Genworth Financial Inc. (NYSE:GNW) President and CEO Thomas J. McInerney recently sold a significant portion of his holdings in the company, according to a new SEC filing. The transactions, which took place on May 24, 2024, involved the sale of 200,000 shares of Class A Common Stock at a weighted average price of $6.274 per share, resulting in a total value of over $1.25 million.
The reported sales price ranged from $6.25 to $6.335 per share, as detailed in the footnotes of the filing, indicating a series of broker-assisted transactions. McInerney, who also serves as a director, still retains a substantial stake in the company, with 4,361,980 shares following the sale.
In a separate transaction on May 28, 2024, the SEC filing also disclosed a gift of 150,000 shares to a charitable organization, which did not contribute to the total sales value.
These recent transactions come after a notable event last year when McInerney contributed 979,964 shares to a grantor retained annuity trust (GRAT), as mentioned in the footnotes. This contribution was previously reported and represents a strategy often used in estate planning to minimize taxes on large financial gifts.
Investors often keep a close eye on insider transactions as they can provide insights into executives' perspectives on the company's future performance. Shares of Genworth Financial closed at $6.27 on the day of the reported sale.
InvestingPro Insights
Following the news of Genworth Financial Inc. (NYSE:GNW) President and CEO Thomas J. McInerney's recent stock transactions, investors may find additional context in the company's financial metrics and market performance. According to InvestingPro data, Genworth Financial has a market capitalization of $2.74 billion and is trading at a price-to-earnings (P/E) ratio of 30.37, which is slightly lower than the adjusted P/E ratio for the last twelve months as of Q1 2024, standing at 30.07.
Despite a modest revenue growth of 0.55% during the last twelve months as of Q1 2024, Genworth Financial's gross profit margins appear to be under pressure at 5.87%. This could be a point of concern for investors, aligning with one of the InvestingPro Tips that highlights the company's weak gross profit margins. However, it is worth noting that Genworth's price-to-book (P/B) ratio is quite low at 0.34, suggesting that the stock may be undervalued relative to its book value, which is also supported by another InvestingPro Tip.
For a deeper analysis of Genworth Financial's potential and to explore additional insights, investors can refer to InvestingPro, which offers several more tips on the company. For instance, management's aggressive share buyback strategy and the expectation that net income will grow this year are promising indicators. Moreover, Genworth's liquid assets exceeding short-term obligations and analysts' predictions of profitability this year add to the positive outlook.
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