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

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 subject of several other reports. Wells Fargo & Co set a $3.00 price objective on shares of Genworth Financial and gave the stock a hold rating in a research note on Thursday, March 1st. BTIG Research reiterated a hold rating on shares of Genworth Financial in a research report on Tuesday, June 12th. ValuEngine downgraded Genworth Financial from a buy rating to a hold rating in a research report on Thursday, March 1st. Finally, Keefe, Bruyette & Woods reiterated a hold rating on shares of Genworth Financial in a research report on Thursday, April 12th. Two 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’s stock. The stock has a consensus rating of Hold and a consensus target price of $4.17.

NYSE GNW opened at $4.40 on Tuesday. The company has a quick ratio of 0.28, a current ratio of 0.28 and a debt-to-equity ratio of 0.31. The firm has a market cap of $2.18 billion, a price-to-earnings ratio of 3.17, a PEG ratio of 0.89 and a beta of 2.44. Genworth Financial has a 52 week low of $2.66 and a 52 week high of $4.92.

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

Several large investors have recently added to or reduced their stakes in GNW. BlackRock Inc. lifted its position in shares of Genworth Financial by 11.2% during the fourth quarter. BlackRock Inc. now owns 54,184,339 shares of the financial services provider’s stock worth $168,512,000 after purchasing an additional 5,446,174 shares during the last quarter. Thompson Siegel & Walmsley LLC lifted its position in shares of Genworth Financial by 27,683.0% during the first quarter. Thompson Siegel & Walmsley LLC now owns 4,195,231 shares of the financial services provider’s stock worth $11,872,000 after purchasing an additional 4,180,131 shares during the last quarter. River Road Asset Management LLC bought a new stake in shares of Genworth Financial during the first quarter worth $10,021,000. Mackay Shields LLC bought a new stake in shares of Genworth Financial during the first quarter worth $3,979,000. Finally, Bank of New York Mellon Corp lifted its position in shares of Genworth Financial by 18.5% during the fourth quarter. Bank of New York Mellon Corp now owns 7,030,319 shares of the financial services provider’s stock worth $21,865,000 after purchasing an additional 1,099,278 shares during the last quarter. Institutional investors and hedge funds own 65.43% of the company’s stock.

About Genworth Financial

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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