Street Calls of the Week
Investing.com - Keefe, Bruyette & Woods (KBW) has reiterated its Market Perform rating and $38.00 price target on Radian Group (NYSE:RDN).
KBW maintained its position on the mortgage insurance provider following meetings between investors and Radian’s President and CFO Sumita Pandit, along with EVP of Capital Markets Dan Kobell.
The primary focus of these discussions centered on Radian’s recently announced Inigo acquisition and the company’s plans to divest other businesses.
KBW noted that investor sentiment regarding the Inigo acquisition was "very positive," with the firm highlighting several potential benefits from the proposed transaction.
According to KBW, these benefits include near-term earnings accretion, a potential revaluation of Radian’s multiple, and likely improvements in capital efficiency for the company.
In other recent news, Radian Group Inc. reported robust financial results for the second quarter of 2025, with earnings per share reaching $1.01, surpassing the forecasted $0.98. The company also reported revenue of $318 million, slightly above the anticipated $316 million. Additionally, Radian Group has announced a definitive agreement to acquire Lloyd’s specialty insurer Inigo Limited for $1.7 billion in a primarily all-cash deal. This acquisition is expected to close in the first quarter of 2026, pending regulatory approvals. UBS has raised its price target on Radian Group to $43.00 from $38.00, maintaining a Neutral rating, citing expected accretion from the Inigo acquisition. In other developments, Radian Group increased its borrowing limit on a JPMorgan repurchase agreement to $500 million, extending the agreement’s termination date to August 27, 2026. Furthermore, the company announced a quarterly dividend of $0.255 per share, payable on September 9, 2025, to stockholders of record as of August 25, 2025. These recent developments highlight Radian Group’s strategic shifts and financial maneuvers.
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