In a recent transaction, Vincent Pilette, the CEO and President of Gen Digital Inc. (NASDAQ:GEN), sold 178,801 shares of the company's common stock, realizing over $4.5 million from the sale. The shares were sold at a weighted average price of $25.536, with individual transactions occurring at prices ranging from $25.460 to $25.645.
Investors keeping an eye on insider transactions will note that the sale took place on August 19, 2024, as reported in a Form 4 filing with the Securities and Exchange Commission. Following the sale, Pilette still holds a significant number of shares, amounting to 1,719,658 directly owned shares of Gen Digital Inc.
The disclosure provided by the Form 4 filing also mentioned that Pilette has indirect ownership through trusts, with 103,000 shares in the VPJW Revocable Trust and 517,477 shares in the VPJW Exempt Gift Trust, indicating a continued vested interest in the company's performance.
Investors and analysts often scrutinize the buying and selling activities of top executives as they can provide insights into the leadership's confidence in the company's future prospects. The filings give a transparent view of these transactions, ensuring that the market remains informed.
The sale was executed in multiple transactions, and Pilette has committed to providing full details regarding the number of shares sold at each separate price within the reported range upon request by Gen Digital Inc., any security holder, or the SEC staff.
Gen Digital Inc., known for its prepackaged software services, continues to be a watched entity in the technology sector, with its executive transactions being a point of interest for those following the company's stock performance.
In other recent news, Gen has reported a strong start to the fiscal year 2025 with significant growth in its first-quarter results. Earnings per share (EPS) were up by 15% in constant currency at $0.53, and a record direct customer count of 39.3 million was achieved, an increase of 1.1 million from the previous year. The company also recorded a 4% year-over-year growth in cyber safety bookings in constant currency.
Gen's Q1 bookings and total revenue increased in both USD and constant currency, with bookings at $913 million and revenue at $965 million. The company also launched a new product, Norton Ultra VPN, and continues to focus on educating consumers about cyber risks.
The company has reaffirmed its fiscal year 2025 revenue guidance, expecting it to be in the range of $3.89 billion to $3.93 billion. Non-GAAP EPS is projected to be between $2.17 and $2.23 per share. Gen also plans to continue returning excess free cash flow to shareholders, with $272 million already deployed for share repurchases in Q1.
These are among the recent developments for Gen, which recorded its 20th consecutive quarter of growth. The company is also seeing growth in the US and international markets, with a focus on privacy and identity protection services. Gen's retention rate improved to nearly 78% in Q1, approaching the 80% goal.
InvestingPro Insights
As investors digest the news of Vincent Pilette's sale of Gen Digital Inc. shares, it's essential to consider the company's current financial standing and market performance. With a robust market capitalization of $15.86 billion, Gen Digital Inc. remains a significant player in the technology sector. The company's P/E ratio stands at 26.52, reflecting investor expectations of future earnings growth. Interestingly, when adjusted for the last twelve months as of Q1 2025, the P/E ratio becomes more attractive at 17.03, suggesting that the company may be undervalued based on its earnings capacity.
Gen Digital Inc.'s revenue growth also paints a picture of steady expansion, with a 7.27% increase over the last twelve months leading up to Q1 2025, and a more modest quarterly growth rate of 2.33% in Q1 2025. These figures indicate a consistent upward trajectory in the company's revenue streams. Additionally, the gross profit margin stands impressively high at 80.65%, showcasing Gen Digital Inc.'s ability to maintain profitability despite costs.
InvestingPro Tips highlight Gen Digital Inc.'s strong gross profit margin as a key indicator of financial health and efficiency. Moreover, the company's EBITDA growth of 12.02% over the same period suggests operational strength and potential for increased investor returns. For those interested in further insights, InvestingPro offers additional tips, with a total of 15 more tips available that delve deeper into the company's financial nuances and investment potential.
Lastly, Gen Digital Inc.'s stock performance has shown resilience with a one-year price total return of 24.44%, closely approaching its 52-week high at 97.23% of the peak price. This demonstrates the market's positive reception to the company's recent developments and future outlook. The fair value as assessed by analysts stands at $27, while InvestingPro's fair value estimate of $30.36 suggests even more upside potential, indicating that the stock may be positioned for growth beyond the current market valuation.
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