Trade-Ideas LLC identified

Radian Group

(

RDN

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Radian Group as such a stock due to the following factors:

  • RDN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $55.0 million.
  • RDN has traded 250,661 shares today.
  • RDN is trading at 2.98 times the normal volume for the stock at this time of day.
  • RDN is trading at a new high 4.10% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on RDN:

TST Recommends

Radian Group Inc., through its subsidiaries, provides mortgage and real estate products and services in the United States. It operates through two segments, Mortgage Insurance, and Mortgage and Real Estate Services (MRES). The stock currently has a dividend yield of 0.1%. RDN has a PE ratio of 2. Currently there are 3 analysts that rate Radian Group a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Radian Group has been 2.8 million shares per day over the past 30 days. Radian Group has a market cap of $2.0 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.06 and a short float of 10.1% with 3.11 days to cover. Shares are down 29.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Radian Group as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, attractive valuation levels, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 14.6%. Since the same quarter one year prior, revenues slightly increased by 9.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, RADIAN GROUP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 61.31% to $60.81 million when compared to the same quarter last year. In addition, RADIAN GROUP INC has also vastly surpassed the industry average cash flow growth rate of -93.90%.
  • The gross profit margin for RADIAN GROUP INC is rather high; currently it is at 50.05%. Regardless of RDN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RDN's net profit margin of 23.57% compares favorably to the industry average.

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