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Radian (RDN)

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)
Former names
CMAC INVESTMENT CORP
SEC CIK
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

Analyst ratings and price targets

Last 3 months
Current price
Average target
$26.50
Low target
$26.00
High target
$27.00
Keefe, Bruyette & Woods
Downgraded
Market Perform
$27.00
18 Jul 22
BTIG
Maintains
Buy
$26.00
8 Jul 22

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

5 Aug 22
9 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
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

Beta Read what these cash burn values mean

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
95.7% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 283 253 +11.9%
Opened positions 58 50 +16.0%
Closed positions 28 45 -37.8%
Increased positions 88 68 +29.4%
Reduced positions 96 87 +10.3%
13F shares Current Prev Q Change
Total value 3.67B 3.51B +4.5%
Total shares 165.39M 166.35M -0.6%
Total puts 193.7K 103K +88.1%
Total calls 216.1K 95.6K +126.0%
Total put/call ratio 0.9 1.1 -16.8%
Largest owners Shares Value Change
Vanguard 18.36M $407.71M +8.5%
FMR 16.15M $358.58M +0.1%
BLK Blackrock 14.62M $324.73M -1.1%
LSV Asset Management 7.06M $156.89M +7.5%
Dimensional Fund Advisors 5.8M $128.84M +3.1%
TROW T. Rowe Price 5.66M $125.75M +0.0%
STT State Street 5.35M $118.84M -4.3%
Thrivent Financial For Lutherans 4.22M $93.7M +8.5%
Charles Schwab Investment Management 3.99M $88.71M +61.7%
Geode Capital Management 3.25M $72.08M -1.4%
Largest transactions Shares Bought/sold Change
Healthcare Of Ontario Pension Plan Trust Fund 1.13M -3.28M -74.3%
Donald Smith & Co. 3.05M +3.05M NEW
Senvest Management 993.31K -2.99M -75.1%
Norges Bank 0 -2.96M EXIT
Capital International Investors 291.55K -2.49M -89.5%
Assenagon Asset Management 2.14M +2.14M NEW
Millennium Management 1.8M +1.63M +951.2%
Charles Schwab Investment Management 3.99M +1.52M +61.7%
Vanguard 18.36M +1.44M +8.5%
Canada Pension Plan Investment Board 235.01K -1.38M -85.5%

Financial report summary

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Competition
Arch CapitalNMI
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

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. freshman Avg
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