Are These Stocks Nearing A Big Breakout? – Genworth Financial Inc. (GNW), Yamana Gold Inc. (AUY)

Genworth Financial Inc. (NYSE: GNW) shares are -22.95% down in the year-to-date (YTD) period and have moved -6.61% or -$0.24 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +18.12% lower. Comparatively, the stock is -29.96% down YTD and -17.32% over the trailing 3-month period. If we look at the shorter duration, its week performance is 2.73% and 11.15% over the month.

Analyst Recommendations

On May 05, 2016, Compass Point recommended the GNW stock is a Buy, while earlier, Wells Fargo had Resumed the stock as a Market Perform on September 23, 2016. 3 analysts offering the recommendations for the stock have a consensus rating of 3.00 to suggest that the GNW stock is a “Hold. 0 of the 3 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 0 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $3.39 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $4.00. The forecasts give the Genworth Financial Inc. stock a price target range of $4.00 on the higher side while at least one analyst think the stock could plunge to a low of $4.00. The two limits represent an upside potential of 15.25% or 15.25%.

Earnings Forecast

Analysts estimate the earnings to decrease -113.60% in the current quarter to $0.17, down from the $0.34 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.56, down -2.50% from $0.67 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.1 and $0.21. Wall Street estimates earnings per share to be at an average of $0.69 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 11 over the last 12 months, while SEC filings reveal that there have been 11 insider sales over the same period. Insiders have purchases 2,527,003 shares while those sold by company executives and officers stand at 984,277. The last 3 months have seen insiders trade a total of 2,280,669 and 873,180 in purchases and sales respectively.

Yamana Gold Inc. (NYSE:AUY), on the other hand, is trading around $4.87 with a market cap of $4.63B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $3.86 and spell out a less modest performance – a -26.17% return. Some analysts are even forecasting $0.05 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Yamana Gold Inc. (AUY) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

AUY’s operating margin was positive on the trailing 12 months basis, remaining steady at 27.20%, while the operating expenses over the recent quarter were at $114.8 million. This represented a 67.8% of the company’s total revenues which amounted $356.5 million. With this in place, we can see that the company’s diluted EPS inclined $0.05 on the year-over-year period, shrinking to $0.00 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Dec 2017), the total assets figure advanced to $7.26 billion from $7.12 billion over the previous quarter. Short term investments amounted to $4.8 million while total current assets were at $635.7 million. The cash flow from operating activities totaled $129.4 million, significantly higher than the $12.4 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $62.4 million.

Major holders

Insiders own 0.20% of the company shares, while shares held by institutions stand at 60.70% with a share float percentage of 949.09M. The top two institutional holders are Van Eck Associates Corporation with over 123.53 million shares worth more than $487.96 million. As of Dec 30, 2019, Van Eck Associates Corporation held 12.98% of shares outstanding.

The other major institutional holder is Renaissance Technologies, LLC, with the investment firm holding over 31.45 million shares as of Dec 30, 2019. The firm’s total holdings are worth over $124.24 million and represent 3.31% of shares outstanding.