Wall Street Zen Downgrades Gen Digital (NASDAQ:GEN) to Hold

Key Points

• Wall Street Zen downgraded Gen Digital from buy to hold, adding to a mixed analyst picture that currently averages to a Hold rating with a consensus target price of $31.29.
• Gen Digital shares opened at $24.18, leaving the stock below its 52-week high of $32.22 but above its 52-week low of $17.78. The company also carries a relatively high debt-to-equity ratio of 3.07.
• The company recently reported better-than-expected earnings, with quarterly EPS of $0.67 versus estimates of $0.65 and revenue of $1.28 billion, up 27% year over year. Insiders were active too, with one director buying shares and another selling a large block in June.

Gen Digital (NASDAQ:GEN - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday.

GEN has been the topic of several other reports. Argus raised shares of Gen Digital to a "strong-buy" rating in a report on Friday, May 22nd. Royal Bank Of Canada upped their target price on Gen Digital from $22.00 to $24.00 and gave the stock a "sector perform" rating in a 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 target price on the stock. Barclays lifted their price target on Gen Digital from $26.00 to $27.00 and gave the company an "equal weight" rating in a report on Friday, May 8th. Finally, Jefferies Financial Group lowered Gen Digital from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 27th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, Gen Digital presently has an average rating of "Hold" and a consensus target price of $31.29.

Gen Digital Price Performance

Shares of Gen Digital stock opened at $24.18 on Friday. The company has a debt-to-equity ratio of 3.07, a current ratio of 0.40 and a quick ratio of 0.40. Gen Digital has a 1 year low of $17.78 and a 1 year high of $32.22. The firm's 50-day moving average is $22.65 and its two-hundred day moving average is $23.53. The stock has a market cap of $14.57 billion, a price-to-earnings ratio of 15.30 and a beta of 1.21.

Gen Digital (NASDAQ:GEN - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.67 EPS for the quarter, beating analysts' consensus estimates of $0.65 by $0.02. Gen Digital had a net margin of 19.46% and a return on equity of 55.47%. The business had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.25 billion. During the same quarter last year, the firm posted $0.59 EPS. The company's revenue for the quarter was up 27.0% on a year-over-year basis. 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. As a group, research analysts expect that Gen Digital will post 2.59 earnings per share for the current fiscal year.

Insider Transactions at Gen Digital

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

Institutional Trading of Gen Digital

Several large investors have recently made changes to their positions in GEN. Blue Trust Inc. raised its holdings in shares of Gen Digital by 2.4% during the fourth quarter. Blue Trust Inc. now owns 16,210 shares of the company's stock worth $441,000 after purchasing an additional 387 shares during the last quarter. Larson Financial Group LLC boosted its holdings in Gen Digital by 20.9% in the third quarter. Larson Financial Group LLC now owns 2,255 shares of the company's stock valued at $64,000 after purchasing an additional 390 shares during the last quarter. Clearstead Advisors LLC boosted its holdings in Gen Digital by 48.6% in the third quarter. Clearstead Advisors LLC now owns 1,223 shares of the company's stock valued at $35,000 after purchasing an additional 400 shares during the last quarter. MassMutual Private Wealth & Trust FSB grew its position in Gen Digital by 22.9% during the 4th quarter. MassMutual Private Wealth & Trust FSB now owns 2,223 shares of the company's stock worth $60,000 after purchasing an additional 414 shares during the period. Finally, Tealwood Asset Management Inc. grew its position in Gen Digital by 0.5% during the 4th quarter. Tealwood Asset Management Inc. now owns 81,715 shares of the company's stock worth $2,222,000 after purchasing an additional 426 shares during the period. 81.38% of the stock is owned by hedge funds and other institutional investors.

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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