Radian Group (RDN) Soars 3.22% on Share Repurchase Program

Radian Group (RDN) shares surged 0.81% today, marking the second consecutive day of gains, with a total increase of 3.22% over the past two days. The stock price reached its highest level since December 2024, with an intraday gain of 1.33%.

The strategy of buying RDN shares after they reached a recent high and holding for one week yielded strong returns over the past five years. The strategy achieved an overall return of 120.65%, surpassing the benchmark return of 73.52% by 47.13%. While the strategy had a maximum drawdown of -28.06%, it maintained a relatively high Sharpe ratio of 0.59, indicating good risk-adjusted returns. The volatility of the strategy was 30.12%, which contributed to the moderate level of risk.

Compass Point recently downgraded Radian Group from "Buy" to "Neutral," while raising the price target from $34 to $37. This change in rating could influence investor sentiment and affect the stock's performance. The downgrade might be a result of market conditions or internal assessments, but it is important for investors to consider the reasons behind the change.

In a positive development, Radian Group announced a new $750 million share repurchase program. This initiative demonstrates the company's confidence in its financial health and future prospects. By reducing the number of shares outstanding, the program could potentially increase earnings per share, making the stock more attractive to investors. This move is often seen as a bullish signal, as it indicates that the company believes its shares are undervalued.