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

Key Points

• Analysts are cautious on Gen Digital: The stock has an average rating of “Hold” from 10 analysts, with seven holds, two buys, and one strong buy. The average 1-year price target is about $31.29.
• Recent results topped expectations: Gen Digital reported $0.67 EPS versus the $0.65 consensus estimate and $1.28 billion in revenue versus $1.25 billion expected. Revenue rose 27% year over year, and the company also issued FY 2027 guidance.
• Dividend and insider activity were notable: The company paid a quarterly dividend of $0.125 per share, or $0.50 annually, for a 2.0% yield. Insider trading was mixed, with one director buying shares and another selling 100,000 shares.

Gen Digital Inc. (NASDAQ:GEN - Get Free Report) has received an average recommendation of "Hold" from the ten analysts that are presently covering the company, MarketBeat reports. Seven equities research analysts have rated the stock with a hold rating, two have issued a buy rating and one has given a strong buy rating to the company. The average 1-year price objective among analysts that have issued ratings on the stock in the last year is $31.2857.

A number of research analysts have recently commented on GEN shares. Argus raised Gen Digital to a "strong-buy" rating in a research report on Friday, May 22nd. Jefferies Financial Group cut Gen Digital from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 27th. Barclays upped their price target on Gen Digital from $26.00 to $27.00 and gave the company an "equal weight" rating in a research report on Friday, May 8th. Wells Fargo & Company started coverage on Gen Digital in a research report on Tuesday, March 3rd. They set an "equal weight" rating and a $22.00 price target on the stock. Finally, Wall Street Zen raised Gen Digital from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th.

Gen Digital Stock Up 0.4%

Shares of NASDAQ:GEN opened at $24.41 on Tuesday. The company has a market capitalization of $14.71 billion, a PE ratio of 15.45 and a beta of 1.20. The company has a debt-to-equity ratio of 3.07, a current ratio of 0.40 and a quick ratio of 0.40. The business has a fifty day moving average price of $22.24 and a two-hundred day moving average price of $23.57. Gen Digital has a 1 year low of $17.78 and a 1 year high of $32.22.

Gen Digital (NASDAQ:GEN - Get Free Report) last announced its quarterly earnings data 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. The firm had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.25 billion. Gen Digital had a return on equity of 55.47% and a net margin of 19.46%.The business's revenue for the quarter was up 27.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.59 EPS. 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. Analysts forecast that Gen Digital will post 2.59 earnings per share for the current year.

Gen Digital Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Monday, May 18th were given a dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend was Monday, May 18th. Gen Digital's dividend payout ratio is currently 31.65%.

Insider Transactions at Gen Digital

In related news, Director John C. Chrystal acquired 3,000 shares of the company's stock in a transaction that occurred on Thursday, June 4th. The shares were acquired at an average price of $27.06 per share, with a total value of $81,180.00. Following the acquisition, the director owned 31,419 shares of the company's stock, valued at approximately $850,198.14. This trade represents a 10.56% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Ondrej Vlcek sold 100,000 shares of the stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $24.78, for a total value of $2,478,000.00. Following the sale, the director directly owned 3,832,724 shares in the company, valued at $94,974,900.72. This trade represents a 2.54% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 9.30% of the company's stock.

Institutional Trading of Gen Digital

A number of institutional investors have recently added to or reduced their stakes in GEN. International Assets Investment Management LLC purchased a new stake in Gen Digital during the 4th quarter worth about $27,000. Clearstead Advisors LLC lifted its holdings in Gen Digital by 48.6% during the 3rd quarter. Clearstead Advisors LLC now owns 1,223 shares of the company's stock worth $35,000 after purchasing an additional 400 shares in the last quarter. Weiss Asset Management LP purchased a new stake in Gen Digital during the 1st quarter worth about $41,000. TD Private Client Wealth LLC lifted its holdings in Gen Digital by 65.8% during the 4th quarter. TD Private Client Wealth LLC now owns 1,539 shares of the company's stock worth $42,000 after purchasing an additional 611 shares in the last quarter. Finally, Geneos Wealth Management Inc. lifted its holdings in 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 in the last quarter. Hedge funds and other institutional investors own 81.38% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.