A Look At Radian Group (RDN) Valuation As Shares Trade Near Recent Levels

Radian Group (RDN) is back on investors’ radar after recent share price moves. The stock last closed at $35.92, prompting fresh questions about how its mortgage and real estate services business is currently valued.

See our latest analysis for Radian Group.

While the latest move to $35.92 comes with a modest 1-day share price return of 0.19% decline and a 7-day share price return of 0.99% decline, the share price return over the last 30 and 90 days has been positive. Over the longer term, total shareholder returns of 16.93% over 1 year and 110.32% over 3 years suggest momentum has generally been supportive over time.

If Radian Group’s track record has you thinking about what else is out there, it could be a good moment to broaden your search with fast growing stocks with high insider ownership.

Radian Group now sits at $35.92, with an intrinsic value estimate suggesting a sizeable discount and a price target that still sits higher. So are you looking at an undervalued mortgage insurer, or is the market already pricing in future potential?

Most Popular Narrative: 7.1% Undervalued

With Radian Group closing at $35.92 against a narrative fair value of $38.67, the current setup points to a gap investors may want to understand.

The ongoing entry of millennials and first-time homebuyers into the housing market is driving persistently strong housing demand, which is reflected in Radian's all-time high mortgage insurance in force and continued growth in new insurance written, supporting future revenue growth.

Read the complete narrative.

What sits behind that valuation gap? A detailed earnings path, shifting profit margins, and a future P/E that differs sharply from the wider sector. The numbers matter.

Result: Fair Value of $38.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on mortgage insurance staying resilient, and any sustained weakness in non-core segments or housing affordability could quickly challenge that undervalued story.

Find out about the key risks to this Radian Group narrative.

Build Your Own Radian Group Narrative

If this take on Radian Group does not quite fit how you see the numbers, you can review the data yourself and build a personalised view in just a few minutes, then Do it your way.

A great starting point for your Radian Group research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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