Franklin Resources Inc. Trims Position in Gen Digital Inc. $GEN

Key Points

• Franklin Resources cut its Gen Digital stake by 5.1% in the fourth quarter, selling 434,169 shares and leaving it with 8.02 million shares worth about $218.1 million.
• Gen Digital’s latest earnings topped expectations, with quarterly EPS of $0.67 versus $0.65 expected and revenue of $1.28 billion, up 27% year over year.
• Analyst sentiment remains mixed, with a consensus rating of Hold and a consensus price target of $31.29, even as some firms recently upgraded or raised targets on the stock.

Franklin Resources Inc. cut its holdings in shares of Gen Digital Inc. (NASDAQ:GEN - Free Report) by 5.1% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 8,020,760 shares of the company's stock after selling 434,169 shares during the quarter. Franklin Resources Inc. owned 1.32% of Gen Digital worth $218,084,000 at the end of the most recent reporting period.

A number of other institutional investors also recently bought and sold shares of GEN. Goldman Sachs Group Inc. grew its stake in shares of Gen Digital by 1.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,703,712 shares of the company's stock worth $71,757,000 after purchasing an additional 28,522 shares during the period. Great Lakes Advisors LLC acquired a new stake in shares of Gen Digital during the 1st quarter worth approximately $205,000. Woodline Partners LP grew its stake in shares of Gen Digital by 37.8% during the 1st quarter. Woodline Partners LP now owns 27,590 shares of the company's stock worth $732,000 after purchasing an additional 7,562 shares during the period. Focus Partners Wealth grew its stake in shares of Gen Digital by 9.7% during the 1st quarter. Focus Partners Wealth now owns 22,347 shares of the company's stock worth $593,000 after purchasing an additional 1,980 shares during the period. Finally, Geneos Wealth Management Inc. grew its stake in shares of Gen Digital by 221.5% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,717 shares of the company's stock worth $46,000 after purchasing an additional 1,183 shares during the period. 81.38% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Gen Digital

In related news, Director John C. Chrystal purchased 3,000 shares of the company's stock in a transaction that occurred on Thursday, June 4th. The shares were purchased at an average price of $27.06 per share, with a total value of $81,180.00. Following the purchase, the director owned 31,419 shares of the company's stock, valued at $850,198.14. The trade was a 10.56% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 9.30% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have recently commented on GEN. Argus raised shares of Gen Digital to a "strong-buy" rating in a research note on Friday, May 22nd. Barclays raised their price objective on shares of Gen Digital from $26.00 to $27.00 and gave the stock an "equal weight" rating in a research note on Friday, May 8th. Wall Street Zen raised shares of Gen Digital from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Royal Bank Of Canada raised their price objective on shares of Gen Digital from $22.00 to $24.00 and gave the stock a "sector perform" rating in a research note on Friday, May 8th. Finally, Jefferies Financial Group cut shares of Gen Digital from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 27th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $31.29.

Gen Digital Price Performance

Gen Digital stock opened at $24.97 on Wednesday. The company's fifty day moving average price is $21.79 and its 200 day moving average price is $23.62. Gen Digital Inc. has a 1 year low of $17.78 and a 1 year high of $32.22. The stock has a market capitalization of $15.04 billion, a P/E ratio of 15.80 and a beta of 1.21. The company has a debt-to-equity ratio of 3.07, a quick ratio of 0.40 and a current ratio of 0.40.

Gen Digital (NASDAQ:GEN - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.67 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.65 by $0.02. Gen Digital had a net margin of 19.46% and a return on equity of 55.47%. The firm had revenue of $1.28 billion for the quarter, compared to analysts' expectations of $1.25 billion. During the same quarter last year, the company earned $0.59 EPS. The firm's revenue for the quarter was up 27.0% compared to the same quarter last year. Gen Digital has set its Q1 2027 guidance at 0.680-0.700 EPS and its FY 2027 guidance at 2.850-2.950 EPS. As a group, equities research analysts anticipate that Gen Digital Inc. will post 2.59 earnings per share for the current fiscal year.

Gen Digital Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Monday, May 18th will be paid a $0.125 dividend. The ex-dividend date of this dividend is Monday, May 18th. This represents a $0.50 dividend on an annualized basis and a yield of 2.0%. Gen Digital's dividend payout ratio (DPR) is currently 31.65%.

Gen Digital Profile

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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