Radian Group, Inc.: Warming Up or Cooling Off?

By Motley Fool Staff
November 22, 2009 | Comments (1)

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Together, we are all trying to build our fortune by finding well-run companies at bargain-basement prices. But it takes work -- scouring company earnings reports, scrutinizing key data, and assessing the competition.

Because of that, we've created a screen based on the massive data aggregated from the more than 140,000 investors competing on our Motley Fool CAPS platform. Each quarter, we check in on select companies after they file a 10-Q and track community sentiment -- so you can see how your company is doing.

Here's the community sentiment on Radian Group, Inc. (NYSE: RDN) both this quarter and last (for comparison), as well as opinions on some related companies.

Metric Radian Group, Inc. (NYSE: RDN) First Financial Northwest (Nasdaq: FFNW) Flushing Financial Corp (Nasdaq: FFIC) TrustCo Bank Corp NY (Nasdaq: TRST)
This Quarter (11/13/2009):
Price: $5.45 $6.05 $10.39 $5.81
% of Members Rating Outperform 62% 70% 66% 62%
% of All-Star Members Rating Outperform 49% 25% 47% 54%
CAPS Rating (out of 5) 2 Stars 0 Stars 1 Stars 2 Stars
Last Quarter (8/15/2009):
Price: $7.45 $7.62 $12.70 $6.29
% of Members Rating Outperform 62% 67% 65% 58%
% of All-Star Members Rating Outperform 58% 67% 57% 57%
CAPS Rating (out of 5) 2 Stars 0 Stars 1 Stars 2 Stars

Source: Motley Fool CAPS. Dates given are the posting dates of Radian Group, Inc.'s most recent quarterly and/or annual reports to the SEC's website. Percentages are calculated from the number of members rating each company.

A change in the community's approval (signified by four- and five-star ratings) or disapproval (one- and two-star ratings) could indicate that further research is in order. To help make your research easier …

  • Share any thoughts you have about Radian Group, Inc. -- or any of the other companies mentioned -- in the comments box below.
  • Head over to the completely free CAPS service -- a one-stop research shop -- and read what your fellow investors are saying about your stocks.


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As this was built out of a screen, no individual person selected the stocks in this article, so there is no author to disclose an interest in them. Since this article was automatically generated by identifying the stocks loved both by the CAPS community and by buyers in today's market, it is possible that Motley Fool personnel (and even The Motley Fool itself, through our Million Dollar Portfolio, Hidden Gems, Motley Fool Pro, and Ready Made Millionaire services) have positions in these stocks. We thought you'd like to know that. Learn more about The Motley Fool's disclosure policy.

Comments from our Foolish Readers

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  • Report this Comment On November 24, 2009, at 5:49 PM, Insightful77 wrote:

    Let's review some other issues that Radian may have. In the Fall of 2000 they purchased Enhance Financial Services Group, Inc. which amoung its holdings was Enhance Re a major reinsurer to MBIA and AMBAC. AMBAC's CFO resigned today according to a announcement and AMBAC also has warned that they may be forced into bankruptcy. At the same time Radian purchased with Enhance a company now named Radian Asset Assurance. I found this quote at this link:http://www.radiangroupinc.com/pdf/S&P_RadianAssetInc_5-2... "Radian Asset is a New York State domiciled financial guaranty insurance

    company. Its immediate parent company is Enhance Financial Services

    Group Inc. and its ultimate parent is the Radian Group. The company had a

    successful year in 2003 in the U.S. public finance market, with gross par

    insured increasing by 34% to $2.9 billion. Public finance adjusted gross

    premiums written were up by 39% in 2003 to $89.0 million. The composition of

    Radian Asset's insured public finance book of business reflects its niche

    position in the market and resulting origination strategy. The health care

    sector, for example, comprises 17.7% of total exposure. The industry average

    is about 4.9%. However, Radian Asset's health care exposure is down from

    20.7% as of Dec. 31, 2001. Likewise, higher education insured debt is 9.4% of

    exposure compared to about 3.0% for the industry average. Expanding

    opportunities beyond health care and higher education is a goal for the

    company in 2004" It seems they have exposure to student loan losses in CLO and CDO exposure as a financial guarantor as well as their reinsurance exposures. This on top of their ever increasing exposure to a residential prime market downturn in their PMI will cause their short term prospects to dim.

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2/9/2010 4:03 PM
RDN $6.70 Down +0.00 +0.00%
Radian Group, Inc. CAPS Rating: **

Community: Investing Wiki

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