What Happened?
Shares of mortgage insurance provider Radian Group (NYSE:RDN) fell 1.8% in the afternoon session after UBS lowered its price target on the stock to $40 from $43. The investment bank maintained its "Neutral" rating on Radian Group's shares despite the price target reduction. The adjustment, made by analyst Douglas Harter, represented a nearly 7% cut to the firm's valuation estimate for the company. This action appeared to contribute to weak sentiment among investors, which pressured the stock price.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Radian Group? Access our full analysis report here.
What Is The Market Telling Us
Radian Group’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 28 days ago when the stock gained 6.8% on the news that the company announced a definitive agreement to acquire Lloyd's specialty insurer Inigo Limited for $1.7 billion, signaling a major strategic shift.
The primarily all-cash deal marked a significant pivot for Radian, transforming it from a U.S. mortgage insurer into a global, multi-line specialty insurer. The company planned to fund the purchase using its available liquidity and excess capital without issuing new equity. Alongside the acquisition, Radian revealed plans to sell its Mortgage Conduit, Title, and Real Estate Services businesses to simplify its operations and focus on the new insurance venture. Management expected the Inigo deal to significantly boost financials, projecting a mid-teens percentage increase in earnings per share and a doubling of total annual revenue in the first full year after the transaction closed in early 2026.
Radian Group is up 2.9% since the beginning of the year, but at $32.83 per share, it is still trading 11.8% below its 52-week high of $37.23 from September 2025. Investors who bought $1,000 worth of Radian Group’s shares 5 years ago would now be looking at an investment worth $1,850.
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