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Gen Digital Insider Trades Send A Signal

Published 17/05/2024, 16:01
© Reuters.  Gen Digital Insider Trades Send A Signal

Benzinga - by Benzinga Insights, Benzinga Staff Writer.

Peter A Feld, Director at Gen Digital (NASDAQ:GEN), disclosed an insider sell on May 17, according to a recent SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Friday, Feld sold 1,092,300 shares of Gen Digital. The total transaction value is $26,846,361.

As of Friday morning, Gen Digital shares are down by 1.1%, currently priced at $25.13.

Delving into Gen Digital's Background Gen is a cybersecurity pure-play that offers security, identity protection, and privacy solutions to individual consumers. The firm's cyber safety offerings, via brands such as Norton, Avast, and LifeLock, have long maintained their positions as some of the most recognizable consumer-focused security and identity-protection products.

Gen Digital's Financial Performance Revenue Growth: Over the 3 months period, Gen Digital showcased positive performance, achieving a revenue growth rate of 1.68% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Navigating Financial Profits:

  • Gross Margin: Achieving a high gross margin of 80.35%, the company performs well in terms of cost management and profitability within its sector.

  • Earnings per Share (EPS): Gen Digital's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.21.

Debt Management: Gen Digital's debt-to-equity ratio is notably higher than the industry average. With a ratio of 3.92, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Evaluating Valuation:

  • Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 26.47, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

  • Price to Sales (P/S) Ratio: The current P/S ratio of 4.28 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

  • EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 14.71, Gen Digital presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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The Importance of Insider Transactions Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Breaking Down the Significance of Transaction Codes Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Gen Digital's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

© 2024 Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

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