Gen Digital Inc. (NASDAQ:GEN) director Peter A. Feld has sold a substantial amount of company stock, transactions filed with the Securities and Exchange Commission reveal. Over a two-day period, Feld sold shares worth more than $26 million in total, indicating significant activity from an insider of the prepackaged software services company.
On May 14, 2024, Feld sold 85850 shares at a price of $24.4359 each and 664150 shares at the same price per share. The following day, he continued by selling another 39182 shares, this time at a slightly higher price of $24.8888 per share, and an additional 303118 shares at the same increased price. These transactions resulted in a total sale of $26,846,361, with prices ranging between $24.4359 and $24.8888.
The SEC filings indicate that the shares were indirectly owned through various entities, including Starboard Leaders Tango LLC and Starboard Leaders Select VI LP, both of which, following these transactions, ceased to own any securities of Gen Digital Inc. as of May 15, 2024. The footnotes in the document also clarify that Feld may be deemed to beneficially own the securities held by these entities due to his positions within the management structure, but he expressly disclaims beneficial ownership of these securities except to the extent of his pecuniary interest.
Investors often monitor insider sales to gauge the confidence level of management and major stakeholders in the company's future performance. While the reasons behind Feld's decision to sell are not disclosed in the SEC filings, the substantial amount of stock offloaded over a short period could be noteworthy for shareholders and potential investors.
As the transactions are completed, Feld's direct involvement with Gen Digital Inc.'s stock holdings appears to be significantly reduced, as indicated by the post-transaction ownership figures. The filings did not indicate any purchases of stock during the reported period.
Investors and analysts will likely follow Gen Digital Inc.'s future filings and public announcements for any further developments or insights into the strategic decisions of its directors and significant stakeholders.
InvestingPro Insights
As investors digest the news of Gen Digital Inc. (NASDAQ:GEN) director Peter A. Feld's sizeable stock sale, a closer look at the company's financial health and market performance through InvestingPro data could provide additional context. The company's adjusted market capitalization stands at $16.18 billion, reflecting its substantial presence in the prepackaged software services industry.
Gen Digital's P/E ratio is currently at 26.28, with an adjusted P/E ratio for the last twelve months as of Q4 2024 at 24.11. This indicates a relatively high valuation compared to earnings, which may have been a factor in Feld's decision to sell. The company's revenue has grown by 14.2% in the last twelve months leading up to Q4 2024, showcasing a healthy top-line growth trajectory. Additionally, the gross profit margin is notably high at 80.82%, signaling strong profitability in the company's core operations.
InvestingPro Tips suggest that the company's negative PEG ratio of -0.47 could point to the market's potential overestimation of the company's future growth or a temporary misalignment with its earnings growth rate. Moreover, with a price that is 99.78% of its 52-week high and a one-year price total return of 62.59%, Gen Digital's stock performance has been robust, possibly influencing Feld's timing to sell.
For investors looking for a deeper dive into Gen Digital's financials and strategic outlook, InvestingPro offers additional tips, with the current count standing at 12. To gain access to these insights and more, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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