Insights

Genworth (ASX:GMA) share price leaps 6% on share buyback news

The company’s shares are rebounding after two days of consecutive losses.
The post Genworth (ASX:GMA) share price leaps 6% on share buyback news appeared first on The Motley Fool Australia. –

The Genworth Mortgage Insurance Australia Ltd (ASX: GMA) share price is pushing higher in late afternoon trade. The mortgage insurance company released an announcement regarding an on-market share buyback.

At the time of writing, Genworth shares are swapping hands for $2.32, up 6.42%.

Genworth set to commence share buy back

In today’s statement, Genworth advised it intends to begin an on-market share buyback from 8 December. The maximum value the company is willing to spend on taking a portion of shares off the market is $100 million.

Based on Genworth’s closing share price of $2.18 yesterday, this buyback would represent 11.1% of the total issued capital. This equates to roughly 45.9 million shares.

The company noted that, depending on business and market conditions, the number of shares to be purchased may change. However, the buyback will not exceed more than 10% of Genworth ordinary shares without shareholder approval.

The reason for the buyback is that the board is trying to bring Genworth’s solvency ratio within a target capital range of 1.32 to 1.44 times the Prescribed Capital Amount (PCA) on a Level 2 basis.

Genworth CEO and managing director Pauline Blight‐Johnston said:

The on‐market share buyback is consistent with Genworth ensuring we have an efficient capital structure and helps us to deliver improved returns to our shareholders.

Genworth share price snapshot

It’s been a disappointing 12 months for Genworth shares, falling 2% in that time. Year-to-date, its shares are hovering 3% below for the last 11 months.

Based on today’s price, Genworth commands a market capitalisation of about $952.91 million and has approximately 412.51 million shares outstanding.

The post Genworth (ASX:GMA) share price leaps 6% on share buyback news appeared first on The Motley Fool Australia.

Should you invest $1,000 in Genworth right now?

Before you consider Genworth, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Genworth wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The DigitalX share price has tumbled 30% in 8 days. What’s happening?

Here’s why this fund manager sold its Star Entertainment (ASX:SGR) shares

Here’s why the Magnis (ASX:MNS) share price is rocketing 21% today

European Lithium (ASX:EUR) share price sinks after listing in US

Here’s why the Atomos (ASX:AMS) share price is sinking 8% today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!