Traders Buy High Volume of Call Options on Radian Group (NYSE:RDN)

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Radian Group Inc. (NYSE:RDN) saw some unusual options trading activity on Monday. Stock investors bought 2,189 call options on the stock. This represents an increase of 1,052% compared to the typical daily volume of 190 call options.

NYSE RDN opened at $23.63 on Tuesday. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.06 and a current ratio of 1.06. The company has a market cap of $4.24 billion, a price-to-earnings ratio of 8.23, a PEG ratio of 1.49 and a beta of 1.43. The stock’s 50 day moving average price is $21.35. Radian Group has a 52 week low of $19.10 and a 52 week high of $25.31.

Radian Group (NYSE:RDN) last posted its quarterly earnings data on Tuesday, November 2nd. The insurance provider reported $0.67 EPS for the quarter, missing the consensus estimate of $0.71 by ($0.04). The firm had revenue of $285.89 million for the quarter, compared to the consensus estimate of $328.60 million. Radian Group had a return on equity of 12.62% and a net margin of 40.78%. During the same quarter last year, the firm earned $0.59 EPS. Analysts anticipate that Radian Group will post 2.83 EPS for the current year.

The company also recently disclosed a quarterly dividend, which was paid on Friday, December 3rd. Investors of record on Monday, November 22nd were paid a dividend of $0.14 per share. The ex-dividend date was Friday, November 19th. This represents a $0.56 annualized dividend and a dividend yield of 2.37%. Radian Group’s dividend payout ratio (DPR) is presently 19.51%.

Several equities research analysts have issued reports on RDN shares. Bank of America cut shares of Radian Group from a “buy” rating to an “underperform” rating and lowered their price objective for the company from $25.00 to $22.50 in a research report on Wednesday, November 17th. Credit Suisse Group upped their price target on shares of Radian Group from $22.50 to $25.00 and gave the stock a “neutral” rating in a research report on Monday, October 11th. Zacks Investment Research cut shares of Radian Group from a “buy” rating to a “hold” rating and set a $23.00 price target for the company. in a research report on Monday, November 15th. BTIG Research reaffirmed a “buy” rating and issued a $29.00 price target on shares of Radian Group in a research report on Friday, October 8th. Finally, B. Riley upped their price target on shares of Radian Group from $30.00 to $31.00 and gave the stock a “buy” rating in a research report on Wednesday, October 13th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and two have issued a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $27.42.

In related news, CEO Richard G. Thornberry acquired 20,000 shares of the stock in a transaction on Tuesday, November 23rd. The stock was bought at an average cost of $21.65 per share, with a total value of $433,000.00. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Brien Mcmahon sold 50,920 shares of the business’s stock in a transaction dated Wednesday, November 24th. The shares were sold at an average price of $21.64, for a total transaction of $1,101,908.80. The disclosure for this sale can be found here. Corporate insiders own 1.36% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of RDN. Van ECK Associates Corp increased its stake in Radian Group by 119.5% during the 2nd quarter. Van ECK Associates Corp now owns 2,224 shares of the insurance provider’s stock valued at $49,000 after purchasing an additional 1,211 shares in the last quarter. Dark Forest Capital Management LP acquired a new position in Radian Group during the 2nd quarter valued at approximately $60,000. Pinz Capital Management LP acquired a new position in Radian Group during the 2nd quarter valued at approximately $91,000. O Shaughnessy Asset Management LLC increased its stake in Radian Group by 13.4% during the 3rd quarter. O Shaughnessy Asset Management LLC now owns 6,805 shares of the insurance provider’s stock valued at $155,000 after purchasing an additional 806 shares in the last quarter. Finally, Convergence Investment Partners LLC increased its stake in Radian Group by 5.8% during the 3rd quarter. Convergence Investment Partners LLC now owns 8,524 shares of the insurance provider’s stock valued at $194,000 after purchasing an additional 465 shares in the last quarter. Hedge funds and other institutional investors own 96.66% of the company’s stock.

Radian Group Company Profile

Radian Group, Inc is a holding company, which engages in the provision of mortgage insurance, risk management products, and real estate services to financial institutions. It operates through the Mortgage and Real Estate segments. The Mortgage segment offers credit-related insurance coverage, as well as other credit risk management solutions to mortgage lending institutions and mortgage credit investors.

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