Gen Digital Inc. $GEN Stock: TD Waterhouse Canada Inc. Cuts Holdings

Key Points

• TD Waterhouse Canada cut its Gen Digital position by 74% in the third quarter, selling 197,570 shares and retaining 69,377 shares valued at approximately $1.56 million. Institutional investors collectively own 81.38% of GEN.
• Analyst sentiment remains cautious, with the stock carrying an average “Hold” rating and a consensus price target of $30.25, despite some analysts raising their targets.
• Gen Digital reported quarterly revenue of $1.34 billion and adjusted earnings of $0.71 per share, exceeding estimates, while revenue grew 6.3% year over year. The company also maintains a $0.50 annual dividend, yielding about 2.1%.

TD Waterhouse Canada Inc. lowered its position in shares of Gen Digital Inc. (NASDAQ:GEN - Free Report) by 74.0% in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 69,377 shares of the company's stock after selling 197,570 shares during the period. TD Waterhouse Canada Inc.'s holdings in Gen Digital were worth $1,558,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also recently made changes to their positions in GEN. EverSource Wealth Advisors LLC increased its stake in Gen Digital by 14.5% during the first quarter. EverSource Wealth Advisors LLC now owns 3,376 shares of the company's stock worth $64,000 after acquiring an additional 427 shares during the last quarter. IFM Investors Pty Ltd lifted its stake in shares of Gen Digital by 0.4% in the 1st quarter. IFM Investors Pty Ltd now owns 141,142 shares of the company's stock valued at $2,658,000 after purchasing an additional 555 shares during the last quarter. Cookson Peirce & Co. Inc. lifted its stake in shares of Gen Digital by 5.1% in the 2nd quarter. Cookson Peirce & Co. Inc. now owns 12,231 shares of the company's stock valued at $304,000 after purchasing an additional 591 shares during the last quarter. Empirical Finance LLC lifted its stake in shares of Gen Digital by 3.4% in the 2nd quarter. Empirical Finance LLC now owns 20,252 shares of the company's stock valued at $504,000 after purchasing an additional 659 shares during the last quarter. Finally, D.A. Davidson & CO. grew its holdings in shares of Gen Digital by 5.1% during the 1st quarter. D.A. Davidson & CO. now owns 14,100 shares of the company's stock worth $266,000 after purchasing an additional 679 shares during the period. Hedge funds and other institutional investors own 81.38% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on GEN shares. Wall Street Zen downgraded Gen Digital from a "buy" rating to a "hold" rating in a research report on Sunday, August 16th. Royal Bank Of Canada decreased their target price on shares of Gen Digital from $26.00 to $24.00 and set a "sector perform" rating on the stock in a research report on Monday, October 12th. Wells Fargo & Company upped their target price on shares of Gen Digital from $22.00 to $28.00 and gave the company an "equal weight" rating in a research report on Friday, August 7th. Weiss Ratings raised shares of Gen Digital from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, October 16th. Finally, Barclays lifted their price target on shares of Gen Digital from $27.00 to $32.00 and gave the company an "equal weight" rating in a research report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $30.25.

Gen Digital Stock Performance

Shares of GEN stock opened at $24.12 on Thursday. Gen Digital Inc. has a 52 week low of $17.78 and a 52 week high of $31.65. The stock has a market capitalization of $14.44 billion, a PE ratio of 14.02, a P/E/G ratio of 0.76 and a beta of 1.26. The company has a quick ratio of 0.47, a current ratio of 0.47 and a debt-to-equity ratio of 3.00. The firm has a 50 day moving average of $26.89 and a two-hundred day moving average of $25.06.

Gen Digital (NASDAQ:GEN - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.71 EPS for the quarter, beating analysts' consensus estimates of $0.69 by $0.02. Gen Digital had a net margin of 20.73% and a return on equity of 55.93%. The company had revenue of $1.34 billion for the quarter, compared to the consensus estimate of $1.31 billion. During the same period in the prior year, the firm posted $0.64 EPS. The company's quarterly revenue was up 6.3% compared to the same quarter last year. 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, research analysts predict that Gen Digital Inc. will post 2.66 EPS for the current fiscal year.

Gen Digital Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 9th. Shareholders of record on Monday, August 17th were paid a $0.1250 dividend. The ex-dividend date was Monday, August 17th. This represents a $0.50 dividend on an annualized basis and a yield of 2.1%. Gen Digital's payout ratio is currently 29.07%.

Insider Buying and Selling at Gen Digital

In other news, Director Ondrej Vlcek sold 200,000 shares of the stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $30.00, for a total value of $6,000,000.00. Following the completion of the sale, the director directly owned 3,332,904 shares of the company's stock, valued at approximately $99,987,120. This represents a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Bryan Seuk Ko sold 28,248 shares of the stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $30.67, for a total value of $866,366.16. Following the completion of the sale, the chief operating officer directly owned 744,262 shares of the company's stock, valued at $22,826,515.54. The trade was a 3.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 558,508 shares of company stock worth $16,356,093. 9.70% of the stock is owned by insiders.

About Gen Digital

Gen Digital Inc NASDAQ: GEN is a cybersecurity company that provides digital safety, privacy, and identity protection products for consumers. Its services are designed to help protect devices, personal information, online accounts, and digital identities from malware, fraud, identity theft, scams, and other cyber threats.

The company operates a portfolio of consumer brands that includes Norton, Avast, LifeLock, Avira, AVG, ReputationDefender, and CCleaner. Its offerings include antivirus and device security software, virtual private network services, password management, identity theft monitoring and restoration support, privacy tools, scam protection, and performance and optimization utilities.

Gen Digital serves customers internationally through direct subscriptions and distribution partnerships.

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