Update shared on20 Sep 2025
Fair value Increased 4.50%Despite ongoing challenges in mortgage origination and limited near-term sector catalysts, Radian Group’s balanced business model and strong operating trends have led analysts to raise their price target modestly from $37.00 to $38.67.
Analyst Commentary
- Challenging mortgage origination environment persists, impacting growth outlook.
- Balanced business models with meaningful servicing segments are favored for resilience.
- Strong operating trends among mortgage insurers have been maintained year-to-date.
- Lack of near-term positive catalysts limits upside potential in the sector.
- Modest increase in credit risk anticipated as home price appreciation slows in the latter half of 2025, keeping valuations range-bound.
What's in the News
- Board approved amendment to bylaws implementing Delaware forum selection for internal corporate claims and exclusive federal court jurisdiction for Securities Act claims.
- Announced divestiture of Mortgage Conduit, Title, and Real Estate Services businesses from the "All Other" segment, with board approval and expected completion by Q3 2026; affected businesses to be reported as discontinued operations.
- Completed repurchase of 6,957,942 shares (4.93%) for $223.06 million as part of ongoing buyback, totaling 25,725,683 shares (17.33%) for $787.63 million under the January 2023 program.
- No shares repurchased under the buyback program announced on May 21, 2025.
Valuation Changes
Summary of Valuation Changes for Radian Group
- The Consensus Analyst Price Target has risen slightly from $37.00 to $38.67.
- The Future P/E for Radian Group has risen slightly from 9.65x to 10.09x.
- The Discount Rate for Radian Group remained effectively unchanged, moving only marginally from 7.77% to 7.79%.
Disclaimer
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