Gen Digital (NASDAQ:GEN) Trading 9.8% Higher Following Earnings Beat

Gen Digital Inc. (NASDAQ:GEN)’s share price traded up 9.8% on Friday following a better than expected earnings announcement. The company traded as high as $30.82 and last traded at $31.05. 1,298,370 shares changed hands during trading, a decline of 68% from the average session volume of 4,088,456 shares. The stock had previously closed at $28.27.

The company reported $0.64 EPS for the quarter, topping the consensus estimate of $0.60 by $0.04. The firm had revenue of $1.26 billion for the quarter, compared to the consensus estimate of $1.19 billion. Gen Digital had a net margin of 14.12% and a return on equity of 59.28%. The business’s quarterly revenue was up 30.3% on a year-over-year basis. During the same quarter last year, the firm posted $0.53 EPS.

Gen Digital Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 10th. Stockholders of record on Monday, August 18th will be issued a dividend of $0.125 per share. The ex-dividend date is Monday, August 18th. This represents a $0.50 annualized dividend and a dividend yield of 1.6%. Gen Digital’s payout ratio is presently 48.08%.

Wall Street Analysts Forecast Growth

GEN has been the topic of several research reports. Royal Bank Of Canada boosted their price objective on shares of Gen Digital from $32.00 to $33.00 and gave the stock a “sector perform” rating in a report on Friday. Wall Street Zen downgraded shares of Gen Digital from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 5th. B. Riley initiated coverage on shares of Gen Digital in a report on Monday, July 14th. They set a “buy” rating and a $46.00 price objective on the stock. Wells Fargo & Company boosted their price objective on shares of Gen Digital from $37.00 to $40.00 and gave the stock an “overweight” rating in a report on Friday. Finally, Morgan Stanley dropped their price objective on shares of Gen Digital from $27.00 to $25.00 and set an “equal weight” rating on the stock in a report on Wednesday, April 16th. Three analysts have rated the stock with a hold rating, four have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $35.33.

Insiders Place Their Bets

In related news, Director Nora Denzel sold 31,646 shares of the company’s stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $28.76, for a total value of $910,138.96. Following the sale, the director owned 34,860 shares of the company’s stock, valued at $1,002,573.60. The trade was a 47.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 9.30% of the stock is currently owned by insiders.

Institutional Trading of Gen Digital

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Cullen Frost Bankers Inc. bought a new stake in Gen Digital during the second quarter worth about $32,000. Catalyst Capital Advisors LLC grew its stake in Gen Digital by 117.6% during the first quarter. Catalyst Capital Advisors LLC now owns 1,580 shares of the company’s stock worth $42,000 after buying an additional 854 shares during the last quarter. Geneos Wealth Management Inc. grew its stake in Gen Digital by 221.5% during the first quarter. Geneos Wealth Management Inc. now owns 1,717 shares of the company’s stock worth $46,000 after buying an additional 1,183 shares during the last quarter. Tsfg LLC bought a new stake in Gen Digital during the first quarter worth about $52,000. Finally, Rise Advisors LLC grew its stake in Gen Digital by 19.2% during the first quarter. Rise Advisors LLC now owns 2,361 shares of the company’s stock worth $63,000 after buying an additional 381 shares during the last quarter. Institutional investors own 81.38% of the company’s stock.

Gen Digital Price Performance

The stock’s 50-day moving average price is $29.64 and its 200-day moving average price is $27.83. The company has a market capitalization of $18.75 billion, a price-to-earnings ratio of 31.39, a price-to-earnings-growth ratio of 1.03 and a beta of 1.00. The company has a quick ratio of 0.51, a current ratio of 0.51 and a debt-to-equity ratio of 3.51.

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.