After Today’s Bearish Options Activity, Is Radian Group Inc’s Near-Term Analysis Positive?

 After Today's Bearish Options Activity, Is Radian Group Inc's Near Term Analysis Positive?

In today’s session Radian Group Inc (RDN) recorded an unusually high (7,000) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the November, 2016 put, expecting serious RDN decrease. With 7,000 contracts traded and 5294 open interest for the Nov, 16 contract, it seems this is a quite bearish bet. The option with symbol: RDN161118P00013000 closed last at: $0.35 or 12.5% down. About 201,464 shares traded hands. Radian Group Inc (NYSE:RDN) has risen 17.45% since March 15, 2016 and is uptrending. It has outperformed by 11.97% the S&P500.

Analysts await Radian Group Inc (NYSE:RDN) to report earnings on October, 25. They expect $0.38 earnings per share, up 22.58% or $0.07 from last year’s $0.31 per share. RDN’s profit will be $82.48 million for 9.34 P/E if the $0.38 EPS becomes a reality. After $0.38 actual earnings per share reported by Radian Group Inc for the previous quarter, Wall Street now forecasts 0.00% EPS growth.

Radian Group Inc (NYSE:RDN) Ratings Coverage

Out of 7 analysts covering Radian Group (NYSE:RDN), 4 rate it a “Buy”, 0 “Sell”, while 3 “Hold”. This means 57% are positive. $21 is the highest target while $14 is the lowest. The $17.06 average target is 20.23% above today’s ($14.19) stock price. Radian Group has been the topic of 19 analyst reports since August 31, 2015 according to StockzIntelligence Inc. The stock has “Buy” rating given by Compass Point on Thursday, April 28. The rating was maintained by FBR Capital with “Mkt Perform” on Monday, November 2. Compass Point maintained Radian Group Inc (NYSE:RDN) on Friday, January 29 with “Buy” rating. Wells Fargo initiated the stock with “Market Perform” rating in Friday, October 2 report. The rating was maintained by M Partners with “Buy” on Monday, August 31. The rating was downgraded by Macquarie Research to “Neutral” on Wednesday, January 20. The firm earned “Buy” rating on Monday, October 17 by Bank of America. The rating was maintained by FBR Capital with “Outperform” on Friday, July 29. The firm has “Neutral” rating given on Monday, May 2 by Credit Suisse. On Thursday, June 30 the stock rating was upgraded by FBR Capital to “Outperform”.

According to Zacks Investment Research, “Radian Group Inc. is the parent company of Radian Guaranty Inc. The company provides private mortgage insurance and risk management services to mortgage lenders nationwide; these services increase homeownership opportunities by helping people to buy homes with down payments of less than 20 percent. Private mortgage insurance protects lenders from default-related losses on residential first mortgages and facilitates the sale of low-down-payment mortgage loans in the secondary market. (PRESS RELEASE)”

Insitutional Activity: The institutional sentiment increased to 1.49 in 2016 Q2. Its up 0.49, from 1 in 2016Q1. The ratio is positive, as 22 funds sold all Radian Group Inc shares owned while 55 reduced positions. 31 funds bought stakes while 84 increased positions. They now own 195.94 million shares or 1.34% less from 198.59 million shares in 2016Q1.
The Illinois-based Prudential Public Ltd Liability has invested 0% in Radian Group Inc (NYSE:RDN). Balyasny Asset Mngmt Limited Liability Company accumulated 52,499 shares or 0% of the stock. Citadel Advsrs Limited Com has 0.02% invested in the company for 1.36 million shares. The New York-based Teewinot Capital Advisers Ltd has invested 1.73% in Radian Group Inc (NYSE:RDN). Credit Suisse Ag accumulated 361,010 shares or 0% of the stock. Endeavour Cap Advsrs accumulated 1.16% or 1.49M shares. Barclays Public Ltd Com holds 0% of its portfolio in Radian Group Inc (NYSE:RDN) for 10,076 shares. Cubist Systematic Strategies Ltd Liability has 0.04% invested in the company for 71,455 shares. Legal General Group Public Ltd Liability Corporation has invested 0% of its portfolio in Radian Group Inc (NYSE:RDN). Checchi Capital Advisers Ltd Llc has 0% invested in the company for 434 shares. Metropolitan Life Insur Ny, a New York-based fund reported 155,621 shares. Nomura last reported 0% of its portfolio in the stock. Nuveen Asset Mngmt Limited Company has 14,254 shares for 0% of their US portfolio. Ajo L P holds 0.01% of its portfolio in Radian Group Inc (NYSE:RDN) for 245,457 shares. Moreover, Landscape Cap Management has 0.01% invested in Radian Group Inc (NYSE:RDN) for 10,126 shares.

Insider Transactions: Since August 10, 2016, the stock had 1 insider purchase, and 0 sales for $205,970 net activity. $205,970 worth of Radian Group Inc (NYSE:RDN) shares were bought by Brummer Derek.

Radian Group Inc. is a holding company that provides mortgage insurance, and services and products to the real estate and mortgage finance industries. The company has a market cap of $3.08 billion. The Firm operates in two divisions: Mortgage Insurance and Services. It has a 10.96 P/E ratio. The Mortgage Insurance segment provides credit-related insurance coverage, principally through private mortgage insurance to mortgage lending institutions.

RDN Company Profile

Radian Group Inc., incorporated on December 6, 1991, is a holding firm that provides mortgage insurance, and services and products to the real estate and mortgage finance industries. The Firm operates in two business divisions: Mortgage Insurance and Services. The Company’s clients include mortgage bankers, mortgage brokers, commercial banks, savings institutions, credit unions and community banks.

More news for Radian Group Inc (NYSE:RDN) were recently published by: Businesswire.com, which released: “Radian to Webcast Third Quarter Conference Call on October 27, 2016” on October 17, 2016. Prnewswire.com‘s article titled: “Radian Named Preferred Mortgage Insurance Provider for Your Path Loan Program” and published on October 17, 2016 is yet another important article.

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