Why Radian (RDN) Stock is Gaining Today
NEW YORK (TheStreet) -- Shares of Radian (RDN) - Get Report are up 2.59% to $12.29 in mid-afternoon trading Tuesday as MGIC Investment (MTG) led a rally of mortgage insurers after the company reported better-than-expected results for the 2016 second quarter and U.S. housing starts increased more than projected, Bloomberg reports.
New home construction in the U.S. rose more than anticipated last month, climbing 4.8% to a 1.19 million annualized rate, which was the most since February, according to Commerce Department data today.
MGIC said second-quarter policy sales jumped 10% to $250 million and claims cost dropped by about half, Bloomberg noted.
Radian is scheduled to post its 2016 second quarter results on July 28.
Shares of mortgage insurer Essent (ESNT) are up 0.67% to $24.16 and Genworth Financial (GNW) stock is advancing 0.88% to $2.87 this afternoon.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on Radian stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations.
But the team also finds weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: RDN