Shares of Radian Group Inc.
RDN,
soared 18.1% toward a five-month high in premarket trading Wednesday, after the mortgage insurance company announced a number of capital actions to enhance financial flexibility, including a new $300 million stock repurchase program. The new program, which represents about 9.6% of Radian’s market capitalization of $3.11 billion as of Tuesday’s close, replaces the previous $400 million program that was completed in October 2022. The company also said it expects its Radian Guaranty subsidiary to resume paying recurring ordinary dividends to Radian, with $300 million to $400 million expected to be paid in 2023. Radian Guaranty hasn’t paid a dividend to Radian since the start of the financial crisis in 2007. “We are delighted to start the new year in an even stronger position, as these capital actions underscore Radian’s financial strength and flexibility,” said Radian Chief Executive Rick Thornberry. The stock has gained 1.6% over the past three months through Tuesday, while the S&P 500
SPX,
has tacked on 7.3%.
