Gen Digital Inc. (NASDAQ:GEN) Stock Now Rated “Hold” by Wall Street Brokerages

Shares of Gen Digital Inc. (NASDAQ:GEN) have earned a consensus recommendation of “Hold” from the eight ratings firms that are currently covering the stock, MarketBeat reports. Six investment analysts have rated the stock with a hold rating, one has issued a buy rating and one has given a strong buy rating to the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $30.80.

GEN has been the topic of a number of research analyst reports. Wells Fargo & Company raised their price target on Gen Digital from $22.00 to $28.00 and gave the stock an “equal weight” rating in a research report on Friday, August 7th. Royal Bank Of Canada reduced their price objective on Gen Digital from $30.00 to $26.00 and set a “sector perform” rating for the company in a research report on Friday, September 25th. Barclays raised their target price on shares of Gen Digital from $27.00 to $32.00 and gave the company an “equal weight” rating in a research report on Friday, August 7th. Weiss Ratings upgraded Gen Digital from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, July 15th. Finally, Wall Street Zen cut shares of Gen Digital from a “buy” rating to a “hold” rating in a report on Sunday, August 16th.

Insiders Place Their Bets

In other news, Director Ondrej Vlcek sold 200,000 shares of the stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $30.00, for a total transaction of $6,000,000.00. Following the sale, the director directly owned 3,332,904 shares of the company’s stock, valued at approximately $99,987,120. This represents a 5.66% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Travis Witteveen sold 30,000 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $29.42, for a total transaction of $882,600.00. Following the sale, the insider owned 496,545 shares in the company, valued at $14,608,353.90. This represents a 5.70% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 558,508 shares of company stock worth $16,356,093 over the last three months. Insiders own 9.70% of the company’s stock.

Hedge Funds Weigh In On Gen Digital

A number of institutional investors and hedge funds have recently bought and sold shares of GEN. National Pension Service grew its holdings in shares of Gen Digital by 254.6% during the second quarter. National Pension Service now owns 257,971 shares of the company’s stock worth $6,421,000 after purchasing an additional 185,219 shares during the last quarter. Capital Analysts LLC increased its position in Gen Digital by 38.7% during the 2nd quarter. Capital Analysts LLC now owns 7,337 shares of the company’s stock valued at $183,000 after purchasing an additional 2,049 shares during the period. Integrated Wealth Concepts LLC bought a new position in Gen Digital during the second quarter worth $177,000. Baird Financial Group Inc. grew its holdings in Gen Digital by 6.1% during the 2nd quarter. Baird Financial Group Inc. now owns 91,109 shares of the company’s stock worth $2,268,000 after acquiring an additional 5,203 shares during the period. Finally, Allworth Financial LP increased its holdings in Gen Digital by 13.0% in the second quarter. Allworth Financial LP now owns 8,932 shares of the company’s stock worth $222,000 after purchasing an additional 1,025 shares in the last quarter. Institutional investors and hedge funds own 81.38% of the company’s stock.

Gen Digital Price Performance

Shares of NASDAQ:GEN opened at $20.85 on Friday. The company has a 50 day moving average of $28.30 and a 200-day moving average of $24.68. The company has a debt-to-equity ratio of 3.00, a current ratio of 0.47 and a quick ratio of 0.47. Gen Digital has a one year low of $17.78 and a one year high of $31.65. The stock has a market cap of $12.48 billion, a price-to-earnings ratio of 12.12, a P/E/G ratio of 0.65 and a beta of 1.22.

Gen Digital (NASDAQ:GEN) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.71 EPS for the quarter, beating analysts’ consensus estimates 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 during the quarter, compared to analysts’ expectations of $1.31 billion. During the same period in the prior year, the business posted $0.64 EPS. Gen Digital’s revenue was up 6.3% on a year-over-year basis. 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. On average, sell-side analysts forecast that Gen Digital will post 2.66 earnings per share for the current year.

Gen Digital Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 9th. Investors of record on Monday, August 17th were paid a $0.1250 dividend. The ex-dividend date was Monday, August 17th. This represents a $0.50 dividend on an annualized basis and a yield of 2.4%. Gen Digital’s dividend payout ratio is 29.07%.

Trending Headlines about Gen Digital

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

• Positive Sentiment: Raised fiscal 2027 outlook: Gen Digital now expects fiscal 2027 EPS of $2.97, above the $2.87 analyst consensus, and revenue of approximately $5.5 billion versus the $5.4 billion consensus. The company also raised second-quarter fiscal 2027 guidance to $0.73 EPS and $1.4 billion in revenue, ahead of estimates of $0.70 and $1.3 billion, respectively. The stronger outlook could support investor confidence in the company’s underlying business.
• Positive Sentiment: Potentially oversold conditions: Gen Digital has lost 32.7% over four weeks, and technical analysis indicates the stock may be oversold. Analysts have also been revising earnings estimates higher, suggesting the recent selling could be nearing exhaustion and that a trend reversal is possible. Gen Digital Loses 32.7% in 4 Weeks
• Positive Sentiment: Management remains confident: Chief Executive Officer Vincent Pilette reportedly expects Gen Digital to reach the high end of its existing guidance, reinforcing the upgraded forecast.
• Neutral Sentiment: GoDaddy acquisition remains a major catalyst: Gen Digital reportedly submitted a preliminary offer to acquire GoDaddy and has addressed related acquisition rumors. The deal could expand Gen Digital’s digital-security and online-services footprint, but its ultimate effect depends on transaction terms, financing, regulatory review and execution. Gen Digital Submits Preliminary Offer for GoDaddy
• Negative Sentiment: Acquisition uncertainty has weighed on the stock: Reports indicate Gen Digital’s shares entered a sharp decline after the GoDaddy takeover bid. Investors appear concerned about the size, financing, potential leverage and integration risks associated with a large transaction, even though management has sought to address the rumors. Gen Digital CEO Addresses GoDaddy Rumors

About Gen Digital

Gen Digital Inc is a global cybersecurity and digital safety company that provides products and services designed to help consumers protect their devices, online privacy, personal information and digital identities. Its offerings include antivirus and malware protection, online privacy tools, identity theft protection, password management, scam and fraud protection, and utilities that support device performance and security.

The company markets its products under a portfolio of well-known brands, including Norton, Avast, LifeLock, Avira, AVG, ReputationDefender and CCleaner.