Gen Digital Inc. (NASDAQ:GEN) Receives Average Rating of "Hold" from Analysts

Key Points

• Analyst sentiment is neutral: Nine brokerages give Gen Digital an average “Hold” rating, with a consensus 12-month price target of $31.67.
• Quarterly results exceeded expectations: Gen Digital reported $0.71 in earnings per share and $1.34 billion in revenue, surpassing estimates while revenue increased 6.3% year over year.
• The company maintains shareholder returns: Gen Digital declared a quarterly dividend of $0.125 per share, equal to a $0.50 annualized payout and a 1.6% yield; recent insider activity included both a significant director sale and a smaller director purchase.

Gen Digital Inc. (NASDAQ:GEN - Get Free Report) has been given an average recommendation of "Hold" by the nine brokerages that are covering the firm, Marketbeat reports. Seven investment analysts have rated the stock with a hold recommendation, one has issued a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month target price among analysts that have covered the stock in the last year is $31.6667.

Several equities analysts have recently commented on GEN shares. Barclays increased their price target on Gen Digital from $27.00 to $32.00 and gave the stock an "equal weight" rating in a research report on Friday, August 7th. Weiss Ratings upgraded Gen Digital from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, July 15th. Wells Fargo & Company upped their price objective on Gen Digital from $22.00 to $28.00 and gave the stock an "equal weight" rating in a research note on Friday, August 7th. Wall Street Zen lowered Gen Digital from a "buy" rating to a "hold" rating in a research report on Sunday, August 16th. Finally, Argus upgraded Gen Digital to a "strong-buy" rating in a research note on Friday, May 22nd.

Gen Digital Stock Performance

NASDAQ GEN opened at $31.02 on Monday. The company has a debt-to-equity ratio of 3.00, a quick ratio of 0.47 and a current ratio of 0.47. Gen Digital has a one year low of $17.78 and a one year high of $31.29. The company has a 50-day simple moving average of $27.06 and a 200-day simple moving average of $23.80. The firm has a market capitalization of $18.57 billion, a PE ratio of 18.03 and a beta of 1.21.

Gen Digital (NASDAQ:GEN - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.71 earnings per share for the quarter, topping the consensus estimate of $0.69 by $0.02. Gen Digital had a net margin of 20.73% and a return on equity of 55.93%. The firm had revenue of $1.34 billion for the quarter, compared to analyst estimates of $1.31 billion. During the same quarter in the prior year, the business earned $0.64 earnings per share. Gen Digital's quarterly revenue was up 6.3% on a year-over-year basis. Gen Digital has set its FY 2027 guidance at 2.870-2.970 EPS and its Q2 2027 guidance at 0.710-0.730 EPS. On average, equities analysts forecast that Gen Digital will post 2.64 earnings per share for the current year.

Gen Digital Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Monday, August 17th will be given a $0.125 dividend. The ex-dividend date is Monday, August 17th. This represents a $0.50 annualized dividend and a yield of 1.6%. Gen Digital's dividend payout ratio (DPR) is currently 29.07%.

Insider Activity at Gen Digital

In other Gen Digital news, Director Ondrej Vlcek sold 200,000 shares of the firm's stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $30.00, for a total value of $6,000,000.00. Following the sale, the director owned 3,332,904 shares in the company, valued at approximately $99,987,120. This trade represents a 5.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director John C. Chrystal purchased 3,000 shares of the business's stock in a transaction dated Thursday, June 4th. The shares were acquired at an average cost of $27.06 per share, for a total transaction of $81,180.00. Following the acquisition, the director owned 31,419 shares of the company's stock, valued at approximately $850,198.14. The trade was a 10.56% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have sold a total of 630,260 shares of company stock worth $17,967,726 in the last ninety days. 9.70% of the stock is owned by insiders.

Hedge Funds Weigh In On Gen Digital

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Larson Financial Group LLC raised its position in shares of Gen Digital by 20.9% during the 3rd quarter. Larson Financial Group LLC now owns 2,255 shares of the company's stock worth $64,000 after buying an additional 390 shares in the last quarter. Trust Co. of Vermont bought a new position in shares of Gen Digital in the second quarter valued at approximately $32,000. EverSource Wealth Advisors LLC increased its stake in shares of Gen Digital by 14.5% during the first quarter. EverSource Wealth Advisors LLC now owns 3,376 shares of the company's stock valued at $64,000 after acquiring an additional 427 shares during the period. Vident Advisory LLC increased its stake in shares of Gen Digital by 1.6% during the third quarter. Vident Advisory LLC now owns 26,906 shares of the company's stock valued at $764,000 after acquiring an additional 428 shares during the period. Finally, Fisher Asset Management LLC raised its holdings in Gen Digital by 5.9% during the fourth quarter. Fisher Asset Management LLC now owns 7,735 shares of the company's stock worth $210,000 after purchasing an additional 430 shares in the last quarter. 81.38% of the stock is owned by institutional investors.

About Gen Digital

Gen Digital NASDAQ: GEN is a global cybersecurity company specializing in consumer- and small-business-focused security, privacy, and identity protection solutions. The company offers a suite of products designed to safeguard devices, networks, and personal information against malware, ransomware, phishing attacks and other digital threats. With a focus on user-friendly interfaces and cross-platform compatibility, Gen Digital develops antivirus software, VPN services, parental controls, password management tools, and comprehensive identity-theft monitoring services.

Gen Digital traces its origins to the consumer software division of Symantec Corporation, which was spun off in late 2019 under the NortonLifeLock name.

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