Trade-Ideas: Radian Group (RDN) Is Today's Pre-Market Mover With Heavy Volume Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Radian Group ( RDN) as a pre-market mover with heavy 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 $53.0 million.
  • RDN traded 421,780 shares today in the pre-market hours as of 8:06 AM, representing 11.9% of its average daily volume.

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More details on RDN:

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. The stock currently has a dividend yield of 0.1%. Currently there are 3 analysts that rate Radian Group a buy, no analysts rate it a sell, and 1 rates 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 $2.5 billion and is part of the financial sector and insurance industry. The stock has a beta of 2.77 and a short float of 23.2% with 11.19 days to cover. Shares are down 0.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Radian Group as a hold. 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 ratings report include:
  • The revenue growth came in higher than the industry average of 2.0%. Since the same quarter one year prior, revenues rose by 20.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The gross profit margin for RADIAN GROUP INC is currently lower than what is desirable, coming in at 28.16%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, RDN's net profit margin of 13.39% compares favorably to the industry average.
  • Net operating cash flow has decreased to -$97.30 million or 41.55% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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