NEW YORK (TheStreet) -- Shares of Radian Group Inc. (RDN) are higher 3.20% to $14.50 today after the company said its net income for the 2014 first quarter increased and that it's acquiring Clayton Holdings LLC.
The credit enhancement company said net income was $202.8 million, or 94 cents per diluted share, compared to a net loss of -$187.5 million, or -$1.30 per diluted share from the 2013 first quarter.
The company said it will purchase Clayton Holdings LLC for $305 million in order to enhance its presence in the private mortgage insurance industry, Reuters reported.
TheStreet Ratings team rates RADIAN GROUP INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate RADIAN GROUP INC (RDN) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: