Radian (NYSE:RDN) stock is climbing higher on Wednesday as investors react to a new $300 million share repurchase plan.
According to a press release from Radian, this share repurchase plan is set to last for two years. It allows the company to repurchase shares of RDN stock in the open market or through private negotiations with shareholders.
Radian notes that this share repurchase plan goes into effect immediately and will last through Jan. 31, 2025. The company also points out that this move takes the place of its prior $400 million repurchase plan, which was fully utilized in October 2022.
What’s Behind the New Repurchase Plan for RDN Stock?
Radian is introducing this plan after undergoing several capital actions in 2022 to enhance its financial flexibility. It’s also expecting $300 million to $400 million in dividends from mortgage insurance subsidiary Radian Guaranty.
Rick Thornberry, CEO of Radian, said the following in a news release:
‘This is a significant milestone for our company, as the combination of these actions along with the expectation for recurring ordinary dividends from Radian Guaranty to Radian Group better position us to deliver even greater value for all of our stakeholders.”
RDN stock is up 5.3% in pre-market trading on Wednesday after seeing larger gains earlier this morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
