Genworth Financial (NYSE:GNW) Stock Rating Lowered by Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods downgraded Genworth Financial from “moderate buy” to “hold,” while the overall analyst consensus remains “Hold” with an average price target of $10.50.
• Genworth opened at $9.39, with a market capitalization of approximately $3.55 billion and a 12-month trading range of $7.84 to $10.69. Its latest quarterly earnings of $0.29 per share slightly exceeded expectations.
• Company insiders recently reduced their holdings, including CEO Thomas McInerney’s sale of 100,000 shares; insiders own 1.80% of the stock, while institutional investors own 81.85%.

Genworth Financial (NYSE:GNW - Get Free Report) was downgraded by research analysts at Keefe, Bruyette & Woods from a "moderate buy" rating to a "hold" rating in a research report issued on Thursday, Zacks reports.

Several other brokerages have also weighed in on GNW. Weiss Ratings lowered Genworth Financial from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday. Wall Street Zen raised shares of Genworth Financial from a "sell" rating to a "hold" rating in a report on Sunday, July 12th. Three equities research analysts have rated the stock with a Hold rating. According to MarketBeat, Genworth Financial currently has a consensus rating of "Hold" and an average price target of $10.50.

Genworth Financial Price Performance

NYSE:GNW opened at $9.39 on Thursday. The company has a current ratio of 0.29, a quick ratio of 0.29 and a debt-to-equity ratio of 0.15. The firm has a market cap of $3.55 billion, a price-to-earnings ratio of 18.07 and a beta of 0.88. The company's 50-day moving average is $9.89 and its two-hundred day moving average is $9.34. Genworth Financial has a 12-month low of $7.84 and a 12-month high of $10.69.

Genworth Financial (NYSE:GNW - Get Free Report) last released its earnings results on Wednesday, August 5th. The financial services provider reported $0.29 EPS for the quarter, topping the consensus estimate of $0.28 by $0.01. Genworth Financial had a net margin of 2.87% and a return on equity of 1.06%. The firm had revenue of $1.03 billion during the quarter, compared to analysts' expectations of $1.90 billion. Research analysts expect that Genworth Financial will post 1.11 EPS for the current year.

Insider Activity at Genworth Financial

In related news, CEO Thomas J. Mcinerney sold 100,000 shares of the company's stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $10.53, for a total transaction of $1,053,000.00. Following the sale, the chief executive officer directly owned 5,068,883 shares of the company's stock, valued at approximately $53,375,337.99. This represents a 1.93% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Melissa Hagerman sold 14,708 shares of the firm's stock in a transaction on Monday, August 24th. The stock was sold at an average price of $9.91, for a total value of $145,756.28. Following the transaction, the executive vice president owned 192,539 shares in the company, valued at $1,908,061.49. This trade represents a 7.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. HB Wealth Management LLC boosted its position in Genworth Financial by 8.8% during the 2nd quarter. HB Wealth Management LLC now owns 13,482 shares of the financial services provider's stock valued at $128,000 after purchasing an additional 1,089 shares during the period. PNC Financial Services Group Inc. boosted its holdings in shares of Genworth Financial by 2.3% during the first quarter. PNC Financial Services Group Inc. now owns 95,745 shares of the financial services provider's stock valued at $777,000 after acquiring an additional 2,139 shares during the period. GAMMA Investing LLC grew its position in shares of Genworth Financial by 16.6% during the third quarter. GAMMA Investing LLC now owns 18,945 shares of the financial services provider's stock worth $170,000 after acquiring an additional 2,695 shares during the last quarter. DGS Capital Management LLC increased its holdings in shares of Genworth Financial by 28.1% in the 1st quarter. DGS Capital Management LLC now owns 13,061 shares of the financial services provider's stock worth $106,000 after acquiring an additional 2,867 shares during the period. Finally, Counterpoint Mutual Funds LLC lifted its position in Genworth Financial by 10.3% in the 1st quarter. Counterpoint Mutual Funds LLC now owns 36,784 shares of the financial services provider's stock valued at $299,000 after purchasing an additional 3,427 shares during the last quarter. 81.85% of the stock is currently owned by institutional investors.

About Genworth Financial

Genworth Financial, Inc is a financial services company focused primarily on mortgage insurance and long-term care insurance. Through its U.S. mortgage insurance operations, including its majority-owned subsidiary Enact Holdings, the company helps lenders manage credit risk and supports access to homeownership by insuring residential mortgage loans.

Genworth also manages a portfolio of U.S. life insurance and long-term care insurance products. Its life insurance operations primarily serve existing policyholders, with an emphasis on administering in-force policies and managing long-term obligations rather than pursuing broad new sales.

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