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RDN Radian

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
IRS number
232691170

RDN stock data

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Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

7 May 21
24 Jun 21
31 Dec 21
Quarter (USD)
Mar 21 Dec 20 Sep 20 Jun 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from Radian earnings reports.

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
4 Jun 21 Culang Howard Bernard Dividend Equivalent Rights Common Stock Grant Aquire A No No 0 370.243 0 3,387.125
4 Jun 21 Wender Herbert Dividend Equivalent Rights Common Stock Grant Aquire A No No 0 362.297 0 3,277.024
25 May 21 Mary Dickerson Common Stock Buy Aquire P No No 22.9105 8,975 205.62K 8,975
20 May 21 Mumford Lisa Common Stock Sell Dispose S No No 22.435 4,000 89.74K 8,657

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

95.0% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 230 250 -8.0%
Opened positions 22 27 -18.5%
Closed positions 42 42
Increased positions 68 88 -22.7%
Reduced positions 94 94
13F shares
Current Prev Q Change
Total value 4.23B 3.88B +8.9%
Total shares 181.76M 191.58M -5.1%
Total puts 210K 438.7K -52.1%
Total calls 519.6K 489.3K +6.2%
Total put/call ratio 0.4 0.9 -54.9%
Largest owners
Shares Value Change
Vanguard 17.62M $409.67M +2.6%
BLK Blackrock 17.28M $401.66M +6.4%
FMR 17.21M $400.24M -0.0%
Putnam Investments 9.52M $221.31M +4.9%
LSV Asset Management 7.18M $167.05M -5.6%
STT State Street 5.92M $137.66M +0.1%
TROW T. Rowe Price 5.63M $130.81M -0.0%
GS Goldman Sachs 4.12M $95.83M -55.6%
Healthcare Of Ontario Pension Plan Trust Fund 4.01M $93.21M +43.0%
Dimensional Fund Advisors 3.62M $84.17M +25.8%
Largest transactions
Shares Bought/sold Change
GS Goldman Sachs 4.12M -5.17M -55.6%
Norges Bank 0 -2.49M EXIT
Nuveen Asset Management 3.55M -1.66M -31.9%
NTRS Northern Trust 3.22M -1.36M -29.7%
Senvest Management 3M -1.26M -29.5%
Goldentree Asset Management 2.3M +1.25M +119.2%
Healthcare Of Ontario Pension Plan Trust Fund 4.01M +1.21M +43.0%
Public Sector Pension Investment Board 3.05M +1.15M +60.7%
Wellington Management 1.84M -1.14M -38.3%
BLK Blackrock 17.28M +1.04M +6.4%

Financial report summary

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Competition
Arch CapitalNMI
Risks
  • The COVID-19 pandemic has adversely impacted us, and its ultimate impact on our business and financial results will depend on future developments, which are highly uncertain and cannot be predicted, including the scope, severity and duration of the pandemic and actions taken by governmental authorities in response to the pandemic.
  • 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.
  • The length of time that our mortgage insurance policies remain in force could decline further and 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 Real Estate business.
  • We face risks associated with our Real Estate business.
  • 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.
  • Our reported earnings are subject to fluctuations based on changes in our trading securities, equity securities and short-term investments that require us to adjust their fair market value.
  • Uncertainty relating to the potential discontinuance of LIBOR after 2021 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 non-public personal 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.
  • We may make investments to grow our existing businesses, pursue new lines of business or new business initiatives, acquire other companies or engage in other strategic initiatives, each of which may result in additional risks and uncertainties.
Management Discussion
  • Adjusted Pretax Operating Income. The decrease in our Mortgage segment’s adjusted pretax operating income for 2020, compared to 2019, primarily reflects: (i) an increase in provision for losses and (ii) a decrease in net premiums earned. These items were partially offset by a decrease in other operating expenses. See “—Net Premiums Written and Earned” and “—Provision for Losses” below for more information about our net premiums earned and provision for losses, respectively.
  • Net Premiums Written and Earned. Net premiums written for 2020 decreased compared to 2019. The decrease reflects lower premium rates on our IIF portfolio compared to the same period in 2019, as well as a lower proportion of Single Premium Policies. In addition, net premiums written for 2020 reflect an increase in ceded premiums resulting from a reduction to accrued profit commissions, due to higher ceded losses primarily recorded in the second quarter of 2020.
  • Part II Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
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