Zacks Investment Research downgraded shares of Genworth Financial (NYSE:GNW) from a buy rating to a hold rating in a research note released on Tuesday morning.
According to Zacks, “Genworth has agreed to be acquired by China Oceanwide. The merger will consolidate Genworth’s financial position in the mortgage insurance and long-term care insurance markets. Also, it will remain committed toward its key financial priorities of strengthening the balance sheet and stabilizing and improving ratings over time, particularly in its U.S. MI business. It is intensifying focus on streamlining and rationalizing business to mainly improve performance and enhance financial and strategic flexibility. However, new products and pricing changes in the U.S. Life Insurance Division implemented over the past couple of years led to lower sales for Genworth. Shares of Genworth have underperformed the industry in a year’s time. With respect to quarterly results, Genworth’s fourth-quarter 2017 earnings outpaced the Zacks Consensus Estimate and also compared favorably with the year-ago quarter’s loss.”
Several other brokerages have also issued reports on GNW. ValuEngine lowered Genworth Financial from a buy rating to a hold rating in a research note on Sunday, December 31st. TheStreet raised Genworth Financial from a d+ rating to a c rating in a research note on Wednesday, February 7th. Wells Fargo & Co reaffirmed a hold rating on shares of Genworth Financial in a research note on Wednesday, November 29th. Finally, BTIG Research reaffirmed a hold rating on shares of Genworth Financial in a research note on Thursday, February 8th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and one has assigned a buy rating to the company. Genworth Financial presently has a consensus rating of Hold and an average target price of $3.50.
Genworth Financial (NYSE:GNW) last issued its quarterly earnings results on Tuesday, February 6th. The financial services provider reported $0.65 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.20 by $0.45. Genworth Financial had a return on equity of 4.63% and a net margin of 9.85%. The firm had revenue of $1.69 billion during the quarter, compared to analyst estimates of $2.16 billion. During the same quarter in the previous year, the company posted ($0.27) earnings per share. The company’s revenue was down 23.3% compared to the same quarter last year. sell-side analysts forecast that Genworth Financial will post 0.9 EPS for the current year.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in GNW. Crossmark Global Holdings Inc. bought a new stake in shares of Genworth Financial in the 3rd quarter valued at about $325,000. Prudential Financial Inc. lifted its stake in shares of Genworth Financial by 21.2% in the 3rd quarter. Prudential Financial Inc. now owns 6,637,723 shares of the financial services provider’s stock valued at $25,555,000 after acquiring an additional 1,162,720 shares during the last quarter. Los Angeles Capital Management & Equity Research Inc. lifted its stake in shares of Genworth Financial by 8.0% in the 3rd quarter. Los Angeles Capital Management & Equity Research Inc. now owns 1,356,804 shares of the financial services provider’s stock valued at $5,224,000 after acquiring an additional 100,280 shares during the last quarter. Russell Investments Group Ltd. lifted its stake in shares of Genworth Financial by 15.7% in the 3rd quarter. Russell Investments Group Ltd. now owns 517,554 shares of the financial services provider’s stock valued at $1,993,000 after acquiring an additional 70,134 shares during the last quarter. Finally, Commonwealth Equity Services Inc lifted its stake in shares of Genworth Financial by 54.2% in the 3rd quarter. Commonwealth Equity Services Inc now owns 73,215 shares of the financial services provider’s stock valued at $281,000 after acquiring an additional 25,746 shares during the last quarter. 66.24% of the stock is owned by institutional investors.
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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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