Zacks Downgrades Genworth Financial to Underperform (GNW)
Genworth Financial (NYSE:GNW) was downgraded by Zacks from a “neutral” rating to an “underperform” rating in a report released on Friday. They currently have a $13.00 target price on the stock. Zacks‘s price objective indicates a potential downside of 7.21% from the stock’s previous close.
Zacks’ analyst wrote, “We are downgrading Genworth to Underperform from Neutral given its second-quarter earnings miss. However, the results fared well over the prior-year quarter courtesy of an improvement in top line and reduction in expenses. Genworth’s mortgage insurance businesses gave solid performances thanks to an improved loss ratio. Long-term care operating performance was weaker than expected. The claims paid exceeded claim reserve releases in the quarter, thus weighing on earnings. Nonetheless, delinquencies also declined from the year-ago level. It expects delinquencies in 2014 to remain flat with the 2013 level. Moreover, a new credit line and redemption of 2015 notes along with an increase in cash balance enhanced Genworth’s financial position. Genworth aims for a leverage of 20% to 22% over the medium term. It expects the U.S. life insurance division earnings to increase 5-10% over 2013. “
Shares of Genworth Financial (NYSE:GNW) traded down 1.11% on Friday, hitting $13.855. The stock had a trading volume of 2,246,806 shares. Genworth Financial has a 52 week low of $11.55 and a 52 week high of $18.74. The stock has a 50-day moving average of $15.03 and a 200-day moving average of $16.50. The company has a market cap of $6.881 billion and a price-to-earnings ratio of 10.35. Genworth Financial also was the target of some unusual options trading on Tuesday. Traders acquired 8,050 put options on the company. This represents an increase of 183% compared to the typical volume of 2,847 put options.
Genworth Financial (NYSE:GNW) last announced its earnings results on Tuesday, July 29th. The company reported $0.35 earnings per share for the quarter, meeting the analysts’ consensus estimate of $0.35. The company had revenue of $2.42 billion for the quarter, compared to the consensus estimate of $2.36 billion. During the same quarter last year, the company posted $0.28 earnings per share. Genworth Financial’s revenue was up 1.9% compared to the same quarter last year. On average, analysts predict that Genworth Financial will post $1.29 earnings per share for the current fiscal year.
GNW has been the subject of a number of other recent research reports. Analysts at Morgan Stanley upgraded shares of Genworth Financial from an “underweight” rating to an “equal weight” rating in a research note on Monday, August 11th. Separately, analysts at Compass Point reiterated a “focus list” rating on shares of Genworth Financial in a research note on Thursday, July 31st. They now have a $16.50 price target on the stock, down previously from $23.00. One analyst has rated the stock with a sell rating, three have issued a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the company. The company has an average rating of “Hold” and a consensus price target of $16.57.
Genworth Financial, Inc (NYSE:GNW) is a financial security company.
To view Zacks’ full report, visit Zacks’ official website.
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