Buyback Wednesdays – Radian Group Launches a $300M Share Buyback Plan

Buyback activity edged up with 11 companies announcing their buybacks last week compared to only 8 companies in the prior week. A bunch of regional banks like Prosperity Bancshares (PB), Huntington Bancshares Incorporated (HBAN), and Independent Bank Group (IBTX) announced buybacks last week with HBAN leading the group with a $1 billion buyback announcement. We are once again seeing increased insider buying activity in regional banks as well.

The company we would like to focus on this week is Radian Group Inc. (RDN). Radian announced a $300 million share buyback that works out to around 9% of the company’s market cap at announcement.

The Pennsylvania-based $3.3 billion market cap company provides mortgage insurance and risk management services to lenders throughout the U.S. The company operates through two segments: Mortgage Insurance and Mortgage and Real Estate Services. Radian Guaranty Inc. is Radian’s core business that provides private mortgage insurance to safeguard lenders from losses and enables homebuyers to purchase homes with down payments of less than 20%.

Dividend & Share Buyback:

Radian pays a $0.20 per share quarterly dividend with a current yield of 3.8%.  During the third quarter of 2022, the company returned approximately $33 million to stockholders through dividends. It has grown its dividend by over 140% over the last 5 years.

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