revenue expectations in Q2 CY2025, with sales flat year on year at $318 million. Its non-GAAP profit of $1.01 per share was 3.6% above analysts' consensus estimates. Is now the time to buy Radian Group? Find out in our full research report. Radian Group (RDN) Q2 CY2025 Highlights: Net Premiums Earned: $237.5 million (flat year on year) Revenue: $318 million vs analyst estimates of $324.2 million (flat year on year, 1.9% miss) Pre-Tax Profit Margin: 55% (3.5 percentage point year-on-year decrease) Adjusted EPS: $1.01 vs analyst estimates of $0.98 (3.6% beat) Market Capitalization: $4.56 billion 'We reported strong performance for Radian in the second quarter, increasing book value per share by 12% year-over-year, generating net income of $142 million and delivering a return on equity of 12.5%. Our primary mortgage insurance in force, a key driver of future earnings for our company, grew to another all-time high of $277 billion,' said Radian's Chief Executive Officer Rick Thornberry. Company Overview Founded during the housing boom of 1977 and weathering multiple real estate cycles since, Radian Group (NYSE:RDN) provides mortgage insurance and real estate services, helping lenders manage risk and homebuyers achieve affordable homeownership. Revenue Growth Insurers earn revenue three ways. The core insurance business itself, often called underwriting and represented in the income statement as premiums earned, is one way. Investment income from investing the 'float' (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities is the second way. Fees from various sources such as policy administration, annuities, or other value-added services is the third. Over the last five years, Radian Group's demand was weak and its revenue declined by 2.5% per year. This wasn't a great result and suggests it's a low quality business. We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Radian Group's annualized revenue growth of 3.1% over the last two years is above its five-year trend, but we were still disappointed by the results. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. This quarter, Radian Group missed Wall Street's estimates and reported a rather uninspiring 1% year-on-year revenue decline, generating $318 million of revenue. Net premiums earned made up 76.9% of the company's total revenue during the last five years, meaning insurance operations are Radian Group's largest source of revenue. While insurers generate revenue from multiple sources, investors view net premiums earned as the cornerstone - its direct link to core operations stands in sharp contrast to the unpredictability of investment returns and fees. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Book Value Per Share (BVPS) Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float–premiums collected but not yet paid out–are invested, creating an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less liabilities (claim reserves, debt, future policy benefits). BVPS is essentially the residual value for shareholders. We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate. Radian Group's BVPS grew at a solid 9.8% annual clip over the last five years. BVPS growth has also accelerated recently, growing by 11.9% annually over the last two years from $26.51 to $33.18 per share. Key Takeaways from Radian Group's Q2 Results Radian's revenue missed and its net premiums earned fell slightly short of Wall Street's estimates, which wasn't a good start. On the other hand, EPS beat. Overall, this was a mixed quarter. The stock remained flat at $33.51 immediately after reporting. The latest quarter from Radian Group's wasn't that good. One earnings report doesn't define a company's quality, though, so let's explore whether the stock is a buy at the current price. If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.
Business Insider
07-07-2025
- Business
- Business Insider
Radian Group downgraded to Market Perform from Outperform at Keefe Bruyette
Keefe Bruyette downgraded Radian Group (RDN) to Market Perform from Outperform with an unchanged price target of $38. The firm says that while operating trends for the mortgage insurers have remained strong year-to-date, it sees a lack of near-term positive catalysts. Credit risk could increase modestly in the back half of 2025 as the pace of home price appreciation is likely to slow, the analyst tells investors in a research note. As such, Keefe sees mortgage insurer valuations as range-bound. It downgraded three names in the sector. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Yahoo
03-07-2025
- Business
- Yahoo
Radian Hits 52-Week High: Time to Add the Stock for Better Returns?
Shares of Radian Group Inc. RDN closed at $36.32 on July 2, near its 52-week high of $37.86. This proximity underscores investor confidence. It has the ingredients for further price appreciation. The stock is trading above the 50-day and 200-day simple moving averages (SMA) of $33.94 and $33.48, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price a capitalization of $4.87 billion, the average number of shares traded in the last three months was 1.4 million. Image Source: Zacks Investment Research Shares of Radian Group have gained 14.5% year to date, outperforming its industry and the Finance sector and the Zacks S&P 500 composite's growth of 7.7% 8.9% and 4.8%, respectively. Image Source: Zacks Investment Research RDN has outperformed its peers, Old Republic International Corporation ORI, which has gained 3.7% year to date, while MetLife, Inc. MET and Assurant, Inc. AIZ have lost 2.1% and 10%, respectively. Radian Group shares are trading at a forward price-to-book value of 1.12X, lower than the industry average of 2.73X, the Finance sector's 4.27X and the Zacks S&P 500 Composite's 8.33X. Its pricing, at a discount to the industry average, gives a better entry point to investors. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Radian Group's 2025 revenues is pegged at $1.26 billion, implying a year-over-year improvement of 0.9%. The consensus estimate for 2026 earnings per share and revenues indicates an increase of 3% and 3.2%, respectively, from the corresponding 2025 Group has a solid surprise history. The multi-line insurer has a solid track record of beating earnings estimates in each of the last four quarters, the average being 12.45%. One of the two analysts covering the stock has raised estimates for 2025 and 2026 over the past 60 days. Thus, the Zacks Consensus Estimate for 2025 and 2026 moved 1.06% and 1.3% north, respectively, in the last 60 days. Based on short-term price targets offered by six analysts, the Zacks average price target is $36.83 per share. The average suggests a potential 0.74% upside from the last closing price. Image Source: Zacks Investment Research Radian Group's heightened focus on the core business and services with higher growth potential ensures a predictable and recurring fee-based revenue business, combined with increasing annual persistency, should drive continued growth of the insurance-in-force portfolio. Radian Group's mortgage insurance portfolio creates a strong foundation for future earnings. RDN has been witnessing a declining pattern of claim filings. We expect paid claims to decline further, thus strengthening the balance sheet and improving its financial mortgage insurer has been strengthening its capital position with capital contributions, reinsurance transactions and cash position. This helps Radian Group engage in wealth distribution via dividend hikes and share buybacks. Based on recent industry forecasts, Radian Group expects the private mortgage insurance market in 2025 to be approximately $300 billion, in line with recent years. Improving mortgage insurance portfolio, declining claims, a solid capital position and effective capital deployment should continue to favor mortgage insurers over the long term. The 4.1% increase in quarterly dividend in the first quarter of 2025 marks the sixth consecutive year. RDN has increased the quarterly dividend, which has more than doubled over the past five years. Its current dividend yield of 2.8% betters the industry average of 2.5%, making it an attractive pick for yield-seeking solid growth projections as well as attractive valuations are other positives. Coupled with optimistic analyst sentiment and favorable ROIC, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MetLife, Inc. (MET) : Free Stock Analysis Report Assurant, Inc. (AIZ) : Free Stock Analysis Report Radian Group Inc. (RDN) : Free Stock Analysis Report Old Republic International Corporation (ORI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
