Gen Digital Inc. (NASDAQ:GEN) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Gen Digital Inc. has received a consensus recommendation of "Moderate Buy" from seven research firms, with an average 12-month price target of $36.50.
• The company reported a 30.3% year-over-year revenue increase to $1.26 billion and an earnings per share (EPS) of $0.64, surpassing the consensus estimate by $0.04.
• Gen Digital announced a quarterly dividend of $0.125 per share, representing a 1.7% dividend yield and a payout ratio of 51.55%.

Gen Digital Inc. (NASDAQ:GEN - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the seven research firms that are presently covering the company, Marketbeat reports. Three research analysts have rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the company. The average 12 month price objective among brokerages that have updated their coverage on the stock in the last year is $36.50.

Several equities analysts have issued reports on the company. B. Riley started coverage on Gen Digital in a report on Monday, July 14th. They set a "buy" rating and a $46.00 price objective on the stock. Evercore ISI assumed coverage on Gen Digital in a research report on Tuesday, July 1st. They set an "outperform" rating and a $35.00 price target on the stock. Morgan Stanley boosted 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. 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 research report on Friday, August 8th. Finally, Royal Bank Of Canada upped their price target on shares of Gen Digital from $32.00 to $33.00 and gave the company a "sector perform" rating in a research report on Friday, August 8th.

Gen Digital Stock Performance

Shares of Gen Digital stock opened at $29.14 on Friday. The company has a quick ratio of 0.50, a current ratio of 0.50 and a debt-to-equity ratio of 3.63. Gen Digital has a 52 week low of $22.74 and a 52 week high of $32.22. The firm's 50 day moving average is $30.18 and its two-hundred day moving average is $28.35. The firm has a market capitalization of $17.95 billion, a P/E ratio of 30.04, a P/E/G ratio of 1.00 and a beta of 0.99.

Gen Digital (NASDAQ:GEN - Get Free Report) last issued its earnings results on Thursday, August 7th. The company reported $0.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.60 by $0.04. Gen Digital had a net margin of 14.12% and a return on equity of 57.99%. The business had revenue of $1.26 billion during the quarter, compared to analysts' expectations of $1.19 billion. During the same quarter in the prior year, the business posted $0.53 EPS. The company's revenue for the quarter 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. Research analysts forecast that Gen Digital will post 2.05 EPS for the current fiscal year.

Gen Digital Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 10th. Stockholders of record on Monday, August 18th were issued a $0.125 dividend. This represents a $0.50 dividend on an annualized basis 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%.

Hedge Funds Weigh In On Gen Digital

Institutional investors have recently added to or reduced their stakes in the stock. Cullen Frost Bankers Inc. acquired a new stake in Gen Digital during the 2nd quarter worth approximately $32,000. Catalyst Capital Advisors LLC raised its stake in shares of Gen Digital by 117.6% during the first quarter. Catalyst Capital Advisors LLC now owns 1,580 shares of the company's stock worth $42,000 after purchasing an additional 854 shares during the last quarter. CYBER HORNET ETFs LLC acquired a new stake in shares of Gen Digital during the second quarter worth $44,000. Geneos Wealth Management Inc. grew its position in Gen Digital by 221.5% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,717 shares of the company's stock valued at $46,000 after buying an additional 1,183 shares during the last quarter. Finally, MUFG Securities EMEA plc purchased a new position in Gen Digital in the 2nd quarter valued at $47,000. Institutional investors and hedge funds own 81.38% of the company's stock.

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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