Gen Digital Inc. (NASDAQ:GEN) to Issue $0.13 Quarterly Dividend

Key Points

• Quarterly dividend: Gen Digital announced a $0.125 per-share quarterly dividend (annualized $0.50) for shareholders of record on May 18, payable June 10, implying a yield of about 2.2%.
• The company beat quarterly EPS estimates ($0.64 vs. $0.63) with revenue of $1.24 billion, up 25.8% year-over-year, and maintains a low payout ratio (~18%) that analysts say supports the dividend.
• Shares trade at a ~22.9 P/E with a $13.5B market cap, but the balance sheet shows high leverage (debt-to-equity 3.50) and weak liquidity (current/quick ratios 0.47), while institutional investors own about 81% of the stock.

Gen Digital Inc. (NASDAQ:GEN - Get Free Report) announced a quarterly dividend on Thursday, May 7th. Shareholders of record on Monday, May 18th will be paid a dividend of 0.125 per share on Wednesday, June 10th. This represents a c) dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend is Monday, May 18th.

Gen Digital has decreased its dividend by an average of 0.5%annually over the last three years. Gen Digital has a payout ratio of 17.9% meaning its dividend is sufficiently covered by earnings. Analysts expect Gen Digital to earn $2.66 per share next year, which means the company should continue to be able to cover its $0.50 annual dividend with an expected future payout ratio of 18.8%.

Gen Digital Stock Performance

NASDAQ:GEN traded up $2.06 during mid-day trading on Friday, reaching $22.25. 8,848,212 shares of the company's stock were exchanged, compared to its average volume of 6,731,183. Gen Digital has a one year low of $17.78 and a one year high of $32.22. The firm has a market capitalization of $13.47 billion, a PE ratio of 22.94 and a beta of 1.10. The business's fifty day simple moving average is $20.15 and its two-hundred day simple moving average is $23.90. The company has a debt-to-equity ratio of 3.50, a quick ratio of 0.47 and a current ratio of 0.47.

Gen Digital (NASDAQ:GEN - Get Free Report) last released its quarterly earnings results on Thursday, February 5th. The company reported $0.64 EPS for the quarter, topping analysts' consensus estimates of $0.63 by $0.01. Gen Digital had a net margin of 12.76% and a return on equity of 56.76%. The business had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.23 billion. During the same period last year, the firm earned $0.56 earnings per share. Gen Digital's revenue for the quarter was up 25.8% compared to the same quarter last year. Analysts anticipate that Gen Digital will post 2.29 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Gen Digital

Institutional investors have recently made changes to their positions in the company. Sound Income Strategies LLC increased its position in shares of Gen Digital by 38,275.3% in the fourth quarter. Sound Income Strategies LLC now owns 194,563 shares of the company's stock valued at $5,078,000 after buying an additional 194,056 shares in the last quarter. Vanguard Group Inc. lifted its stake in Gen Digital by 1.4% during the 3rd quarter. Vanguard Group Inc. now owns 72,213,797 shares of the company's stock worth $2,050,150,000 after acquiring an additional 964,046 shares in the last quarter. Jupiter Asset Management Ltd. acquired a new position in Gen Digital during the 3rd quarter worth about $8,238,000. Y Intercept Hong Kong Ltd lifted its stake in Gen Digital by 525.5% during the 3rd quarter. Y Intercept Hong Kong Ltd now owns 83,826 shares of the company's stock worth $2,380,000 after acquiring an additional 70,424 shares in the last quarter. Finally, LBP AM SA increased its holdings in shares of Gen Digital by 63.7% in the 4th quarter. LBP AM SA now owns 738,272 shares of the company's stock valued at $20,074,000 after acquiring an additional 287,369 shares during 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.

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