RDN

Radian Group Inc.

Finance/Real Estate, Macro


Presented:10/09/2014
Price:$14.33
Cap:$2.74B
Current Price:$34.90
Cap:$5.25B

Presented

Date10/09/2014
Price$14.33
Market Cap$2.74B
Ent Value$3.98B
P/E Ratio3.85x
Book Value$10.98
Div Yield0.1%
Shares O/S0.00M
Ave Daily Vol3,360,000
Short Int22.65%

Current

Price$34.90
Market Cap$5.25B
Radian Group Inc., through its subsidiaries, operates as a credit enhancement company in the United States. The company operates in two segments, Mortgage Insurance and Financial Guaranty. The Mortgage Insurance segment provides credit-related insurance coverage, primarily through private mortgage insurance that protects mortgage lenders from all or a portion of default-related losses on residential mortgage loans made to home buyers, as well as facilitates the sale of these mortgage loans in the secondary mortgage market; and risk management services to mortgage lending institutions. It offers primary mortgage insurance coverage on residential first-liens. This segment serves mortgage bankers, mortgage brokers, commercial banks, savings institutions, credit unions, and community banks. The Financial Guaranty segment provides financial guaranty insurance on its portfolio of public finance and structured finance insured transactions. Radian Group Inc. was founded in 1977 and is headquartered in Philadelphia, Pennsylvania.

Publicly traded companies mentioned herein: Radian Group Inc (RDN), MGIC Investment Corp (MTG), Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FMCC), JPMorgan Chase & Co (JPM)

Highlights

Two of the newest long positions in the presenter’s portfolio are mortgage insurers Radian Group (RDN) and MGIC Investment Corp (MTG). Shares of both companies imploded during the financial crisis, and subsequently bottomed in 2009. Today, RDN and MTG trade at ~$14 and ~$7.60 respectively; the risk/ reward setup and entry point appear to be attractive.

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Idea Discussion

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