Radian Group Inc. (RDN): Today's Featured Insurance Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Radian Group ( RDN) pushed the Insurance industry lower today making it today's featured Insurance laggard. The industry as a whole closed the day up 0.5%. By the end of trading, Radian Group fell 15 cents (-1.4%) to $10.20 on average volume. Throughout the day, 8.2 million shares of Radian Group exchanged hands as compared to its average daily volume of 9.6 million shares. The stock ranged in price between $10.16-$10.66 after having opened the day at $10.50 as compared to the previous trading day's close of $10.35. Other companies within the Insurance industry that declined today were: Kingstone Companies ( KINS), down 5.2%, Hallmark Financial Services ( HALL), down 4.3%, Stewart Information Services ( STC), down 3.3%, and Imperial Holdings ( IFT), down 3.1%.
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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. Radian Group has a market cap of $1.43 billion and is part of the financial sector. Shares are up 69.4% year to date as of the close of trading on Monday. Currently there are three analysts that rate Radian Group a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Radian Group as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share.

On the positive front, eHealth ( EHTH), up 15.7%, Crawford & Company ( CRD.A), up 4.9%, United Fire Group ( UFCS), up 4.4%, and Meadowbrook Insurance Group ( MIG), up 4.3%, were all gainers within the insurance industry with MetLife ( MET) being today's featured insurance industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the insurance industry could consider KBW Insurance ETF ( KIE) while those bearish on the insurance industry could consider Proshares Short Financials ( SEF).

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