Richard G. Thornberry, the Chief Executive Officer of Radian Group Inc . (NYSE:RDN), recently sold 20,000 shares of the company's common stock. The shares were sold at an average price of $34.9578 each, amounting to a total transaction value of $699,156. This sale was conducted under a pre-arranged 10b5-1 trading plan, which Thornberry entered into in August 2024.
Following this transaction, Thornberry retains ownership of 909,452 shares in Radian Group. This figure includes 875 shares acquired through the company's Employee Stock Purchase Plan as of June 30, 2024.
In other recent news, Radian Group reported strong results for the third quarter of 2024, with revenues reaching $334 million and net income of $152 million. The company also noted an 18% year-over-year increase in book value per share, now at $31.37, and expansion in primary mortgage insurance in force to $275 billion. Radian Group's outlook for 2024 anticipates the mortgage insurance market to remain stable around $300 billion, with a projected 10% increase in 2025. The company also plans to reduce operating expenses significantly for the full year 2025, with an estimated run rate reduction of $20 million to $25 million.
Despite a slight increase in default loans, Radian Group reported strong cure rates, with 90% of defaults curing within four quarters. The company generated $40 million in total revenues from its "all other" business lines and executed its first private label prime jumbo securitization, issuing $349 million in certificates. These are among the recent developments for Radian Group, which continues its strategic focus on operational efficiency and capitalizing on market opportunities.
InvestingPro Insights
While Richard G. Thornberry's recent stock sale might raise eyebrows, a closer look at Radian Group Inc. (NYSE:RDN) reveals a company with solid financial footing. According to InvestingPro data, Radian boasts a market capitalization of $5.31 billion and a price-to-earnings ratio of 9.12, suggesting the stock may be undervalued relative to its earnings.
Radian's financial health is further underscored by two key InvestingPro Tips. First, the company has maintained dividend payments for an impressive 32 consecutive years, demonstrating a commitment to shareholder returns. Additionally, Radian's liquid assets exceed its short-term obligations, indicating strong financial stability.
The company's revenue growth of 6.23% over the last twelve months and a robust gross profit margin of 94.95% paint a picture of a business that continues to expand while maintaining profitability. This performance aligns with another InvestingPro Tip, which notes that analysts predict the company will remain profitable this year.
For investors seeking more comprehensive insights, InvestingPro offers 6 additional tips for Radian Group, providing a deeper understanding of the company's financial position and future prospects.
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