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UBS Cuts Radian Group (RDN) Price Target to $40; Company Announces $1.7 Billion Inigo Acquisition
Yahoo Financeยท 2025-10-30 23:06
Core Insights - Radian Group Inc. is recognized among the 15 Dividend Growth Stocks with the highest growth rates [1] - UBS has reduced the price target for Radian Group from $43 to $40 while maintaining a Neutral rating [3] Company Developments - Radian Group announced a definitive agreement to acquire Inigo Limited for $1.7 billion, primarily in cash [3] - The acquisition will be financed through Radian's available liquidity and excess capital from its subsidiaries [3] - This acquisition marks a significant transition for Radian from a leading US mortgage insurer to a global, diversified specialty insurer [4] Financial Impact - The deal is expected to double Radian's annual revenue and enhance capital allocation flexibility across various insurance lines [4] - In the second quarter, Radian Guaranty distributed a $200 million ordinary dividend, repurchased $223 million worth of shares, and paid $35 million in dividends [5] - Radian has been increasing its dividend payouts for six consecutive years, currently offering a quarterly dividend of $0.255 per share with a yield of 3.03% as of October 30 [5]