Radian Group Inc. is ensuring the American dream of homeownership responsibly and sustainably through products and services that include industry-leading mortgage insurance and a comprehensive suite of mortgage, risk, title, valuation, asset management and other real estate services. The Company is powered by technology, informed by data and driven to deliver new and better ways to transact and manage risk.

Company profile
Ticker
RDN
Exchange
Website
CEO
Richard Thornberry
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
AMBAC Financial • Assured Guaranty • Old Republic International • MBIA • MGIC Investment • Essent • NMI • Syncora ...
Former names
CMAC INVESTMENT CORP
SEC CIK
Corporate docs
Subsidiaries
Benevida Settlement Services LLC • Enhance Financial Services Group Inc. • homegenius Inc. • Homegenius Real Estate of Florida LLC • Radian Escrow Services LLC • Radian Guaranty Inc. • Radian Insurance Inc. • Radian Investment Group Inc. • Radian Lender Services LLC • Radian MI Services Inc. ...
IRS number
232691170
RDN stock data
Press releases
Radian Announces Second Quarter 2022 Financial Results
1 Aug 22
U.S. Home Prices End First Half of Year on Strong Note, homegenius Home Price Index Reveals
29 Jul 22
homegenius Announces Alliance with RE/MAX, LLC as an Approved Supplier
29 Jul 22
Radian to Webcast Second Quarter Conference Call
14 Jul 22
Radian Group Launches Radian Mortgage Capital to Expand Market Opportunity and Offer Alternative Source of Funding to Lenders
13 Jul 22
Analyst ratings and price targets
Current price
Average target
$26.50
Low target
$26.00
High target
$27.00
Keefe, Bruyette & Woods
Downgraded
$27.00
BTIG
Maintains
$26.00
Investment data
Securities sold
Number of investors
Calendar
5 Aug 22
9 Aug 22
31 Dec 22
Financial summary
Quarter (USD) | Jun 22 | Mar 22 | Dec 21 | Sep 21 | |
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Diluted EPS |
Annual (USD) | Dec 21 | Dec 20 | Dec 19 | Dec 18 | |
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Cost of revenue | |||||
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Change in cash | |||||
Diluted EPS |
Cash burn rate (est.) | Burn method: Change in cash | Burn method: Operating income | Burn method: FCF (opex + capex) | Last Q | Avg 4Q | Last Q | Avg 4Q | Last Q | Avg 4Q |
---|---|---|---|---|---|---|
Cash on hand (at last report) | 135.82M | 135.82M | 135.82M | 135.82M | 135.82M | 135.82M |
Cash burn (monthly) | (no burn) | 173.67K | (no burn) | (no burn) | (no burn) | (no burn) |
Cash used (since last report) | n/a | 232.31K | n/a | n/a | n/a | n/a |
Cash remaining | n/a | 135.59M | n/a | n/a | n/a | n/a |
Runway (months of cash) | n/a | 780.8 | n/a | n/a | n/a | n/a |
Recent insider trades
Date | Owner | Security | Transaction | Code | Indirect | 10b5-1 | $Price | #Shares | $Value | #Remaining |
---|---|---|---|---|---|---|---|---|---|---|
6 Jun 22 | Hoffman Edward J | Common Stock | Sell | Dispose S | No | Yes | 21.33 | 10,000 | 213.3K | 128,534 |
3 Jun 22 | Culang Howard Bernard | Dividend Equivalent Rights Common Stock | Grant | Acquire A | No | No | 0 | 590.754 | 0 | 5,264.755 |
17 May 22 | Mumford Lisa | Common Stock | Sell | Dispose S | No | Yes | 21.6 | 2,393 | 51.69K | 12,246 |
15 May 22 | Mary Dickerson | Common Stock | Payment of exercise | Dispose F | No | No | 21.19 | 668 | 14.15K | 10,622 |
15 May 22 | Mary Dickerson | Common Stock | Option exercise | Acquire M | No | No | 0 | 1,536 | 0 | 11,290 |
15 May 22 | Mary Dickerson | RSU Common Stock | Option exercise | Dispose M | No | No | 0 | 1,536 | 0 | 3,074 |
15 May 22 | Conner Brad L. | Common Stock | Payment of exercise | Dispose F | No | No | 21.19 | 4 | 84.76 | 15,944 |
15 May 22 | Conner Brad L. | Common Stock | Option exercise | Acquire M | No | No | 0 | 5,986 | 0 | 15,948 |
15 May 22 | Conner Brad L. | RSU Common Stock | Option exercise | Dispose M | No | No | 0 | 5,986 | 0 | 0 |
Institutional ownership, Q1 2022
95.7% owned by funds/institutions
13F holders | Current |
---|---|
Total holders | 283 |
Opened positions | 58 |
Closed positions | 28 |
Increased positions | 88 |
Reduced positions | 96 |
13F shares | Current |
---|---|
Total value | 3.67B |
Total shares | 165.39M |
Total puts | 193.7K |
Total calls | 216.1K |
Total put/call ratio | 0.9 |
Largest owners | Shares | Value |
---|---|---|
Vanguard | 18.36M | $407.71M |
FMR | 16.15M | $358.58M |
BLK Blackrock | 14.62M | $324.73M |
LSV Asset Management | 7.06M | $156.89M |
Dimensional Fund Advisors | 5.8M | $128.84M |
TROW T. Rowe Price | 5.66M | $125.75M |
STT State Street | 5.35M | $118.84M |
Thrivent Financial For Lutherans | 4.22M | $93.7M |
Charles Schwab Investment Management | 3.99M | $88.71M |
Geode Capital Management | 3.25M | $72.08M |
Financial report summary
?Risks
- The COVID-19 pandemic adversely impacted us and, in the future, could again adversely affect our business, results of operations or financial condition.
- Radian Guaranty may fail to maintain its eligibility status with the GSEs, and the additional capital required to support Radian Guaranty’s eligibility could reduce our available liquidity.
- Our insurance subsidiaries are subject to comprehensive state insurance regulations and other requirements, which we may fail to satisfy.
- Changes in the charters, business practices or role of the GSEs in the U.S. housing market generally, could significantly impact our businesses.
- Legislation and administrative and regulatory changes and interpretations could impact our businesses.
- Our success depends on our ability to assess and manage our underwriting risks; the premiums we charge may not be adequate to compensate us for our liability for losses and the amount of capital we are required to hold against our insured risks. We expect to incur losses for future defaults beyond what we have reserved for in our financial statements.
- If the estimates we use in establishing loss reserves are incorrect, we may be required to take unexpected charges to income, which could adversely affect our results of operations.
- Our Loss Mitigation Activity is not expected to mitigate mortgage insurance losses to the same extent as in prior years; Loss Mitigation Activity could continue to negatively impact our customer relationships.
- Reinsurance may not be available, affordable or adequate to protect us against losses.
- An extension in the period of time that a loan remains in our defaulted loan inventory may increase the severity of claims that we ultimately are required to pay.
- If the length of time that our mortgage insurance policies remain in force declines, it could result in a decrease in our future revenues.
- Our delegated underwriting program may subject our mortgage insurance business to unanticipated claims.
- Our mortgage insurance business faces intense competition.
- Our NIW and franchise value could decline if we lose business from significant customers.
- The current financial strength ratings assigned to our mortgage insurance subsidiaries could weaken our competitive position and potential downgrades by rating agencies to these ratings and the ratings assigned to Radian Group could adversely affect the Company.
- Our business depends, in part, on effective and reliable loan servicing.
- We face risks associated with our contract underwriting business.
- A decrease in the volume of mortgage originations could result in fewer opportunities for us to write new mortgage insurance business and conduct our homegenius business.
- We are exposed to risks associated with our homegenius business that could negatively affect our results of operations and financial condition.
- We rely upon proprietary technology and information, and if we are unable to protect our intellectual property rights, it could have a material adverse effect on us.
- The credit performance of our mortgage insurance portfolio is impacted by macroeconomic conditions and specific events that affect the ability of borrowers to pay their mortgages.
- Our success depends, in part, on our ability to manage risks in our investment portfolio.
- Climate change and extreme weather events could adversely affect our businesses, results of operations and financial condition.
- Our reported earnings, stockholders’ equity and book value per share are subject to fluctuations based on changes in our investments that require us to adjust their fair market value.
- The discontinuance of LIBOR may adversely affect us.
- Radian Group’s sources of liquidity may be insufficient to fund its obligations.
- Our revolving credit facility contains restrictive covenants that could limit our operating flexibility. A default under our credit facility could trigger an event of default under the terms of our senior notes. We may not have access to funding under our credit facility when we require it.
- Our information technology systems may fail or become outmoded, be temporarily interrupted or otherwise cause us to be unable to meet our customers’ demands.
- We could incur significant liability or reputational harm if the security of our information technology systems is breached, including as result of a cyberattack, or we otherwise fail to protect confidential information, including personally identifiable information that we maintain.
- We may not continue to pay dividends at the same rate we are currently paying them, or at all, and any decrease in or suspension of payment of a dividend could cause our stock price to decline.
- We are subject to litigation and regulatory proceedings.
- We rely on our management team and our business could be harmed if we are unable to retain qualified personnel or successfully develop and/or recruit their replacements.
- Investments to grow our existing businesses, pursue new lines of business or new products and services within existing lines of business subject us to additional risks and uncertainties.
Management Discussion
- Adjusted Pretax Operating Income. The increase in our Mortgage segment’s adjusted pretax operating income for 2021, compared to 2020, primarily reflects a decrease in provision for losses. Partially offsetting this item is: (i) a decrease in net premiums earned; (ii) an increase in other operating expenses and (iii) an increase in interest expense.
- Net Premiums Written and Earned. Net premiums written for 2021 decreased compared to 2020. This decrease primarily reflects lower direct premium rates on our IIF portfolio compared to 2020, as well as a lower proportion of Single Premium Policies, partially offset by improvement in accrued profit commissions in 2021. For 2020, higher recorded ceded
- losses resulted in elevated ceded premiums due to a reduction in accrued profit commissions, which lowered net premiums written in that period.
Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. freshman Avg
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New words:
affirmative, arrangement, bidding, clarify, concentrated, conduit, entity, forma, Goldman, incurrence, industrywide, inflation, label, Liberty, Parent, pervasive, proactively, proprietary, recession, scorecard, sharply, signaled, slower, softening, sponsor, uncommitted, vi, vintage
Removed:
appraisal, Curtailment, denied, disruption, experience, fixed, fraud, fulfillment, inclusive, large, lien, Mitigation, negligence, perfect, poor, rescinded, servicer, underwriter, withdrawal, wound
Financial reports
Current reports
8-K
Results of Operations and Financial Condition
2 Aug 22
8-K
Entry into a Material Definitive Agreement
18 Jul 22
8-K
Departure of Directors or Certain Officers
15 May 22
8-K
Submission of Matters to a Vote of Security Holders
13 May 22
8-K
Results of Operations and Financial Condition
4 May 22
8-K
Results of Operations and Financial Condition
23 Feb 22
8-K
Departure of Directors or Certain Officers
22 Dec 21
8-K
Entry into a Material Definitive Agreement
8 Dec 21
8-K
Departure of Directors or Certain Officers
3 Dec 21
8-K
Results of Operations and Financial Condition
3 Nov 21
Registration and prospectus
S-8
Registration of securities for employees
12 May 21
424B5
Prospectus supplement for primary offering
13 May 20
FWP
Free writing prospectus
12 May 20
424B5
Prospectus supplement for primary offering
12 May 20
S-3ASR
Automatic shelf registration
28 Feb 20
424B5
Prospectus supplement for primary offering
14 Jun 19
FWP
Free writing prospectus
13 Jun 19
424B5
Prospectus supplement for primary offering
13 Jun 19
25-NSE
Exchange delisting
21 Mar 19
8-A12B/A
Registration of securities on exchange (amended)
19 Mar 19
Other
UPLOAD
Letter from SEC
20 Jan 14
CORRESP
Correspondence with SEC
22 Dec 13
CORRESP
Correspondence with SEC
26 Nov 13
UPLOAD
Letter from SEC
21 Nov 13
EFFECT
Notice of effectiveness
27 Jan 13
UPLOAD
Letter from SEC
13 Nov 12
CORRESP
Correspondence with SEC
31 Oct 12
UPLOAD
Letter from SEC
22 Oct 12
CORRESP
Correspondence with SEC
9 Oct 12
UPLOAD
Letter from SEC
27 Sep 12
Ownership
4
RADIAN / Edward J Hoffman ownership change
7 Jun 22
4
RADIAN / HOWARD BERNARD CULANG ownership change
7 Jun 22
4
RADIAN / Lisa Mumford ownership change
25 May 22
4
RADIAN / Brian D Montgomery ownership change
17 May 22
4
RADIAN / Noel Joseph Spiegel ownership change
17 May 22
4
RADIAN / DEBRA ANN HESS ownership change
17 May 22
4
RADIAN / Lisa Mumford ownership change
17 May 22
4
RADIAN / Gregory Serio ownership change
17 May 22
4
RADIAN / HOWARD BERNARD CULANG ownership change
17 May 22
4
RADIAN / Brad L. Conner ownership change
17 May 22
Transcripts
2022 Q2
Earnings call transcript
2 Aug 22
2022 Q1
Earnings call transcript
4 May 22
2021 Q4
Earnings call transcript
23 Feb 22
2021 Q3
Earnings call transcript
3 Nov 21
2021 Q2
Earnings call transcript
4 Aug 21
2021 Q1
Earnings call transcript
5 May 21
2020 Q4
Earnings call transcript
25 Feb 21
2020 Q3
Earnings call transcript
7 Nov 20
2020 Q2
Earnings call transcript
10 Aug 20
2020 Q1
Earnings call transcript
8 May 20
Reddit threads
Daily Discussion Thread - August 1st, 2022
1 Aug 22
Daily Discussion Thread - July 29th, 2022
29 Jul 22
Daily Discussion Thread - May 20th, 2022
20 May 22
Daily Discussion Thread - May 19th, 2022
19 May 22
Daily Discussion Thread - May 18th, 2022
18 May 22
Daily Discussion Thread - May 17th, 2022
17 May 22
Daily Discussion Thread - May 3rd, 2022
3 May 22
Daily Discussion Thread - May 2nd, 2022
2 May 22
Daily Discussion Thread - February 22nd, 2022
22 Feb 22
Daily Discussion Thread - February 21st, 2022
21 Feb 22