Gen Digital (NASDAQ:GEN) Trading 9.8% Higher After Strong Earnings

Key Points

• Gen Digital's stock rose by 9.8% to $31.05 following a strong earnings report, exceeding analysts' expectations with $0.64 EPS against a consensus of $0.60.
• The company's quarterly revenue reached $1.26 billion, up 30.3% year-over-year, surpassing the anticipated $1.19 billion.
• Gen Digital declared a quarterly dividend of $0.125 per share, with an annualized yield of 1.6%, highlighting its commitment to returning value to shareholders.

Gen Digital Inc. (NASDAQ:GEN - Get Free Report) rose 9.8% during mid-day trading on Friday following a stronger than expected earnings report. The stock traded as high as $30.82 and last traded at $31.05. Approximately 1,298,370 shares changed hands during trading, a decline of 68% from the average daily volume of 4,088,456 shares. The stock had previously closed at $28.27.

The company reported $0.64 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.60 by $0.04. The business had revenue of $1.26 billion for the quarter, compared to analysts' expectations of $1.19 billion. Gen Digital had a return on equity of 59.38% and a net margin of 16.34%. The firm's quarterly revenue was up 30.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.53 EPS.

Gen Digital Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 10th. Shareholders of record on Monday, August 18th will be paid a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a yield of 1.6%. Gen Digital's dividend payout ratio (DPR) is currently 48.08%.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. B. Riley began coverage on Gen Digital in a report on Monday, July 14th. They set a "buy" rating and a $46.00 target price for the company. Barclays increased their price target on shares of Gen Digital from $32.00 to $33.00 and gave the stock an "equal weight" rating in a research note on Friday. Wall Street Zen cut Gen Digital from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 5th. Evercore ISI began coverage on Gen Digital in a research note on Tuesday, July 1st. They set an "outperform" rating and a $35.00 target price on the stock. Finally, Morgan Stanley dropped their target price on shares of Gen Digital from $27.00 to $25.00 and set an "equal weight" rating on the stock in a report on Wednesday, April 16th. Three research analysts have rated the stock with a hold rating, three have assigned a buy rating and two have issued a strong buy rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $33.80.

Insider Activity at Gen Digital

In other news, Director Nora Denzel sold 31,646 shares of Gen Digital stock in a transaction dated Friday, May 16th. The stock was sold at an average price of $28.76, for a total value of $910,138.96. Following the sale, the director directly owned 34,860 shares of the company's stock, valued at approximately $1,002,573.60. The trade was a 47.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 9.30% of the company's stock.

Institutional Investors Weigh In On Gen Digital

Large investors have recently bought and sold shares of the business. Cullen Frost Bankers Inc. bought a new stake in shares of Gen Digital in the 2nd quarter valued at approximately $32,000. Catalyst Capital Advisors LLC lifted its holdings in shares of Gen Digital by 117.6% in the 1st quarter. Catalyst Capital Advisors LLC now owns 1,580 shares of the company's stock worth $42,000 after acquiring an additional 854 shares during the last quarter. Geneos Wealth Management Inc. boosted 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. Tsfg LLC bought a new position in Gen Digital during the 1st quarter valued at about $52,000. Finally, Rise Advisors LLC raised its position in Gen Digital by 19.2% in the 1st quarter. Rise Advisors LLC now owns 2,361 shares of the company's stock worth $63,000 after purchasing an additional 381 shares during the period. Institutional investors own 81.38% of the company's stock.

Gen Digital Trading Up 9.8%

The company's 50 day simple moving average is $29.59 and its 200-day simple moving average is $27.81. The firm has a market cap of $19.11 billion, a P/E ratio of 30.13, a P/E/G ratio of 1.05 and a beta of 1.00. The company has a quick ratio of 0.51, a current ratio of 0.51 and a debt-to-equity ratio of 3.51.

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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