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TheStreet Open House

Why Voya Financial (VOYA) Stock Is Down Today

Stock quotes in this article: VOYA

NEW YORK (TheStreet) -- Voya Financial (VOYA) was falling -0.4% to $39.20 Wednesday after announcing the outcome of a secondary common stock offering by ING Group (ING) .

ING agreed to sell a total of 22,277,993 of its shares of Voya Financial for $38.85 a share in the offering. Voya Financial will repurchase an additional 7,722,007 shares, for an aggregate price of about $300 million. ING will sell a total of 30 million shares Voya Financial, bringing its stake in the company down to about 32% after the transactions close.

Voya Financial will not receive any proceeds from the offering as it is not issuing or selling any stock.

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TheStreet Ratings team rates VOYA FINANCIAL INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate VOYA FINANCIAL INC (VOYA) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 11.3%. Since the same quarter one year prior, revenues rose by 26.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 400.00% and other important driving factors, this stock has surged by 33.56% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • VOYA's debt-to-equity ratio of 0.64 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further.
  • The gross profit margin for VOYA FINANCIAL INC is rather low; currently it is at 19.12%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 9.12% trails the industry average.
  • Net operating cash flow has decreased to $1,030.80 million or 21.80% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • You can view the full analysis from the report here: VOYA Ratings Report

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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