Gen Digital (NASDAQ:GEN) Downgraded to Strong Sell Rating by Zacks Research

Zacks Research cut shares of Gen Digital (NASDAQ:GEN) from a hold rating to a strong sell rating in a research report sent to investors on Tuesday morning,Zacks.com reports.

Other equities research analysts have also recently issued research reports about the stock. Royal Bank Of Canada lowered their price target on shares of Gen Digital from $33.00 to $29.00 and set a “sector perform” rating for the company in a research report on Friday, November 7th. Wall Street Zen upgraded Gen Digital from a “hold” rating to a “buy” rating in a report on Sunday, October 12th. Evercore ISI lifted their price target on Gen Digital from $35.00 to $37.00 and gave the company an “outperform” rating in a report on Friday, November 7th. Weiss Ratings reissued a “hold (c+)” rating on shares of Gen Digital in a research report on Wednesday, October 8th. Finally, Jefferies Financial Group initiated coverage on Gen Digital in a research note on Friday, October 3rd. They set a “hold” rating and a $31.00 price objective for the company. Three analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $35.43.

Gen Digital Trading Up 0.2%

NASDAQ:GEN traded up $0.05 during midday trading on Tuesday, hitting $25.24. The stock had a trading volume of 574,997 shares, compared to its average volume of 3,641,871. The stock has a 50-day moving average of $26.78 and a 200 day moving average of $28.14. The company has a market capitalization of $15.56 billion, a price-to-earnings ratio of 27.42, a PEG ratio of 0.84 and a beta of 1.09. Gen Digital has a one year low of $22.74 and a one year high of $32.22. The company has a quick ratio of 0.51, a current ratio of 0.51 and a debt-to-equity ratio of 3.43.

Gen Digital (NASDAQ:GEN) last issued its earnings results on Thursday, November 6th. The company reported $0.62 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.01. The business had revenue of $1.22 billion during the quarter, compared to analysts’ expectations of $1.20 billion. Gen Digital had a return on equity of 57.09% and a net margin of 12.74%.The business’s revenue for the quarter was up 25.3% compared to the same quarter last year. During the same period in the prior year, the business earned $0.54 EPS. Gen Digital has set its FY 2026 guidance at 2.510-2.56 EPS and its Q3 2026 guidance at 0.620-0.64 EPS. As a group, sell-side analysts forecast that Gen Digital will post 2.05 EPS for the current year.

Gen Digital Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, December 10th. Stockholders of record on Monday, November 17th were given a $0.125 dividend. The ex-dividend date of this dividend was Monday, November 17th. This represents a $0.50 dividend on an annualized basis and a dividend yield of 2.0%. Gen Digital’s dividend payout ratio (DPR) is presently 54.35%.

Insider Activity

In other Gen Digital news, Director Ondrej Vlcek sold 113,674 shares of the stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $27.12, for a total value of $3,082,838.88. Following the completion of the sale, the director directly owned 3,932,980 shares in the company, valued at approximately $106,662,417.60. This trade represents a 2.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director John C. Chrystal purchased 5,000 shares of the company’s stock in a transaction dated Thursday, November 13th. The shares were acquired at an average price of $27.14 per share, for a total transaction of $135,700.00. Following the purchase, the director directly owned 28,419 shares of the company’s stock, valued at approximately $771,291.66. The trade was a 21.35% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 9.30% of the company’s stock.

Institutional Trading of Gen Digital

Large investors have recently bought and sold shares of the stock. True Wealth Design LLC raised its stake in Gen Digital by 92.0% in the 3rd quarter. True Wealth Design LLC now owns 1,104 shares of the company’s stock worth $31,000 after acquiring an additional 529 shares during the last quarter. Spire Wealth Management grew its stake in Gen Digital by 1,183.3% during the 3rd quarter. Spire Wealth Management now owns 1,078 shares of the company’s stock valued at $31,000 after purchasing an additional 994 shares during the last quarter. Cullen Frost Bankers Inc. acquired a new position in shares of Gen Digital in the second quarter valued at about $32,000. Clearstead Advisors LLC raised its stake in shares of Gen Digital by 48.6% in the third quarter. Clearstead Advisors LLC now owns 1,223 shares of the company’s stock worth $35,000 after purchasing an additional 400 shares during the last quarter. Finally, CYBER HORNET ETFs LLC acquired a new stake in shares of Gen Digital during the second quarter worth about $44,000. Hedge funds and other 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.