Genworth Financial (NYSE:GNW) Shares Gap Down - What's Next?

Key Points

• Genworth Financial shares fell 6.8%, opening at $9.95 versus a prior close of $10.60, before trading near $10.20 on volume exceeding 1 million shares.
• Analyst sentiment remains positive: the stock carries a consensus “Buy” rating with a $12.00 price target, despite the recent decline.
• Genworth slightly exceeded quarterly EPS expectations at $0.29 versus $0.28, while institutional investors own 81.85% of the company; however, CEO Thomas J. McInerney and another executive recently sold shares.

Genworth Financial, Inc. (NYSE:GNW - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $10.60, but opened at $9.95. Genworth Financial shares last traded at $10.1950, with a volume of 1,006,763 shares changing hands.

Analyst Ratings Changes

A number of research analysts have issued reports on GNW shares. Zacks Research raised shares of Genworth Financial to a "hold" rating in a research report on Wednesday, May 27th. Weiss Ratings raised shares of Genworth Financial from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, September 2nd. Wall Street Zen upgraded shares of Genworth Financial from a "sell" rating to a "hold" rating in a research report on Sunday, July 12th. Finally, Keefe, Bruyette & Woods upgraded shares of Genworth Financial from a "moderate buy" rating to a "strong-buy" rating in a research report on Tuesday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Buy" and a consensus price target of $12.00.

Genworth Financial Stock Down 6.8%

The company has a market capitalization of $3.73 billion, a P/E ratio of 18.99 and a beta of 0.85. The company has a 50-day moving average of $9.95 and a two-hundred day moving average of $9.17. The company has a quick ratio of 0.29, a current ratio of 0.29 and a debt-to-equity ratio of 0.15.

Genworth Financial (NYSE:GNW - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The financial services provider reported $0.29 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.28 by $0.01. Genworth Financial had a return on equity of 1.06% and a net margin of 2.87%.The business had revenue of $1.03 billion during the quarter, compared to the consensus estimate of $1.90 billion. On average, research analysts predict that Genworth Financial, Inc. will post 1.11 EPS for the current year.

Insider Activity

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

Institutional Trading of Genworth Financial

Several hedge funds and other institutional investors have recently made changes to their positions in GNW. Donald Smith & CO. Inc. purchased a new stake in shares of Genworth Financial in the second quarter worth $212,906,000. Norges Bank purchased a new position in shares of Genworth Financial in the 4th quarter worth about $45,912,000. California State Teachers Retirement System raised its position in shares of Genworth Financial by 772.0% in the 2nd quarter. California State Teachers Retirement System now owns 4,200,295 shares of the financial services provider's stock worth $39,777,000 after purchasing an additional 3,718,616 shares during the last quarter. Bank of New York Mellon Corp bought a new position in Genworth Financial in the 2nd quarter worth about $22,798,000. Finally, Bank of America Corp DE boosted its stake in Genworth Financial by 133.2% in the 1st quarter. Bank of America Corp DE now owns 2,158,625 shares of the financial services provider's stock worth $17,528,000 after purchasing an additional 1,232,931 shares in the last quarter. Hedge funds and other institutional investors own 81.85% of the company's stock.

About Genworth Financial

Genworth Financial, Inc is an insurance holding company headquartered in Richmond, Virginia. The company's primary business is U.S. mortgage insurance, which helps lenders manage credit risk and enables eligible homebuyers to purchase homes with down payments below traditional requirements. This business operates through Enact Holdings, Inc, a publicly traded subsidiary in which Genworth remains a significant shareholder.

Genworth also manages a substantial portfolio of long-term care insurance policies, providing benefits that may help cover nursing care, assisted living, home health care and other extended-care services.

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