Genworth Financial (NYSE:GNW) Stock Breaks Above 200 Day Moving Average After Earnings Miss

Key Points

• Genworth Financial shares rose above their 200-day moving average, reaching $9.25 and last trading at $9.165, compared with a 200-day average of $9.12.
• The company reported a quarterly loss of $0.12 per share, missing the $0.28-per-share consensus estimate; revenue of $1.04 billion also came in below analysts’ $1.88 billion expectation.
• Analyst sentiment is mixed but averages to Hold: one analyst rates the stock Buy and two rate it Hold, with an average price target of $10.50.

Genworth Financial, Inc. (NYSE:GNW - Get Free Report) crossed above its 200-day moving average during trading on Wednesday after the company announced better than expected quarterly earnings. The stock has a 200-day moving average of $9.12 and traded as high as $9.25. Genworth Financial shares last traded at $9.1650, with a volume of 3,728,221 shares changing hands.

The financial services provider reported ($0.12) EPS for the quarter, missing the consensus estimate of $0.28 by ($0.40). The firm had revenue of $1.04 billion during the quarter, compared to analysts' expectations of $1.88 billion. Genworth Financial had a net margin of 2.87% and a return on equity of 1.06%.

Analyst Ratings Changes

GNW has been the subject of several research reports. Keefe, Bruyette & Woods downgraded Genworth Financial from an "outperform" rating to a "market perform" rating and cut their price target for the stock from $11.50 to $10.50 in a research note on Friday, October 9th. Wall Street Zen upgraded Genworth Financial from a "sell" rating to a "hold" rating in a research note on Sunday, July 12th. Finally, Weiss Ratings raised Genworth Financial from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, October 21st. One analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $10.50.

Insiders Place Their Bets

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

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Reyes Financial Architecture Inc. purchased a new position in shares of Genworth Financial in the 3rd quarter worth about $31,000. Fortitude Family Office LLC boosted its holdings in Genworth Financial by 647.2% in the third quarter. Fortitude Family Office LLC now owns 4,528 shares of the financial services provider's stock worth $41,000 after purchasing an additional 3,922 shares during the last quarter. Integrated Wealth Concepts LLC bought a new stake in shares of Genworth Financial in the second quarter worth $49,000. Atlas Wealth LLC purchased a new stake in shares of Genworth Financial during the 1st quarter valued at about $51,000. Finally, Farther Finance Advisors LLC lifted its stake in shares of Genworth Financial by 436.3% in the 3rd quarter. Farther Finance Advisors LLC now owns 5,760 shares of the financial services provider's stock worth $52,000 after purchasing an additional 4,686 shares during the period. Hedge funds and other institutional investors own 81.85% of the company's stock.

Genworth Financial Stock Up 1.5%

The firm has a market cap of $3.46 billion, a PE ratio of 17.63 and a beta of 0.87. 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 company's 50 day moving average price is $9.55 and its two-hundred day moving average price is $9.12.

About Genworth Financial

Genworth Financial, Inc is an insurance holding company headquartered in Richmond, Virginia. The company's principal business is mortgage insurance, primarily through its majority-owned subsidiary, Enact Holdings, Inc Enact provides private mortgage insurance to lenders and mortgage investors, helping eligible borrowers obtain home loans with smaller down payments while reducing lenders' exposure to borrower default.

Genworth also manages long-term care insurance businesses and legacy insurance obligations in the United States.

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