Gen Digital Inc.

🇺🇸NASDAQ Global Select
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Gen Digital Inc. stock analysis GEN overview
Somewhat Bullish +45

Arrowstreet Capital Limited Partnership Has $244.13 Million Position in Gen Digital Inc. $GEN - MarketBeat

📈 Arrowstreet Capital increased its Gen Digital position by 36% to 8.98 million shares worth $244.1 million in Q4.

💰 Gen Digital reported quarterly EPS of $0.67, beating the consensus estimate of $0.65.

📊 Revenue grew 27% year-over-year to $1.28 billion, surpassing analyst expectations of $1.25 billion.

💵 The company paid a quarterly dividend of $0.125 per share with an annualized yield of 2.1%.

📉 Analyst consensus remains 'Hold' with an average price target of $31.29 despite recent positive data.

🏦 Institutional ownership is high at 81.38%, led by major firms like The Manufacturers Life Insurance Company.

👤 Director John C. Chrystal bought 3,000 shares while Director Ondrej Vlcek sold 100,000 shares recently.

📉 Royal Bank of Canada and Barclays raised their price targets to $24 and $27 respectively in May.

🛡️ Gen Digital specializes in consumer cybersecurity, antivirus, VPN services, and identity protection solutions.

📈 The stock trades at a PE ratio of 15.39 with a market capitalization of $14.65 billion.

Bullish Signals
  • Arrowstreet Capital increased its stake by 36% to nearly 9 million shares, signaling strong institutional confidence.
  • The company beat earnings estimates with $0.67 EPS and revenue growth of 27% year-over-year.
  • Revenue of $1.28 billion exceeded analyst expectations of $1.25 billion, indicating solid demand.
  • High return on equity of 55.47% demonstrates efficient use of shareholder capital.
  • A quarterly dividend of $0.125 provides a 2.1% annualized yield to income-focused investors.
  • Director John C. Chrystal increased his personal ownership by over 10% through a recent purchase.
  • Analysts Royal Bank of Canada and Barclays recently raised their price targets on the stock.
Risk Factors
  • The majority of analysts maintain a 'Hold' rating, suggesting limited immediate upside potential.
  • Director Ondrej Vlcek sold 100,000 shares, reducing his personal stake by 2.54%.
  • Jefferies Financial Group recently downgraded the stock from 'Strong Buy' to 'Hold'.
  • The average analyst price target of $31.29 is below the recent trading range high of $32.22.
Full Analysis
Arrowstreet Capital Limited Partnership significantly increased its stake in Gen Digital Inc. (NASDAQ:GEN) by 36% during the fourth quarter, acquiring an additional 2.38 million shares. This brings Arrowstreet's total holding to approximately 8.98 million shares, valued at roughly $244.1 million, representing about 1.48% of the company's outstanding stock. Gen Digital reported strong quarterly financial results, posting earnings per share of $0.67 which beat analyst estimates of $0.65. Revenue surged 27% year-over-year to reach $1.28 billion, exceeding expectations of $1.25 billion. The company also declared a quarterly dividend of $0.125 per share, paid on June 10th to shareholders of record as of May 18th. Despite the positive institutional buying and earnings beat, Wall Street sentiment remains cautious with an average analyst rating of 'Hold' and a price target of $31.29. Recent insider activity includes Director John C. Chrystal purchasing 3,000 shares while Director Ondrej Vlcek sold 100,000 shares. Institutional ownership stands at 81.38%.