Gen Digital Target of Unusually Large Options Trading (NASDAQ:GEN)

Gen Digital Inc. (NASDAQ:GEN) was the target of some unusual options trading on Friday. Stock traders purchased 7,614 call options on the company. This represents an increase of 848% compared to the average volume of 803 call options.

Gen Digital Price Performance

Shares of Gen Digital stock traded down $0.08 during trading on Friday, reaching $25.91. The company’s stock had a trading volume of 2,796,719 shares, compared to its average volume of 6,160,020. The stock has a 50-day moving average price of $24.43 and a two-hundred day moving average price of $23.31. The stock has a market capitalization of $15.61 billion, a P/E ratio of 16.40 and a beta of 1.21. The company has a current ratio of 0.40, a quick ratio of 0.40 and a debt-to-equity ratio of 3.07. Gen Digital has a one year low of $17.78 and a one year high of $32.22.

Gen Digital (NASDAQ:GEN) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.67 earnings per share for the quarter, beating the consensus estimate of $0.65 by $0.02. Gen Digital had a net margin of 19.46% and a return on equity of 55.47%. The firm had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.25 billion. During the same quarter last year, the company posted $0.59 EPS. The company’s quarterly revenue was up 27.0% compared to the same quarter last year. 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, sell-side analysts anticipate that Gen Digital will post 2.59 EPS for the current fiscal year.

Gen Digital Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Monday, May 18th were given a $0.125 dividend. This represents a $0.50 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date was Monday, May 18th. Gen Digital’s dividend payout ratio (DPR) is presently 31.65%.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the stock. Barclays lifted their target price on shares of Gen Digital from $26.00 to $27.00 and gave the company an “equal weight” rating in a research report on Friday, May 8th. Argus raised shares of Gen Digital to a “strong-buy” rating in a research report on Friday, May 22nd. Jefferies Financial Group cut Gen Digital from a “strong-buy” rating to a “hold” rating in a report on Monday, April 27th. Wall Street Zen downgraded Gen Digital from a “buy” rating to a “hold” rating in a research report on Saturday, June 20th. Finally, Royal Bank Of Canada increased their price objective on Gen Digital from $22.00 to $24.00 and gave the stock a “sector perform” rating in a research note on Friday, May 8th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $31.29.

Insider Buying and Selling

In other news, Director John C. Chrystal bought 3,000 shares of the business’s stock in a transaction that occurred on Thursday, June 4th. The stock was acquired at an average cost of $27.06 per share, for a total transaction of $81,180.00. Following the completion of the purchase, the director 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 document filed with the SEC, which is accessible through this hyperlink. Also, Director Ondrej Vlcek sold 100,000 shares of the firm’s stock in a transaction on 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 transaction, the director directly 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 SEC filing for this sale provides additional information. Insiders own 9.30% of the company’s stock.

Institutional Investors Weigh In On Gen Digital

Several hedge funds and other institutional investors have recently made changes to their positions in GEN. Goldman Sachs Group Inc. lifted its stake in shares of Gen Digital by 1.1% during the first quarter. Goldman Sachs Group Inc. now owns 2,703,712 shares of the company’s stock valued at $71,757,000 after acquiring an additional 28,522 shares during the period. Great Lakes Advisors LLC acquired a new stake in Gen Digital in the first quarter worth about $205,000. Woodline Partners LP increased its position in Gen Digital by 37.8% in the first quarter. Woodline Partners LP now owns 27,590 shares of the company’s stock worth $732,000 after purchasing an additional 7,562 shares during the period. Focus Partners Wealth raised its holdings in Gen Digital by 9.7% during the 1st quarter. Focus Partners Wealth now owns 22,347 shares of the company’s stock worth $593,000 after purchasing an additional 1,980 shares during the last quarter. Finally, Geneos Wealth Management Inc. raised its holdings in Gen Digital by 221.5% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,717 shares of the company’s stock worth $46,000 after purchasing an additional 1,183 shares during the last quarter. 81.38% of the stock is owned by institutional investors and hedge funds.

About Gen Digital

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.