Radian Group Inc Is a Buy; Strong Momentum from Option Traders

 Radian Group Inc Is a Buy; Strong Momentum from Option Traders

In today’s session Radian Group Inc (RDN) registered an unusually high (210) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the December, 2016 call, expecting serious RDN increase. With 210 contracts traded and 20674 open interest for the Dec, 16 contract, it seems this is a quite bullish bet. The option with symbol: RDN161216C00015000 closed last at: $0.25 or 16.7% down. About 140,187 shares traded hands. Radian Group Inc (NYSE:RDN) has risen 17.24% since April 22, 2016 and is uptrending. It has outperformed by 11.83% the S&P500.

Analysts await Radian Group Inc (NYSE:RDN) to report earnings on January, 26. They expect $0.40 earnings per share, up 17.65% or $0.06 from last year’s $0.34 per share. RDN’s profit will be $86.20 million for 9.11 P/E if the $0.40 EPS becomes a reality. After $0.41 actual earnings per share reported by Radian Group Inc for the previous quarter, Wall Street now forecasts -2.44% negative 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 17.09% above today’s ($14.57) stock price. Radian Group has been the topic of 19 analyst reports since August 31, 2015 according to StockzIntelligence Inc. FBR Capital upgraded the shares of RDN in a report on Thursday, June 30 to “Outperform” rating. The firm has “Buy” rating given on Wednesday, October 28 by Compass Point. The stock of Radian Group Inc (NYSE:RDN) earned “Neutral” rating by Credit Suisse on Monday, May 2. Compass Point maintained Radian Group Inc (NYSE:RDN) rating on Thursday, April 28. Compass Point has “Buy” rating and $16.50 price target. The stock has “Neutral” rating given by Macquarie Research on Wednesday, January 20. Compass Point maintained Radian Group Inc (NYSE:RDN) on Friday, January 29 with “Buy” rating. As per Friday, July 29, the company rating was maintained by FBR Capital. Wells Fargo initiated Radian Group Inc (NYSE:RDN) on Friday, October 2 with “Market Perform” rating. M Partners maintained Radian Group Inc (NYSE:RDN) on Monday, August 31 with “Buy” rating. The firm has “Mkt Perform” rating given on Monday, November 2 by FBR Capital.

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 1.53 in Q2 2016. Its up 0.04, from 1.49 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.
Engineers Gate Manager L P last reported 0.08% of its portfolio in the stock. Goldman Sachs Inc has 0.02% invested in the company for 5.02 million shares. Saba Lp owns 10,000 shares or 0.01% of their US portfolio. Dynamic Capital Management Limited holds 0.05% of its portfolio in Radian Group Inc (NYSE:RDN) for 37,566 shares. Quantitative Systematic Strategies Limited last reported 0.28% of its portfolio in the stock. Checchi Cap Advisers accumulated 434 shares or 0% of the stock. Symphony Asset Ltd Liability Corp holds 0.14% of its portfolio in Radian Group Inc (NYSE:RDN) for 115,487 shares. The Pennsylvania-based Nationwide Fund Advsrs has invested 0.01% in Radian Group Inc (NYSE:RDN). First Advisors Limited Partnership, a Illinois-based fund reported 485,622 shares. Vanguard has invested 0.01% of its portfolio in Radian Group Inc (NYSE:RDN). Advsrs Asset Mngmt has 0% invested in the company for 24,967 shares. Emerald Advisers Pa reported 284,810 shares or 0.14% of all its holdings. Ameriprise Fincl accumulated 0.01% or 2.20M shares. The Massachusetts-based New Generation Ltd has invested 2.24% in Radian Group Inc (NYSE:RDN). Moreover, Arcadia Investment Corporation Mi has 0% invested in Radian Group Inc (NYSE:RDN) for 82 shares.

Insider Transactions: Since August 10, 2016, the stock had 1 insider buy, and 0 sales for $205,970 net activity. $205,970 worth of Radian Group Inc (NYSE:RDN) was 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 $3.14 billion. The Firm operates in two divisions: Mortgage Insurance and Services. It has a 10.55 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 recent Radian Group Inc (NYSE:RDN) news were published by: Reuters.com which released: “BRIEF-Radian Group Inc says providing certain terms for potential future r…” on November 18, 2016. Also Forbes.com published the news titled: “Ex-Dividend Reminder: AmerisourceBergen, Radian Group and Symantec” on November 15, 2016. Nasdaq.com‘s news article titled: “Radian Group Inc. (RDN) Ex-Dividend Date Scheduled for November 17, 2016” with publication date: November 16, 2016 was also an interesting one.

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