Hixon Zuercher established a new position in Gen Digital Inc. (GEN 0.56%), acquiring 117,579 shares in a trade estimated at $3.3 million as of September 30, according to an SEC filing released on Friday.
What Happened
Hixon Zuercher reported a new equity position in Gen Digital (GEN 0.56%) in its quarterly holdings disclosed to the Securities and Exchange Commission (SEC filing) released on Friday. The fund acquired 117,579 shares during the quarter for an estimated $3.3 million based on the quarterly average price. Gen Digital now accounts for about 1% of the firm’s $328.6 million in reportable U.S. equity assets as of September 30.
What Else to Know
This was a new position; Gen Digital represents 1% of Hixon Zuercher’s 13F reportable assets as of September 30, which places it outside the fund’s top five holdings.
Top five holdings after the filing:
- NYSEMKT:GSIE: $23.4 million (7.1% of AUM)
- NYSEMKT:GSLC: $12.1 million (3.7% of AUM)
- NASDAQ:MSFT: $9.9 million (3% of AUM)
- NASDAQ:NVDA: $20 million (2.9% of AUM)
- NYSE:JPM: $9.6 million (2.9% of AUM)
As of Tuesday afternoon, Gen Digital shares were priced at $26.80, down about 4% over the past year and far underperforming the S&P 500's nearly 14% gain.
Company Overview
| Metric | Value |
|---|---|
| Market Capitalization | $16.5 billion |
| Revenue (TTM) | $4.2 billion |
| Net Income (TTM) | $597 million |
| Dividend Yield | 1.9% |
Company Snapshot
- Gen Digital offers a broad portfolio of consumer-focused cyber safety solutions, including Norton 360, LifeLock identity protection, VPN services, and privacy management tools.
- It operates a recurring-revenue model driven by subscriptions to security and privacy software, with products distributed through e-commerce, retail, telecom, and OEM partners.
- The company serves individual consumers and households globally, targeting users seeking comprehensive digital security and identity protection.
Gen Digital Inc. provides consumer cyber safety solutions through a subscription platform, delivering security, privacy, and identity protection services.
Foolish Take
Hixon Zuercher’s new $3.3 million position in Gen Digital adds a dose of growth and stability to its portfolio, which remains led by large, diversified names like Microsoft, Nvidia, and JPMorgan. The move comes as Gen’s stock has tumbled more than 15% since its August peak, despite strong fiscal first-quarter results that topped expectations.
For the quarter ended July 4, Gen reported 30% revenue growth to $1.26 billion and a 15% rise in non-GAAP operating income, with net income up 20% year over year. The company also raised its full-year outlook, projecting up to $4.9 billion in revenue and earnings of $2.56 per share, citing continued momentum in its cyber safety and trust-based solutions businesses.
While investors have recently rotated out of cybersecurity stocks after a sector-wide rally, Gen’s recurring-revenue model, global reach, and growing AI-driven product suite give it long-term staying power. For Hixon Zuercher, the timing could represent an attractive entry point into a profitable but temporarily pressured tech name.
Glossary
13F reportable assets: Assets that institutional investment managers must disclose quarterly to the SEC, showing their U.S. equity holdings.
AUM (Assets Under Management): The total market value of investments managed on behalf of clients by a fund or firm.
Forward P/E: Price-to-earnings ratio using forecasted earnings for the next 12 months, indicating how much investors pay per expected dollar of earnings.
EV/EBITDA: Enterprise value divided by earnings before interest, taxes, depreciation, and amortization; used to compare company valuations.
Dividend yield: Annual dividend payment divided by share price, showing the income return on an investment as a percentage.
OEM partners: Original Equipment Manufacturer partners; companies that integrate another firm's products into their own offerings.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Equity position: Ownership stake in a company, represented by holding its stock.
Quarterly holdings: The list of investments a fund or institution owns at the end of a fiscal quarter.
Recurring-revenue model: Business model where revenue is earned regularly, typically through ongoing subscriptions or contracts.
