Genworth Financial Inc. (GNW) Lifted to “Buy” at Zacks Investment Research
Genworth Financial Inc. (NYSE:GNW) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Monday. The brokerage presently has a $5.50 target price on the stock. Zacks Investment Research’s price objective indicates a potential upside of 10.89% from the company’s current price.
According to Zacks, “Genworth is intensifying focus on streamlining and rationalizing business to improve performance, enhance financial and strategic flexibility, strengthen mortgage insurance, and increase excess capital, earnings and ROE. To that end, Genworth is in the process of separating the long-term care business to restructure the US Life vertical. Genworth also exited its European operations in the wake of difficult economic conditions there. Notably, the Zacks Consensus Estimate has been witnessing upward revisions over the last 60 days. However, exposure to a low interest rate environment continues to weigh on it’s investment profile. Concerning its performance, Genworth has been hedging its cash flows to shield against low rates and LTC margin erosion. Also, Genworth stopped sales of traditional life insurance and fixed-annuity products in first-quarter 2016 resulting in $150 million in cost savings.”
Several other equities analysts have also recently commented on GNW. JPMorgan Chase & Co. reissued a “hold” rating on shares of Genworth Financial in a research note on Wednesday, August 3rd. Morgan Stanley reissued a “neutral” rating on shares of Genworth Financial in a research note on Wednesday, August 3rd. BTIG Research reissued a “buy” rating and set a $5.00 target price on shares of Genworth Financial in a research note on Thursday, August 4th. Keefe, Bruyette & Woods reissued a “market perform” rating and set a $3.50 target price on shares of Genworth Financial in a research note on Monday, September 5th. Finally, Compass Point cut shares of Genworth Financial from a “buy” rating to a “neutral” rating in a research note on Monday, September 19th. Six equities research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. The stock has a consensus rating of “Hold” and an average price target of $5.75.
Shares of Genworth Financial (NYSE:GNW) traded down 0.20% during trading on Monday, hitting $4.95. 4,370,834 shares of the company traded hands. The firm has a 50 day moving average price of $4.60 and a 200-day moving average price of $3.48. Genworth Financial has a one year low of $1.57 and a one year high of $5.75. The stock’s market cap is $2.47 billion.
Genworth Financial (NYSE:GNW) last released its earnings results on Tuesday, August 2nd. The company reported $0.25 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.21 by $0.04. The firm had revenue of $2.24 billion for the quarter, compared to analysts’ expectations of $2.09 billion. Genworth Financial had a negative net margin of 4.24% and a positive return on equity of 1.32%. Genworth Financial’s quarterly revenue was up 3.7% on a year-over-year basis. During the same quarter last year, the company earned $0.24 EPS. Analysts predict that Genworth Financial will post $0.88 EPS for the current year.
Hedge funds and other institutional investors have recently made changes to their positions in the company. Solus Alternative Asset Management LP boosted its position in shares of Genworth Financial by 57.6% in the first quarter. Solus Alternative Asset Management LP now owns 15,000,000 shares of the company’s stock valued at $40,950,000 after buying an additional 5,483,200 shares during the last quarter. BlackRock Fund Advisors boosted its position in shares of Genworth Financial by 26.0% in the second quarter. BlackRock Fund Advisors now owns 20,472,445 shares of the company’s stock valued at $52,819,000 after buying an additional 4,223,090 shares during the last quarter. State Street Corp boosted its position in shares of Genworth Financial by 16.9% in the second quarter. State Street Corp now owns 21,007,742 shares of the company’s stock valued at $54,201,000 after buying an additional 3,035,196 shares during the last quarter. Emerald Acquisition Ltd. purchased a new position in shares of Genworth Financial during the second quarter valued at approximately $5,857,000. Finally, Vanguard Group Inc. boosted its position in shares of Genworth Financial by 6.0% in the second quarter. Vanguard Group Inc. now owns 36,006,431 shares of the company’s stock valued at $92,895,000 after buying an additional 2,028,101 shares during the last quarter. Institutional investors own 71.74% of the company’s stock.
About Genworth Financial
Genworth Financial, Inc (Genworth) is a financial security company. The Company provides insurance, wealth management, investment and financial solutions. As of December 31, 2011, the Company had more than 15 million customers, with a presence in more than 25 countries. The Company operates in Insurance, Mortgage Insurance and Corporate and Runoff.
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