Core Insights - Radian Group Inc. (RDN) shares have increased by 13.5% over the past year, outperforming the industry growth of 10.3% [1] - The company has a market capitalization of $4.86 billion, with an average trading volume of 0.8 million shares over the last three months [2] - RDN shares closed at $35.92, near a 52-week high of $38.84, indicating strong investor confidence and potential for further price appreciation [3] Financial Performance - RDN is trading at a price-to-book value of 1.05X, significantly lower than the industry average of 2.71X, suggesting a favorable entry point for investors [8] - The Zacks Consensus Estimate projects a 4.3% year-over-year increase in earnings per share (EPS) for 2025, with further increases of 5% and 9.6% in 2026 EPS and revenues, respectively [9] - RDN has a solid track record of beating earnings estimates, averaging a 12.15% surprise over the last four quarters [9] Analyst Sentiment - Analysts have raised their estimates for RDN, with the consensus for 2025 and 2026 EPS increasing by 9.4% and 4.8%, respectively, in the last 60 days [10] - The average price target for RDN is $39.17 per share, indicating a potential upside of 7.9% from the last closing price [11] Growth Strategy - Radian Group plans to acquire Inigo for $1.7 billion to expand into global multi-line specialty insurance, which is expected to double its total annual revenues [7][19] - The company anticipates mid-teens percentage growth in EPS and a 200-basis point increase in return on equity in the first full year post-acquisition [19] - RDN's mortgage insurance portfolio and declining claims are expected to strengthen its financial profile and support future earnings [17][21] Capital Management - Radian Group has been enhancing its capital position through contributions and reinsurance transactions, allowing for dividend hikes and share buybacks [20] - The company has increased its quarterly dividend by 4.1% in Q1 2025, marking the sixth consecutive year of dividend increases, with a current yield of 2.8% [22]