Genworth Financial Inc (GNW) share lost 2.80% on Tuesday, April 27, 2021, to close at $3.82 per share. But it rebounded in the premarket session and gained 3.93% to close at $3.97 per share.
GNW shares have risen by 14.37% over the last 12 months, and they have moved up by 4.37% in the past week. Over the past three months, the stock has gained 21.27%, while over the past six months, it has added only 0.79%.
Let’s try to find out the reason behind its flip on Tuesday.
Inauguration on S&P SmallCap 600
On April 27, 2021, S&P Dow Jones announced that Genworth Financial will replace Glu Mobile Inc. (NASD: GLUU) in the S&P SmallCap 600, effective before the opening of trading on Monday, May 3.
Filing registration statement for proposed IPO
On April 19, 2021, Genworth Mortgage Holdings Inc which is a wholly-owned subsidiary of Genworth Financial, filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (the SEC) for the proposed initial public offering of its common stock.
Upcoming Financial Results announcement
On April 15, 2021, Genworth Financial said that it would release first-quarter results after the market closes on April 29, 2021.
Merger agreement termination with oceanwide
on April 6, 2021, Genworth Financial, Inc. terminated its merger agreement with China Oceanwide Holdings Group Company Ltd.
Genworth now can pursue its revised strategic plan without any restrictions and uncertainty.
Three New Independent Directors
On March 25, 2021, Genworth Financial, Inc announced the election of three new independent directors to its Board of Directors: Jill R. Goodman, Managing Director at Foros Advisors LLC; Howard D. Mills, III, former Superintendent of the New York Insurance Department; and Ramsey Smith, Founder, and CEO of ALEX.fyi.
Recent financial results
On February 16, 2021, Genworth Financial reported financial results for the quarter ended December 31, 2020.
Q4 2020 financial highlights
- Q4 2020 net income was $267 million, or $0.52 per diluted share compared with a net loss of $17 million, or $0.03 per diluted share, in the fourth quarter of 2019.
- Q4 2020 adjusted operating income was $173 million, or $0.34 per diluted share compared with adjusted operating income of $24 million, or $0.05 per diluted share, in Q4 2019.
FY 2020 financial highlights
- FY 2020 net income was $178 million, or $0.35 per diluted share compared with net income of $343 million, or $0.67 per diluted share, in FY 2019.
- FY 2020 adjusted operating income was $317 million, or $0.62 per diluted share compared with adjusted operating income of $420 million, or $0.82 per diluted share, in FY 2019.
Well, there is no such solid news to justify its turnaround on Tuesday. Investors may be betting on positive financial numbers in the upcoming financial results on April 29, which can increase its price in the coming days.