We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Strength Seen in Radian (RDN): Can Its 7.2% Jump Turn into More Strength?
Read MoreHide Full Article
Radian (RDN - Free Report) shares rallied 7.2% in the last trading session to close at $37.22. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 'no gain, no loss' position over the past four weeks.
The surge likely was fueled by Radian’s decision to divest Mortgage Conduit, Title and Real Estate Services businesses and acquire Inigo Limited, a highly profitable Lloyd’s specialty insurer. The acquisition marks Radian’s transformation to a global, diversified multi-line specialty insurer from a leading U.S. mortgage insurer.
Radian expects the buyout, when materializes, will double its total annual revenue, providing flexibility to deploy capital across multiple insurance lines through various business cycles. Inigo is among the fastest growing Lloyd’s syndicates in the market while achieving attractive profitability. Thus, this transaction will aid Radian expand into the large and attractive Lloyd’s global specialty market.
This mortgage insurer is expected to post quarterly earnings of $0.95 per share in its upcoming report, which represents a year-over-year change of -7.8%. Revenues are expected to be $316.6 million, down 0.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Radian, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RDN going forward to see if this recent jump can turn into more strength down the road.
Radian is a member of the Zacks Insurance - Multi line industry. One other stock in the same industry, Assurant (AIZ - Free Report) , finished the last trading session 0.2% lower at $209.07. AIZ has returned -2.7% over the past month.
Assurant's consensus EPS estimate for the upcoming report has changed +0.4% over the past month to $4.07. Compared to the company's year-ago EPS, this represents a change of +35.7%. Assurant currently boasts a Zacks Rank of #1 (Strong Buy).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Strength Seen in Radian (RDN): Can Its 7.2% Jump Turn into More Strength?
Radian (RDN - Free Report) shares rallied 7.2% in the last trading session to close at $37.22. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 'no gain, no loss' position over the past four weeks.
The surge likely was fueled by Radian’s decision to divest Mortgage Conduit, Title and Real Estate Services businesses and acquire Inigo Limited, a highly profitable Lloyd’s specialty insurer. The acquisition marks Radian’s transformation to a global, diversified multi-line specialty insurer from a leading U.S. mortgage insurer.
Radian expects the buyout, when materializes, will double its total annual revenue, providing flexibility to deploy capital across multiple insurance lines through various business cycles. Inigo is among the fastest growing Lloyd’s syndicates in the market while achieving attractive profitability. Thus, this transaction will aid Radian expand into the large and attractive Lloyd’s global specialty market.
This mortgage insurer is expected to post quarterly earnings of $0.95 per share in its upcoming report, which represents a year-over-year change of -7.8%. Revenues are expected to be $316.6 million, down 0.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Radian, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RDN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Radian is a member of the Zacks Insurance - Multi line industry. One other stock in the same industry, Assurant (AIZ - Free Report) , finished the last trading session 0.2% lower at $209.07. AIZ has returned -2.7% over the past month.
Assurant's consensus EPS estimate for the upcoming report has changed +0.4% over the past month to $4.07. Compared to the company's year-ago EPS, this represents a change of +35.7%. Assurant currently boasts a Zacks Rank of #1 (Strong Buy).