PNC Financial Services Group Inc. has reduced its stake in Radian Group Inc. by 10.0% as reported in its latest filing with the Securities and Exchange Commission (SEC). The institutional investor now holds 17,292 shares of the insurance company’s stock, valued at approximately $623,000. This adjustment follows the sale of 1,922 shares during the second quarter of 2023.
Other institutional investors have also made significant changes to their positions in Radian Group. Federated Hermes Inc. increased its holdings by 11.8% during the first quarter, now owning 110,772 shares valued at $3.66 million. Similarly, Natixis Advisors LLC boosted its stake by 3.7%, acquiring an additional 10,368 shares for a total of $9.6 million. Jefferies Financial Group Inc. reported a remarkable increase of 169.5% in its holdings, now owning 104,717 shares valued at $3.46 million. Jane Street Group LLC made headlines with a staggering increase of 11,446.4%, now possessing 1,310,517 shares worth $43.34 million.
In a separate transaction, Radian Group’s Executive Vice President, Edward J. Hoffman, sold 10,000 shares on September 18, 2023, for an average price of $37.00, totaling $370,000. Following this sale, Hoffman holds 153,708 shares in the company, valued at around $5.69 million. This transaction represents a 6.11% decline in his ownership percentage. Company insiders currently own 2.01% of Radian Group’s stock.
Radian Group’s Financial Performance
Radian Group recently released its earnings report for the third quarter, revealing an earnings per share (EPS) of $1.15, exceeding analysts’ expectations of $0.95. The company reported total revenue of $303.19 million, slightly below the consensus estimate of $308.77 million. Radian Group achieved a return on equity of 13.25% and a net margin of 45.62%. Despite these results, revenue decreased by 3.3% compared to the same quarter the previous year.
Looking ahead, analysts project Radian Group will post an EPS of $3.79 for the current fiscal year.
Dividend Announcement and Market Analysts’ Insights
Radian Group also announced a quarterly dividend of $0.255 per share, set to be paid on December 9, 2023. Shareholders of record as of November 24, 2023, will receive this dividend, which translates to an annualized figure of $1.02 and a yield of 2.9%. The company’s dividend payout ratio stands at 25.44%.
Market analysts have varying perspectives on Radian Group’s stock. UBS Group recently lowered its target price from $43.00 to $40.00, maintaining a “neutral” rating. In contrast, Zacks Research upgraded Radian Group from a “hold” to a “strong-buy” rating. Weiss Ratings also raised its rating from “buy (b+)” to “buy (a-),” while Barclays increased its target price from $35.00 to $37.00, issuing a “cautious” rating.
Currently, two analysts have rated Radian Group as a strong buy, three have assigned a hold rating, and one has issued a sell rating. According to MarketBeat.com, Radian Group holds a consensus rating of “Moderate Buy” with a price target of $38.00.
Radian Group Inc. operates primarily in the mortgage and real estate services sector within the United States, functioning through its Mortgage Insurance and Homegenius segments. The Mortgage Insurance segment manages U.S. mortgage credit risk for lenders and investors, providing private mortgage insurance and other credit risk solutions.
