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Unusual Purchase Of Options Of Genworth Financial Inc (NYSE:GNW)

Boston, MA 10/16/2013 (wallstreetpr) – On Friday, October 14, 2013, saw an unusual buying trend in the share market. Around 8k call options of Genworth Financial Inc (NYSE:GNW) had been bought by investors in place of the usual 3.3k options, as reported by StockRatingsNetwork.com.

Coverage of shares of the company

Recent reports suggest that trade analysts at the BTIG research company have found a special interest in Genworth and have upgraded rating from ‘neutral’ to ‘buy’, with relevance to the shares of the company on October 8. They have fixed a target price of $17.50. On Tuesday, October 15, 2013, the share market experienced a dynamic graph pattern of the share price o this company. The market opened at $13.05, raised up to $13.30 before gradually coming down and closing at $12.94. This may have been due to the purchase of several Call Options of Genworth.

Genworth adds value to lenders by introducing alternate schemes

The government has introduced the ‘Help to buy’ scheme for lenders that in turn has created a lot of competition among all lenders to introduce better schemes for their customers. Simon Crone, Genworth Mortgage Insurance Europe commercial vice-president, stated that after this move of the government, all consumers now expect all lenders to offer higher value to the lending loans (Loan-To-Value ratio). Genworth Financial is happy with the introduction of the ‘Help To Buy’ as it has in turn catalyzed to company to come up with tailored mortgage insurance solutions.

Crone is optimistic that under the circumstances, private insurers are happy with the company as it will be providing additional value add-ons like higher lending cap, administration support, premium options and individual underwriting.

Positive forecast for stock performance

Most analysts at BTIG have given a thumbs-up to buy and they are certainly right as the operational costs of the company may boost the growth and the working profit margins of the company and this will be reflected in the results of the next quarter, due to be released at the end of day of October 29, 2013.

Published by Steve Hackney

Steve Hackney is a corporate finance professional with over 14 years of experience in cash management and investing. He earned a Bachelor of Science in Finance from Florida State University and holds a Certified Treasury Professional certification. Steve lives in Orlando, Florida with his family.



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