Barclays Downgrades Stock Rating of Radian Group
January 13, 2023
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Radian Group Stock Intrinsic Value – The Radian Group ($NYSE:RDN) is a financial services company based in Philadelphia, Pennsylvania. The company provides credit enhancement products such as mortgage insurance and reinsurance to the mortgage and real estate markets. They also provide risk management services and loans to small businesses. Recently, Barclays has downgraded the stock rating for Radian Group from “overweight” to “equal weight”. This is due to the fact that Radian Group’s stock price has dropped significantly in recent months. Barclays stated that the current market environment presents a challenging situation for Radian Group, and they believe that the stock price is unlikely to increase in the near future. Barclays also noted that while Radian Group’s mortgage insurance and reinsurance business have been strong, their other businesses have been struggling due to the current market conditions.
They also commented that Radian Group’s credit profile has weakened due to the increasing delinquency rate in their mortgage portfolio. Given the current market environment, Barclays believes that investors should remain cautious with their investments in Radian Group. They are recommending that investors wait for a more favorable market environment before investing in Radian Group. Furthermore, they believe that investors should be cautious with their exposure to Radian Group’s debt, given the weakening credit profile of the company. Overall, Barclays’ downgrade of Radian Group’s stock rating is indicative of the current market conditions and its effect on the company. Investors should remain cautious when considering an investment in Radian Group given the current market environment.
Price History
At the time of writing, media coverage mostly remains neutral while the stock opened at $18.8 and closed at $18.8, up by 0.6% from the prior closing price of $18.7. The stock has been volatile and has seen some positive movement in recent weeks.
However, it is still below the pre-pandemic levels. Despite the downgrade, analysts are still positive on Radian Group’s long-term prospects. The company has a strong track record in terms of financial performance and has a diversified portfolio of products and services. This should help it weather any potential downturns and put it in a good position for growth in the future.
Additionally, it has strong brand recognition and a loyal customer base. Investors should keep an eye on how Radian Group performs over the coming weeks and months. The stock could experience further volatility as the markets adjust to the downgrade from Barclays. In any case, investors should research the company thoroughly before investing to make sure it’s the right choice for them. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Radian Group. More…
| Total Revenues | Net Income | Net Margin |
| 1.21k | 774.05 | 63.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Radian Group. More…
| Operations | Investing | Financing |
| 435.96 | 80.68 | -617.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Radian Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.99k | 3.25k | 23.8 |
Key Ratios Snapshot
Some of the financial key ratios for Radian Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -6.2% | – | 88.9% |
| FCF Margin | ROE | ROA |
| 34.6% | 17.6% | 9.7% |
VI Analysis – Radian Group Stock Intrinsic Value
RADIAN GROUP is an attractive investment option to consider due to its strong fundamentals. This is highlighted by the VI Line analysis, which shows that the company has an intrinsic value of $31.2 per share. This is significantly higher than the current stock price of $18.8, making it a particularly attractive option for investors looking for an undervalued stock. The company’s strong fundamentals are due to a number of factors. Its assets are well managed and its liabilities are in check, both of which help to reduce risk and increase the potential for growth. Additionally, it has a strong track record of generating profits and its cash flow is consistently positive. The company also has a robust management team that is adept at identifying new opportunities and responding to changing market conditions. This has enabled the company to remain competitive and grow even in challenging market conditions. Overall, RADIAN GROUP is an attractive investment option due to its strong fundamentals and potential for long-term growth. Its current undervalued stock price makes it particularly appealing, as investors are able to purchase shares at a discount while still benefiting from the company’s long-term potential. More…
VI Peers
Radian Group Inc’s primary business is providing private mortgage insurance, reinsurance and mortgage financing solutions in the United States through its principal subsidiaries, Radian Guaranty Inc and Radian Asset Assurance Inc. Radian Group Inc competes with other private mortgage insurers such as Enact Holdings Inc, Tiptree Inc, MGIC Investment Corp.
– Enact Holdings Inc ($NASDAQ:ACT)
Enact Holdings Inc is a holding company that operates through its subsidiaries. The company has a market cap of 3.96B as of 2022 and a ROE of 17.23%. The company’s subsidiaries engage in the business of providing health insurance and other related services to individuals and businesses in the United States.
– Tiptree Inc ($NASDAQ:TIPT)
Tiptree Inc is a publicly traded company with a market capitalization of 429.89M as of 2022. The company has a return on equity of 9.05%. Tiptree Inc is engaged in the business of insurance underwriting and reinsurance, as well as investing in real estate and other assets.
– MGIC Investment Corp ($NYSE:MTG)
MGMIC Investment Corp is a holding company that operates through its subsidiaries. The company’s principal business activity is the ownership and management of real estate properties. Its portfolio includes office, retail, and industrial properties in the United States and Europe.
Summary
Investing in Radian Group can be a risky proposition. The company has recently had its stock rating downgraded by Barclays, suggesting that the stock may be overvalued.
However, the media coverage of Radian Group at the time of writing was mostly neutral, and investors should do their own research before investing in the company. Radian Group is a leading provider of financial services and mortgage insurance products, with operations in the United States, the United Kingdom, Ireland, Canada, and Australia. The company has a strong track record and serves more than two million customers annually. Its products are designed to protect lenders from losses due to default on mortgage loans. Despite the recent downgrade, Radian Group remains a viable option for investors looking for exposure to the financial and mortgage insurance sectors.
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