Radian(US:RDN) ZACKSยท2025-05-22 13:40Core Viewpoint - Radian Group Inc. has authorized a new $750 million share buyback program, reflecting confidence in its financial strength and capital flexibility, while also increasing its quarterly dividend by 4.1% [1][4][3]. Group 1: Share Buyback Program - The board of directors has approved a new share repurchase program of $750 million, which will expire on December 31, 2027, bringing the total repurchase authority to approximately $863 million [1][2]. - Since 2020, Radian Group has repurchased 74 million shares for $1.8 billion, representing over 36% of shares outstanding as of January 1, 2020 [2][3]. - As of March 31, 2025, Radian repurchased shares for $207 million, with $336 million remaining under the current program [3]. Group 2: Dividend Increase - The board has approved a quarterly dividend of 25.5 cents per share, to be paid on June 17, 2025, to stockholders of record as of June 2 [4]. - This marks the sixth consecutive year of dividend increases, with the dividend more than doubling over the past five years and a six-year CAGR of 13% [4]. - Radian's current dividend yield stands at 3.1%, surpassing the industry average of 2.5%, making it attractive for yield-seeking investors [4]. Group 3: Financial Position and Growth - Radian Group maintains a solid balance sheet with sufficient liquidity and strong cash flows, enabling effective capital deployment through share repurchases and dividend hikes [3][5]. - The company is well-positioned to return capital to stockholders while pursuing growth initiatives and delivering innovative products and services [5]. - An improving mortgage insurance portfolio, declining claims, and a solid capital position are expected to contribute to impressive results for the insurer [5]. Group 4: Stock Performance - Radian's stock has gained 4.3% year-to-date, underperforming the industry and sector returns of 5.7%, but outperforming the Zacks S&P 500 composite growth of 0.2% [6][8].