Zacks Research Reduces Earnings Estimates for Gen Digital

Key Points

• Zacks Research has revised down its earnings estimate for Gen Digital, projecting a Q1 2027 EPS of $0.61, down from $0.63.
• Morgan Stanley and Royal Bank of Canada both raised their price targets for Gen Digital, with Morgan Stanley setting it at $32 and RBC at $33.
• Gen Digital reported a 30.3% year-over-year revenue increase in its last quarterly earnings and beat EPS expectations by $0.04.

Gen Digital Inc. (NASDAQ:GEN - Free Report) - Equities researchers at Zacks Research dropped their Q1 2027 EPS estimates for shares of Gen Digital in a note issued to investors on Wednesday, October 15th. Zacks Research analyst Team now forecasts that the company will earn $0.61 per share for the quarter, down from their prior forecast of $0.63. The consensus estimate for Gen Digital's current full-year earnings is $2.05 per share. Zacks Research also issued estimates for Gen Digital's Q3 2027 earnings at $0.66 EPS and Q4 2027 earnings at $0.65 EPS.

Other analysts also recently issued research reports about the stock. Morgan Stanley raised their price target on shares of Gen Digital from $25.00 to $32.00 and gave the company an "equal weight" rating in a report on Tuesday, September 2nd. Royal Bank Of Canada raised their price target on shares of Gen Digital from $32.00 to $33.00 and gave the company a "sector perform" rating in a report on Friday, August 8th. B. Riley started coverage on shares of Gen Digital in a report on Monday, July 14th. They set a "buy" rating and a $46.00 price target on the stock. Barclays raised their price target on shares of Gen Digital from $32.00 to $33.00 and gave the company an "equal weight" rating in a report on Friday, August 8th. Finally, Wells Fargo & Company raised their price target on shares of Gen Digital from $37.00 to $40.00 and gave the company an "overweight" rating in a report on Friday, August 8th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, Gen Digital has a consensus rating of "Moderate Buy" and an average target price of $35.71.

Gen Digital Stock Performance

Shares of GEN stock opened at $27.04 on Thursday. Gen Digital has a one year low of $22.74 and a one year high of $32.22. The company's 50-day moving average is $29.36 and its 200 day moving average is $28.46. The company has a market capitalization of $16.65 billion, a price-to-earnings ratio of 27.88, a price-to-earnings-growth ratio of 0.90 and a beta of 0.94. The company has a debt-to-equity ratio of 3.63, a quick ratio of 0.50 and a current ratio of 0.50.

Gen Digital (NASDAQ:GEN - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported $0.64 EPS for the quarter, beating the consensus estimate of $0.60 by $0.04. Gen Digital had a net margin of 14.12% and a return on equity of 57.99%. The company had revenue of $1.26 billion for the quarter, compared to the consensus estimate of $1.19 billion. During the same period in the prior year, the firm posted $0.53 EPS. Gen Digital's revenue for the quarter was up 30.3% on a year-over-year basis. Gen Digital has set its Q2 2026 guidance at 0.600-0.620 EPS. FY 2026 guidance at 2.490-2.560 EPS.

Institutional Investors Weigh In On Gen Digital

Several institutional investors and hedge funds have recently modified their holdings of the stock. Optas LLC bought a new stake in shares of Gen Digital during the third quarter valued at approximately $260,000. Vontobel Holding Ltd. raised its position in shares of Gen Digital by 1,275.2% during the third quarter. Vontobel Holding Ltd. now owns 95,836 shares of the company's stock valued at $2,721,000 after buying an additional 88,867 shares during the last quarter. Generali Investments CEE investicni spolecnost a.s. raised its position in shares of Gen Digital by 12.0% during the third quarter. Generali Investments CEE investicni spolecnost a.s. now owns 190,512 shares of the company's stock valued at $5,409,000 after buying an additional 20,463 shares during the last quarter. Hixon Zuercher LLC purchased a new position in shares of Gen Digital in the third quarter valued at $3,338,000. Finally, Wedge Capital Management L L P NC grew its holdings in shares of Gen Digital by 18.4% in the third quarter. Wedge Capital Management L L P NC now owns 196,141 shares of the company's stock valued at $5,568,000 after purchasing an additional 30,462 shares in the last quarter. Institutional investors own 81.38% of the company's stock.

Gen Digital Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 10th. Stockholders of record on Monday, August 18th were given a dividend of $0.125 per share. The ex-dividend date was Monday, August 18th. This represents a $0.50 annualized dividend and a dividend yield of 1.8%. Gen Digital's dividend payout ratio (DPR) is presently 51.55%.

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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