Wall Street Zen Upgrades Gen Digital (NASDAQ:GEN) to "Buy"

Key Points

• Wall Street Zen upgraded Gen Digital to “Buy” from “Hold,” though the broader analyst consensus remains “Hold” with an average price target of $31.67.
• Gen Digital reported quarterly results above expectations, with EPS of $0.71 versus $0.69 expected and revenue up 6.3% year over year to $1.34 billion. Management also raised fiscal 2027 EPS guidance to $2.87–$2.97, citing strong cybersecurity demand and bookings growth.
• The stock traded at $29.17, up 3.8%, while analyst reactions remained mixed: Barclays raised its target to $32 and Wells Fargo to $28, but both retained “Equal Weight” ratings.

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

Other equities analysts have also issued reports about the stock. Barclays raised 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. Argus raised Gen Digital to a "strong-buy" rating in a research note on Friday, May 22nd. Jefferies Financial Group downgraded Gen Digital from a "strong-buy" rating to a "hold" rating in a report on Monday, April 27th. Royal Bank Of Canada lifted their target price on Gen Digital from $27.00 to $30.00 and gave the company a "sector perform" rating in a research report on Friday. Finally, Wells Fargo & Company upped their target price on Gen Digital from $22.00 to $28.00 and gave the stock an "equal weight" rating in a report on Friday. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $31.67.

Gen Digital Trading Up 3.8%

NASDAQ GEN opened at $29.17 on Friday. The company's 50-day moving average price is $25.96 and its 200-day moving average price is $23.33. The company has a current ratio of 0.40, a quick ratio of 0.40 and a debt-to-equity ratio of 3.07. The stock has a market cap of $17.46 billion, a PE ratio of 16.96 and a beta of 1.21. Gen Digital has a 12 month low of $17.78 and a 12 month high of $32.22.

Gen Digital (NASDAQ:GEN - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.71 EPS for the quarter, topping the consensus estimate of $0.69 by $0.02. Gen Digital had a net margin of 20.73% and a return on equity of 57.01%. The company had revenue of $1.34 billion for the quarter, compared to the consensus estimate of $1.31 billion. During the same quarter last year, the firm posted $0.64 EPS. 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. Equities research analysts forecast that Gen Digital will post 2.61 earnings per share for the current year.

Insiders Place Their Bets

In other Gen Digital news, Director Ondrej Vlcek sold 100,000 shares of the firm's 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 completion of the sale, the director owned 3,832,724 shares of the company's stock, valued at approximately $94,974,900.72. This trade represents a 2.54% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director John C. Chrystal purchased 3,000 shares of the stock in a transaction on Thursday, June 4th. The stock was acquired at an average cost 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 represents a 10.56% increase in their position. The SEC filing for this purchase provides additional information. Corporate insiders own 9.70% of the company's stock.

Hedge Funds Weigh In On Gen Digital

Hedge funds and other institutional investors have recently modified their holdings of the stock. Meeder Advisory Services Inc. acquired a new stake in Gen Digital in the 2nd quarter worth approximately $584,000. Dunhill Financial LLC acquired a new position in Gen Digital during the 2nd quarter valued at approximately $50,000. Deutsche Bank AG acquired a new position in Gen Digital during the 2nd quarter valued at approximately $146,639,000. Trust Co. of Vermont purchased a new position in shares of Gen Digital in the second quarter worth $32,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Gen Digital in the second quarter worth $33,895,000. 81.38% of the stock is owned by hedge funds and other institutional investors.

Key Gen Digital News

Here are the key news stories impacting Gen Digital this week:

• Positive Sentiment: Quarterly results exceeded expectations. Gen Digital reported fiscal Q1 2027 adjusted EPS of $0.71, versus the $0.69 consensus estimate, while revenue increased 6.3% year over year to $1.34 billion, topping expectations of $1.31 billion. EPS also improved from $0.64 a year earlier. Gen Digital quarterly earnings report
• Positive Sentiment: Management raised fiscal 2027 targets. Gen Digital now expects full-year EPS of $2.87 to $2.97 and revenue of $5.4 billion to $5.5 billion, above analyst consensus of $2.83 EPS and approximately $5.4 billion in revenue. Second-quarter EPS guidance of $0.71 to $0.73 also exceeds the $0.70 consensus estimate. Reuters report on Gen Digital's raised forecast
• Positive Sentiment: Cybersecurity demand remains supportive. The company cited strong demand for its family of digital-security products, double-digit bookings growth and increasing online threats powered by artificial intelligence. These trends support recurring revenue and Gen Digital’s growth outlook. Gen Digital fiscal Q1 2027 results release
• Positive Sentiment: Barclays raised its price target from $27 to $32 while maintaining an Equal Weight rating, suggesting additional potential upside based on the firm’s updated valuation. Benzinga analyst update
• Neutral Sentiment: Gen Digital declared a quarterly dividend of $0.125 per share. Investors of record on August 17 will receive payment on September 9. The dividend provides ongoing shareholder income, although the 1.7% yield is unlikely to be the primary catalyst for the stock.
• Negative Sentiment: Wells Fargo raised its price target from $22 to $28 but retained an Equal Weight rating. The new target remains below the stock’s current trading level, signaling valuation caution despite the improved earnings outlook. Benzinga analyst update

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.

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.

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