Genworth Financial Inc. (GNW) Shares Slip, Investors Watching Closely, Here is Why

Genworth Financial Inc. (NYSE: GNW) shares rose yesterday on heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Shares of Genworth Financial Inc. (NYSE: GNW) were downgraded by analysts at BTIG Research in a note to their investors today. The company currently has a rating of Neutral on the stock. A number of other analysts have spoken on the company recently, and the company has earned a consensus one-year price target of $3.95, a decrease compared to the opening price of $4.98. Genworth Financial Inc. stock has a 52-week high of $5.75. Downgrades are more common when analysts believe that the future prospects for the security have weakened from the original recommendation, usually caused by an important and major change in the company’s actions, future vision or industry.

Meanwhile, the Dow Jones Industrial Average DJIA, +0.62% finished up 112.58 points, or 0.6%, at 18,281.03 yesterday.

The Nasdaq Composite Index COMP, +0.50% rose 26.36 points, or 0.5%, to end at 5,316.02, and is up 0.1% for the week to date.

The S&P 500 index SPX, +0.43% added 9.24 points, or 0.4%, to close at 2,159.73.

Genworth Financial Inc. (NYSE: GNW) shares last traded at $5.14, which represents an increase of $0.07 or 0.01 compared to the previous closing price. Opening at $4.98, they fluctuated from $4.97 and $5.22 throughout the day.

Genworth Financial Inc. (NYSE: GNW) now has a market cap of 2.56B.

Genworth Financial Inc.Trading Volume

The stock’s average daily volume is 8,032,640 shares out of a total float 497,120,000 and some 8,309,785 shares crossed the trading desk yesterday, higher than the average. Heavy volume accumulation by institutional investors may be on the horizon as the combination of significant gains in trading volume and price inflation can be determining components.

However, a single day of significant buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.

Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these retain teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.

Genworth Financial Inc. Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.

With that in mind, Genworth Financial Inc. (NYSE: GNW) now has a 50-day MA of $4.72 and 200-day MA of $3.53. It has traded in a 52-week range between $1.57 – 5.75 and today’s last price is 0.11% lower than the 52 week high of $5.75.

Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings by at least 25% for 3 consecutive years.

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