Genworth Financial (NYSE:GNW) Announces Quarterly Earnings Results

Key Points

• Genworth Financial beat earnings expectations, reporting quarterly EPS of $0.29 versus the $0.28 consensus estimate. Revenue was $1.03 billion, well below the $1.70 billion estimate.
• Shares slipped 0.2% to $9.67, while the stock remains below its 52-week high of $10.20. Analysts maintain a consensus “Hold” rating with a $12.00 price target.
• Company insiders sold shares, including the CEO’s sale of 100,000 shares and a director’s sale of 50,000 shares. Institutional investors hold approximately 81.85% of Genworth’s stock.

Genworth Financial (NYSE:GNW - Get Free Report) issued its earnings results on Wednesday. The financial services provider reported $0.29 earnings per share for the quarter, beating the consensus estimate of $0.28 by $0.01, FiscalAI reports. The business had revenue of $1.03 billion for the quarter, compared to the consensus estimate of $1.70 billion. Genworth Financial had a net margin of 2.96% and a return on equity of 1.73%.

Genworth Financial Trading Down 0.2%

Shares of Genworth Financial stock traded down $0.02 during trading hours on Thursday, reaching $9.67. 3,753,895 shares of the company's stock were exchanged, compared to its average volume of 3,233,094. The firm has a market capitalization of $3.70 billion, a price-to-earnings ratio of 18.60 and a beta of 0.87. The company has a fifty day moving average of $9.35 and a 200-day moving average of $8.88. Genworth Financial has a 52-week low of $7.84 and a 52-week high of $10.20. The company has a current ratio of 0.29, a quick ratio of 0.29 and a debt-to-equity ratio of 0.15.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on GNW. Keefe, Bruyette & Woods increased their target price on Genworth Financial from $11.00 to $12.00 and gave the stock an "outperform" rating in a research note on Monday, July 13th. Weiss Ratings cut Genworth Financial from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, July 17th. Zacks Research raised shares of Genworth Financial to a "hold" rating in a report on Wednesday, May 27th. Finally, Wall Street Zen raised shares of Genworth Financial from a "sell" rating to a "hold" rating in a report on Sunday, July 12th. One research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $12.00.

Insider Activity

In other Genworth Financial news, Director Robert P. Restrepo, Jr. sold 50,000 shares of Genworth Financial stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $9.12, for a total transaction of $456,000.00. Following the transaction, the director directly owned 92,655 shares of the company's stock, valued at $845,013.60. The trade was a 35.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Thomas J. Mcinerney sold 100,000 shares of the business's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $9.27, for a total value of $927,000.00. Following the transaction, the chief executive officer owned 5,368,883 shares in the company, valued at approximately $49,769,545.41. This represents a 1.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 1.80% of the company's stock.

Institutional Investors Weigh In On Genworth Financial

Several hedge funds have recently modified their holdings of GNW. Headlands Technologies LLC acquired a new stake in Genworth Financial in the second quarter valued at approximately $44,000. Larson Financial Group LLC lifted its position in shares of Genworth Financial by 12,597.7% during the third quarter. Larson Financial Group LLC now owns 5,587 shares of the financial services provider's stock worth $50,000 after purchasing an additional 5,543 shares in the last quarter. Danske Bank A S purchased a new position in shares of Genworth Financial in the third quarter valued at $60,000. EverSource Wealth Advisors LLC grew its holdings in Genworth Financial by 140.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 8,063 shares of the financial services provider's stock valued at $63,000 after purchasing an additional 4,708 shares in the last quarter. Finally, Strs Ohio acquired a new position in Genworth Financial in the 1st quarter worth $82,000. 81.85% of the stock is currently owned by hedge funds and other institutional investors.

Genworth Financial Company Profile

Genworth Financial NYSE: GNW is a leading financial security company offering a broad range of insurance products. Based in Richmond, Virginia, Genworth provides individuals and families with solutions designed to protect against long-term care expenses, secure life insurance needs and support homeownership through private mortgage insurance. With operations spanning the United States, Canada and Australia, the company serves both retail and institutional clients through a diversified portfolio of risk management services.

The company's Private Mortgage Insurance (PMI) segment offers coverage to lenders and consumers in the US, Canada and Australia, enabling homebuyers to purchase properties with lower down payments.

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