Breaking News
0

Radian Group (RDN) Okays Share Buyback Program Worth $200M

By Zacks Investment ResearchStock MarketsAug 16, 2019 08:41AM ET
www.investing.com/analysis/radian-group-rdn-okays-share-buyback-program-worth-200m-200455784
Radian Group (RDN) Okays Share Buyback Program Worth $200M
By Zacks Investment Research   |  Aug 16, 2019 08:41AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The board of directors of Radian Group Inc. (NYSE:RDN) recently authorized a share buyback program to return more value to investors. The latest authorization will allow the company to spend up to $200 million to repurchase its common stock.

The company’s previous share repurchase program of $250 million (raised by $150 million on Mar 29, 2019) has been fully utilized and the same expired on Jul 23, 2019. The new buyback authorization will expire on Jul 31, 2020, and is effective immediately.

In the first half of 2019, the company bought back about 9 million shares for $197.6 million and another 2.2 million shares for $52.5 million in July. Radian Group bought back about 11.3 million shares, or 5.3% of the shares outstanding at the beginning of the program.

The Zacks Rank #2 (Buy) insurer remains committed toward boosting shareholder value through such share repurchases and dividend payouts. A solid financial position, backed by strong core operations and favorable operating environment, enables the company to generate enough capital. Cash flow from operations improved 12.4% in the first half of 2019. The company has a sturdy track of delivering positive surprise in the last nine quarters.

Hence, we remain optimistic about Radian Group’s efforts in further improving its capital as well as liquidity position that will not only allow the company to return more value to investors but also accelerate the company’s near-term growth.

Moreover, Radian Group remains focused on its moves toward efficient and prudent capital deployment. This balanced approach supports the company’s diversified and integrated businesses, thus meeting its client needs and creating a long-term shareholder value.

Share repurchases benefit the company’s earnings per share, book value as well as its shareholder equity by reducing shares outstanding.

Concurrently, the board of directors of the insurer has approved 0.25 cents per share, payable Sep 6, 2019, to shareholders of record as of Aug 26, 2019. The company’s current dividend yield is 0.05%. For the last decade, this insurer has been consistently paying dividends and buying back shares. Such steadfast endeavors spread a bullish sentiment around the stock, making it an attractive pick for yield-seeking investors.

Shares of Radian Group have rallied 36.6%, year to date, outperforming the industry’s increase of 3.9%. We expect improving mortgage insurance in force, declining claim payments and a robust capital position to further drive the company’s shares in the near run.





Other Stocks to Consider

Investors interested in other top-ranked stocks from the insurance industry can also consider James River Group Holdings, Ltd. (NASDAQ:JRVR) , Assurant, Inc. (NYSE:AIZ) and Cigna Corporation (NYSE:CI) .

James River Group provides specialty insurance and reinsurance services in the United States. The company delivered a positive surprise of 3.13% in the last reported quarter. The stock sports a Zacks Rank #1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Assurant provides risk management solutions for housing and lifestyle markets in North America, Latin America, Europe, and the Asia Pacific. The company delivered a 9.86% positive surprise in the last reported quarter. The stock carries a Zacks Rank #2, at present.

Cigna provides insurance and related products and services in the United States and internationally. The company delivered a positive surprise of 15.28% in the last reported quarter. The stock currently carries a Zacks Rank #2.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>



Radian Group Inc. (RDN): Free Stock Analysis Report

Cigna Corporation (CI): Free Stock Analysis Report

Assurant, Inc. (AIZ): Free Stock Analysis Report

James River Group Holdings, Ltd. (JRVR): Free Stock Analysis Report

Original post
Radian Group (RDN) Okays Share Buyback Program Worth $200M
 
Radian Group (RDN) Okays Share Buyback Program Worth $200M

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email