Gen Digital (NASDAQ:GEN) Reaches New 1-Year High - Here's Why

Key Points

• Gen Digital shares reached a new 52-week high of $30.53. Despite several price-target increases, analysts maintain a consensus “Hold” rating with an average target of $31.67.
• The company reported quarterly EPS of $0.71, exceeding estimates by $0.02, while revenue of $1.34 billion rose 6.3% year over year and topped expectations.
• Gen Digital declared a quarterly dividend of $0.125 per share, equivalent to an annualized $0.50 dividend and a 1.6% yield.

Gen Digital Inc. (NASDAQ:GEN - Get Free Report) shares hit a new 52-week high during trading on Friday . The company traded as high as $30.53 and last traded at $30.53, with a volume of 2828 shares trading hands. The stock had previously closed at $30.50.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on GEN shares. Barclays increased their target price on shares of Gen Digital from $27.00 to $32.00 and gave the stock an "equal weight" rating in a research report on Friday, August 7th. Wall Street Zen downgraded Gen Digital from a "buy" rating to a "hold" rating in a research note on Sunday, August 16th. Argus raised Gen Digital to a "strong-buy" rating in a research note on Friday, May 22nd. Royal Bank Of Canada boosted their price target on Gen Digital from $27.00 to $30.00 and gave the company a "sector perform" rating in a research note on Friday, August 7th. Finally, Wells Fargo & Company upped their price objective on shares of Gen Digital from $22.00 to $28.00 and gave the stock an "equal weight" rating in a report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat.com, Gen Digital has a consensus rating of "Hold" and an average target price of $31.67.

Gen Digital Stock Performance

The company has a debt-to-equity ratio of 3.00, a quick ratio of 0.47 and a current ratio of 0.47. The stock's 50-day simple moving average is $26.92 and its two-hundred day simple moving average is $23.76. The stock has a market cap of $18.34 billion, a price-to-earnings ratio of 17.81 and a beta of 1.21.

Gen Digital (NASDAQ:GEN - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.69 by $0.02. Gen Digital had a return on equity of 55.93% and a net margin of 20.73%.The company had revenue of $1.34 billion for the quarter, compared to the consensus estimate of $1.31 billion. During the same period last year, the business posted $0.64 earnings per share. The firm's 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. Analysts forecast that Gen Digital Inc. will post 2.64 earnings per share for the current year.

Gen Digital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 9th. Stockholders of record on Monday, August 17th will be issued a dividend of $0.125 per share. The ex-dividend date is Monday, August 17th. This represents a $0.50 dividend on an annualized basis and a dividend yield of 1.6%. Gen Digital's payout ratio is 29.07%.

Insider Transactions at Gen Digital

In related news, insider Travis Michael Witteveen sold 30,000 shares of the company's stock in a transaction on Monday, August 10th. The shares were sold at an average price of $29.42, for a total transaction of $882,600.00. Following the completion of the transaction, the insider directly owned 496,545 shares in the company, valued at $14,608,353.90. This represents a 5.70% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director John C. Chrystal purchased 3,000 shares of Gen Digital stock in a transaction on Thursday, June 4th. The stock was bought at an average cost of $27.06 per share, with a total value of $81,180.00. Following the completion of the acquisition, the director owned 31,419 shares in the company, valued at approximately $850,198.14. This trade represents a 10.56% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders have sold 430,260 shares of company stock worth $11,967,726. Insiders own 9.70% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in GEN. International Assets Investment Management LLC bought a new stake in shares of Gen Digital in the 4th quarter worth approximately $27,000. Grove Bank & Trust increased its position in shares of Gen Digital by 452.2% during the second quarter. Grove Bank & Trust now owns 1,132 shares of the company's stock valued at $28,000 after purchasing an additional 927 shares during the period. Trust Co. of Vermont bought a new stake in shares of Gen Digital during the second quarter valued at approximately $32,000. Weiss Asset Management LP acquired a new position in shares of Gen Digital in the first quarter valued at $41,000. Finally, TD Private Client Wealth LLC raised its stake in shares of Gen Digital by 65.8% in the fourth quarter. TD Private Client Wealth LLC now owns 1,539 shares of the company's stock valued at $42,000 after purchasing an additional 611 shares in the last quarter. Institutional investors own 81.38% of the company's stock.

Gen Digital Company Profile

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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