5 Stocks to Buy for Interest Rate Hikes

4. Radian Group Inc. (NYSE:RDN)

Number of Hedge Fund Holders: 31

Radian Group Inc. (NYSE:RDN) is a Pennsylvania-based company that provides mortgage and real estate services in the United States. The company offers private mortgage insurance, credit risk management, contract underwriting, and fulfillment solutions. Radian Group Inc. (NYSE:RDN) is one of the stocks to buy for interest rate hikes. The company paid a quarterly dividend of $0.20 per share to shareholders on September 1. The dividend yield on September 20 stood at 3.86%. 

On August 18, BofA analyst Mihir Bhatia upgraded Radian Group Inc. (NYSE:RDN) to Neutral from Underperform with a price target of $24, up from $22.50. The company’s capital return in Q2 “was impressive” and while execution risk remains for the homogeneous segment, at present prices the stock offers 3% upside potential and 8% total return, the analyst told investors in a research note.

According to Insider Monkey’s data, 31 hedge funds were bullish on Radian Group Inc. (NYSE:RDN) at the end of June 2022, compared to 37 funds in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the leading position holder in the company, with roughly 3 million shares worth $58.5 million.