On September 25, GEN DIGITAL INC fell 5.01% in regular trading, trading at $21.915/share, with turnover of $152 million. The decline extends a steep selloff triggered by reports that the company has made an initial takeover approach for GoDaddy.

According to reports, GEN DIGITAL INC submitted a preliminary acquisition offer to GoDaddy in recent weeks, seeking to expand beyond its core cybersecurity and privacy technology business. Talks remain in early stages with no guarantee of a deal. The stock has now fallen approximately 17% over the past five trading days since the news surfaced.

RBC Capital Markets noted that the potential deal could be sizable and transformational, but the market had previously expected GEN DIGITAL INC to focus on reducing net leverage and pursuing smaller tuck-in acquisitions. The large-scale M&A move has exceeded investor expectations and sparked concern. RBC cut its price target to $26 from $30 on the same day, maintaining a Sector Perform rating. Analysts polled by FactSet maintain an average overweight rating with a mean price target of $33.50. The company is unlikely to comment on the speculation given its quiet period ahead of fiscal Q2 earnings.

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