Gen Digital Inc. $GEN Stake Cut by Royal Bank of Canada

Royal Bank of Canada lessened its holdings in Gen Digital Inc. (NASDAQ:GEN) by 8.6% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 842,676 shares of the company’s stock after selling 79,252 shares during the quarter. Royal Bank of Canada’s holdings in Gen Digital were worth $15,867,000 at the end of the most recent quarter.

Several other institutional investors have also recently added to or reduced their stakes in the business. Arrowstreet Capital Limited Partnership raised its holdings in shares of Gen Digital by 45.8% during the first quarter. Arrowstreet Capital Limited Partnership now owns 13,094,386 shares of the company’s stock worth $246,567,000 after purchasing an additional 4,115,676 shares during the period. First Trust Advisors LP boosted its holdings in shares of Gen Digital by 22.3% in the 4th quarter. First Trust Advisors LP now owns 19,941,546 shares of the company’s stock valued at $542,211,000 after buying an additional 3,640,451 shares during the period. Alyeska Investment Group L.P. bought a new stake in shares of Gen Digital during the 4th quarter valued at about $70,248,000. Victory Capital Management Inc. grew its position in shares of Gen Digital by 167.2% during the 4th quarter. Victory Capital Management Inc. now owns 3,328,737 shares of the company’s stock valued at $90,508,000 after buying an additional 2,082,850 shares during the last quarter. Finally, Boston Partners raised its stake in Gen Digital by 14.3% during the fourth quarter. Boston Partners now owns 15,644,289 shares of the company’s stock worth $425,336,000 after acquiring an additional 1,954,712 shares during the period. Institutional investors own 81.38% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the stock. Argus raised shares of Gen Digital to a “strong-buy” rating in a report on Friday, May 22nd. Barclays upped their target price on Gen Digital from $26.00 to $27.00 and gave the company an “equal weight” rating in a report on Friday, May 8th. Wall Street Zen cut Gen Digital from a “buy” rating to a “hold” rating in a research report on Saturday, June 20th. Weiss Ratings raised Gen Digital from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday, July 15th. Finally, Jefferies Financial Group lowered Gen Digital from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 27th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $29.33.

Gen Digital News Roundup

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

• Positive Sentiment: Q1 results beat expectations: Gen Digital reported adjusted earnings of $0.71 per share, above the $0.69 consensus estimate and up from $0.64 a year earlier. Revenue increased 6.3% year over year to $1.34 billion, exceeding analysts’ $1.31 billion forecast. Gen Digital Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Full-year guidance was raised above consensus: Gen Digital now expects fiscal 2027 earnings of $2.87-$2.97 per share, compared with the $2.83 analyst consensus, and revenue of $5.4-$5.5 billion, versus approximately $5.4 billion expected. The stronger outlook signals continued confidence in demand and earnings growth. Gen Digital Raises Annual Forecast on Strong Cybersecurity Demand
• Positive Sentiment: Near-term forecast also topped expectations: Second-quarter fiscal 2027 EPS guidance of $0.71-$0.73 is above the $0.70 consensus estimate, while revenue guidance of $1.3-$1.4 billion is broadly in line with expectations. Gen Further Accelerates in Q1 FY27 and Raises Full Year Guidance
• Neutral Sentiment: The earnings release showed a 19.46% net margin and 55.47% return on equity, highlighting strong profitability, though Gen Digital continues to operate with elevated leverage.

Insider Buying and Selling

In related news, Director Ondrej Vlcek sold 100,000 shares of the stock in a transaction that occurred 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 $94,974,900.72. This represents a 2.54% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director John C. Chrystal bought 3,000 shares of the stock in a transaction that occurred on Thursday, June 4th. The stock was acquired at an average price of $27.06 per share, for a total transaction of $81,180.00. Following the completion of the transaction, the director owned 31,419 shares in the company, valued at $850,198.14. This trade represents a 10.56% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 9.70% of the company’s stock.

Gen Digital Trading Up 0.5%

Gen Digital stock opened at $28.10 on Friday. Gen Digital Inc. has a 52-week low of $17.78 and a 52-week high of $32.22. The company has a quick ratio of 0.40, a current ratio of 0.40 and a debt-to-equity ratio of 3.07. The firm has a market capitalization of $16.82 billion, a price-to-earnings ratio of 17.78 and a beta of 1.21. The firm has a 50-day moving average price of $25.90 and a two-hundred day moving average price of $23.29.

Gen Digital (NASDAQ:GEN) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.71 EPS for the quarter, beating the consensus estimate of $0.69 by $0.02. The company had revenue of $1.34 billion for the quarter, compared to analyst estimates of $1.31 billion. Gen Digital had a net margin of 19.46% and a return on equity of 55.47%. Gen Digital’s revenue was up 6.3% compared to the same quarter last year. During the same quarter last year, the business earned $0.64 earnings per share. 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. Sell-side analysts expect that Gen Digital Inc. will post 2.61 earnings per share for the current year.

Gen Digital 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.