Shares of Genworth Financial sank 73 cents, or 8.3 percent, to $8.02 in afternoon trading. The stock has ranged from 70 cents to $19.99 over the past year.

In a note to clients, Colin Devine said the Richmond, Va.-based insurer's shares are at a level "which is no longer attractive," given the uncertain earnings outlook and capital position.

He cut his rating on the stock to "Sell" from "Hold," but raised his target price by $2 to $6. Devine also lowered his 2009 earnings estimate from $1 to 20 cents. Analysts surveyed by Thomson Reuters expect a profit of 42 cents per share, on average.

"Genworth's financial outlook is far from clear even though near-term liquidity has been addressed with no scheduled debt maturities due until 2011," Devine wrote. "The risk of further earnings shortfalls is high."

Last month, Genworth reported worse-than-expected second-quarter results as it was hit by losses in its U.S. mortgage insurance division and investment portfolio.

The company noted that it continues to strengthen its capital position. Genworth generated $705 million in cash as it completed an initial public offering for a minority stake in its Canadian mortgage insurance business. That extra cash further pads reserves, which exceed the company's target requirements by $2.3 billion.

The insurer also did say it has paid off all upcoming debt maturities for 2009 and has no outstanding debt due until the middle of 2011.

Liquidity pressure has stung other financial firms in recent months as they face upcoming debt maturities in a time when credit markets haven't fully recovered from their near collapse last fall.

Earlier in the year, investors were concerned insurers and some other financial firms might not be able to survive because mounting investment losses would cripple cash reserves. Genworth shares dropped below $1 amid investors' broader concerns about liquidity problems at insurers, but have moved sharply higher as confidence returned to the sector.

A service of YellowBrix, Inc.