B. Riley Analysts Lower Earnings Estimates for Gen Digital

Key Points

• B. Riley analysts have lowered their Q2 2026 earnings estimate for Gen Digital from $0.58 to $0.55 per share, while maintaining a "Buy" rating and a price target of $46.00.
• The company reported a 30.3% year-over-year increase in revenue, totaling $1.26 billion, and achieved earnings of $0.64 per share for the previous quarter.
• Gen Digital announced a quarterly dividend of $0.125 per share, with a dividend yield of 1.7% and a payout ratio of 51.55%.

Gen Digital Inc. (NASDAQ:GEN - Free Report) - Equities researchers at B. Riley dropped their Q2 2026 earnings per share (EPS) estimates for shares of Gen Digital in a report released on Tuesday, September 9th. B. Riley analyst H. Goetsch now expects that the company will post earnings per share of $0.55 for the quarter, down from their prior forecast of $0.58. B. Riley has a "Buy" rating and a $46.00 price target on the stock. The consensus estimate for Gen Digital's current full-year earnings is $2.05 per share. B. Riley also issued estimates for Gen Digital's Q3 2026 earnings at $0.58 EPS, Q4 2026 earnings at $0.62 EPS, FY2026 earnings at $2.30 EPS and FY2027 earnings at $2.75 EPS.

Gen Digital (NASDAQ:GEN - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported $0.64 earnings per share for the quarter, beating analysts' consensus estimates of $0.60 by $0.04. Gen Digital had a return on equity of 57.99% and a net margin of 14.12%.The business had revenue of $1.26 billion for the quarter, compared to analyst estimates of $1.19 billion. During the same period in the prior year, the company earned $0.53 earnings per share. The company's revenue was up 30.3% on a year-over-year basis. Gen Digital has set its Q2 2026 guidance at 0.600-0.620 EPS. FY 2026 guidance at 2.490-2.560 EPS.

Several other analysts have also recently commented on the stock. Evercore ISI assumed coverage on shares of Gen Digital in a research note on Tuesday, July 1st. They set an "outperform" rating and a $35.00 price objective for the company. Wells Fargo & Company raised their target price on shares of Gen Digital from $37.00 to $40.00 and gave the stock an "overweight" rating in a report on Friday, August 8th. Barclays upped their price target on shares of Gen Digital from $32.00 to $33.00 and gave the company an "equal weight" rating in a report on Friday, August 8th. Morgan Stanley lifted their price objective on Gen Digital from $25.00 to $32.00 and gave the company an "equal weight" rating in a research note on Tuesday, September 2nd. Finally, Wall Street Zen cut Gen Digital from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 5th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, Gen Digital currently has an average rating of "Moderate Buy" and a consensus price target of $36.50.

Gen Digital Price Performance

Shares of NASDAQ GEN opened at $29.67 on Friday. Gen Digital has a 52 week low of $22.74 and a 52 week high of $32.22. The business's 50 day moving average price is $30.21 and its 200 day moving average price is $28.34. The company has a quick ratio of 0.50, a current ratio of 0.50 and a debt-to-equity ratio of 3.63. The firm has a market cap of $18.27 billion, a P/E ratio of 30.59, a P/E/G ratio of 0.98 and a beta of 0.99.

Institutional Investors Weigh In On Gen Digital

Institutional investors have recently modified their holdings of the business. Allspring Global Investments Holdings LLC raised its holdings in Gen Digital by 132.2% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 599,821 shares of the company's stock worth $16,039,000 after purchasing an additional 341,533 shares during the period. Mather Group LLC. increased its position in shares of Gen Digital by 26.6% in the first quarter. Mather Group LLC. now owns 3,730 shares of the company's stock valued at $99,000 after buying an additional 783 shares in the last quarter. Cornerstone Wealth Group LLC acquired a new position in shares of Gen Digital during the 1st quarter worth approximately $377,000. Wellington Management Group LLP lifted its position in shares of Gen Digital by 98.8% during the 4th quarter. Wellington Management Group LLP now owns 114,699 shares of the company's stock valued at $3,140,000 after buying an additional 56,993 shares in the last quarter. Finally, Exchange Traded Concepts LLC lifted its position in shares of Gen Digital by 52.4% during the 1st quarter. Exchange Traded Concepts LLC now owns 11,146 shares of the company's stock valued at $296,000 after buying an additional 3,830 shares in the last quarter. 81.38% of the stock is currently owned by institutional investors and hedge funds.

Gen Digital Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 10th. Stockholders of record on Monday, August 18th were paid a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend was Monday, August 18th. Gen Digital's dividend payout ratio is presently 51.55%.

Gen Digital Company Profile

Gen Digital Inc engages in the provision of cyber safety solutions for consumers in the United States, Canada, Latin America, Europe, the Middle East, Africa, the Asia Pacific, and Japan. The company offers security and performance products under Norton, Avast, Avira, AVG, and CCleaner brands that provide real-time protection and maintenance for PCs, Macs, and mobile devices against malware, viruses, adware, and other online threats.

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