Genworth Financial (GNW) Cut to Sell at Zacks Investment Research

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Zacks Investment Research cut shares of Genworth Financial (NYSE:GNW) from a hold rating to a sell rating in a research report released on Tuesday.

According to Zacks, “New products and pricing changes in the U.S. Life Insurance Division implemented over the past couple of years led to lower sales for Genworth. Nonetheless, shares of Genworth have outperformed the industry in a year’s time. Genworth has agreed to be acquired by China Oceanwide. This merger will consolidate Genworth’s financial position in the mortgage insurance and long-term care insurance markets. Also, it will remain committed toward its key financial priorities of strengthening the balance sheet and stabilizing and improving ratings over time, particularly in its U.S. MI business. It is intensifying focus on streamlining and rationalizing business to mainly improve performance and enhance financial and strategic flexibility.”

GNW has been the topic of several other research reports. Wells Fargo & Co reissued a hold rating and issued a $5.00 target price (up previously from $3.00) on shares of Genworth Financial in a report on Wednesday, June 6th. ValuEngine lowered Genworth Financial from a buy rating to a hold rating in a report on Thursday, March 1st. BTIG Research reissued a hold rating on shares of Genworth Financial in a report on Tuesday, June 12th. Finally, Keefe, Bruyette & Woods reissued a hold rating on shares of Genworth Financial in a report on Thursday, April 12th. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and one has assigned a buy rating to the company. Genworth Financial currently has a consensus rating of Hold and a consensus price target of $4.17.

Genworth Financial opened at $4.50 on Tuesday, Marketbeat.com reports. The company has a current ratio of 0.28, a quick ratio of 0.28 and a debt-to-equity ratio of 0.31. The firm has a market capitalization of $2.20 billion, a price-to-earnings ratio of 3.24, a PEG ratio of 0.90 and a beta of 2.44. Genworth Financial has a fifty-two week low of $2.66 and a fifty-two week high of $4.92.

Genworth Financial (NYSE:GNW) last posted its earnings results on Tuesday, May 1st. The financial services provider reported $0.25 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.26 by ($0.01). The firm had revenue of $2.12 billion during the quarter, compared to analyst estimates of $2.15 billion. Genworth Financial had a net margin of 9.39% and a return on equity of 4.50%. The firm’s revenue for the quarter was down 2.6% on a year-over-year basis. During the same period last year, the company posted $0.29 EPS. equities analysts predict that Genworth Financial will post 0.98 EPS for the current year.

A number of institutional investors have recently bought and sold shares of the business. Oppenheimer & Co. Inc. lifted its position in shares of Genworth Financial by 29.7% in the first quarter. Oppenheimer & Co. Inc. now owns 76,426 shares of the financial services provider’s stock valued at $216,000 after acquiring an additional 17,500 shares in the last quarter. Ladenburg Thalmann Financial Services Inc. lifted its position in shares of Genworth Financial by 6.2% in the first quarter. Ladenburg Thalmann Financial Services Inc. now owns 303,284 shares of the financial services provider’s stock valued at $858,000 after acquiring an additional 17,750 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank lifted its position in shares of Genworth Financial by 82.7% in the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 39,837 shares of the financial services provider’s stock valued at $113,000 after acquiring an additional 18,036 shares in the last quarter. Raymond James Financial Services Advisors Inc. lifted its position in shares of Genworth Financial by 52.1% in the fourth quarter. Raymond James Financial Services Advisors Inc. now owns 55,077 shares of the financial services provider’s stock valued at $171,000 after acquiring an additional 18,868 shares in the last quarter. Finally, Xact Kapitalforvaltning AB lifted its position in shares of Genworth Financial by 36.4% in the first quarter. Xact Kapitalforvaltning AB now owns 70,890 shares of the financial services provider’s stock valued at $201,000 after acquiring an additional 18,900 shares in the last quarter. 65.43% of the stock is currently owned by institutional investors.

Genworth Financial Company Profile

Genworth Financial, Inc provides insurance and homeownership solutions in the United States and internationally. It operates through five segments: U.S. Mortgage Insurance, Canada Mortgage Insurance, Australia Mortgage Insurance, U.S. Life Insurance, and Runoff. The U.S. Mortgage Insurance segment offers mortgage insurance products primarily insuring prime-based, individually underwritten residential mortgage loans.

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