Capstone Capital Management Ltd Invests $992,000 in VeriSign, Inc. $VRSN

Key Points

• Capstone Capital Management opened a new position in VeriSign during the fourth quarter, buying 4,083 shares worth about $992,000. The stake represents roughly 1% of its portfolio and makes VeriSign its 23rd-largest holding.
• VeriSign posted solid quarterly results, with EPS of $2.34 beating estimates and revenue of $428.9 million topping forecasts. Revenue rose 6.6% year over year, and analysts now expect full-year EPS of 9.46.
• The company also declared a quarterly dividend of $0.81 per share, payable May 27, implying an annualized yield of about 1.1%. Meanwhile, analysts remain generally constructive, with a consensus rating of Moderate Buy and a target price of $317.67.

Capstone Capital Management Ltd bought a new stake in VeriSign, Inc. (NASDAQ:VRSN - Free Report) in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 4,083 shares of the information services provider's stock, valued at approximately $992,000. VeriSign makes up approximately 1.0% of Capstone Capital Management Ltd's investment portfolio, making the stock its 23rd biggest position.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Root Financial Partners LLC bought a new position in VeriSign in the third quarter worth $29,000. Sunbelt Securities Inc. lifted its position in VeriSign by 429.2% in the third quarter. Sunbelt Securities Inc. now owns 127 shares of the information services provider's stock worth $36,000 after purchasing an additional 103 shares during the period. Bruce G. Allen Investments LLC raised its stake in VeriSign by 51.5% during the third quarter. Bruce G. Allen Investments LLC now owns 147 shares of the information services provider's stock worth $41,000 after acquiring an additional 50 shares in the last quarter. Board of the Pension Protection Fund acquired a new position in VeriSign during the fourth quarter worth $39,000. Finally, Advisors Asset Management Inc. raised its stake in VeriSign by 25.3% during the first quarter. Advisors Asset Management Inc. now owns 198 shares of the information services provider's stock worth $50,000 after acquiring an additional 40 shares in the last quarter. 92.90% of the stock is owned by institutional investors.

VeriSign Stock Up 2.6%

Shares of VRSN stock opened at $305.31 on Tuesday. The stock has a 50-day moving average price of $263.46 and a 200 day moving average price of $249.06. The firm has a market cap of $27.78 billion, a price-to-earnings ratio of 33.74 and a beta of 0.68. VeriSign, Inc. has a 12 month low of $208.86 and a 12 month high of $310.60.

VeriSign (NASDAQ:VRSN - Get Free Report) last announced its quarterly earnings data on Thursday, April 23rd. The information services provider reported $2.34 EPS for the quarter, topping analysts' consensus estimates of $2.30 by $0.04. VeriSign had a negative return on equity of 39.98% and a net margin of 49.95%.The firm had revenue of $428.90 million during the quarter, compared to analyst estimates of $424.50 million. During the same period last year, the company earned $2.10 earnings per share. The company's revenue was up 6.6% on a year-over-year basis. Sell-side analysts predict that VeriSign, Inc. will post 9.46 earnings per share for the current fiscal year.

VeriSign Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, May 27th. Shareholders of record on Tuesday, May 19th will be issued a dividend of $0.81 per share. The ex-dividend date is Tuesday, May 19th. This represents a $3.24 dividend on an annualized basis and a yield of 1.1%. VeriSign's dividend payout ratio (DPR) is 35.80%.

Insider Transactions at VeriSign

In other VeriSign news, EVP Thomas C. Indelicarto sold 498 shares of the firm's stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $231.78, for a total transaction of $115,426.44. Following the transaction, the executive vice president owned 40,028 shares in the company, valued at approximately $9,277,689.84. This trade represents a 1.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Danny R. Mcpherson sold 5,000 shares of the firm's stock in a transaction dated Tuesday, April 28th. The stock was sold at an average price of $271.02, for a total value of $1,355,100.00. Following the transaction, the executive vice president owned 35,195 shares in the company, valued at approximately $9,538,548.90. This trade represents a 12.44% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 6,826 shares of company stock worth $1,821,354. Company insiders own 0.56% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on VRSN shares. Robert W. Baird increased their price objective on VeriSign from $305.00 to $355.00 and gave the stock an "outperform" rating in a research note on Friday, April 24th. Weiss Ratings upgraded VeriSign from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, March 27th. Citigroup increased their price objective on VeriSign from $295.00 to $320.00 and gave the stock a "buy" rating in a research note on Friday, April 24th. Zacks Research upgraded VeriSign from a "strong sell" rating to a "hold" rating in a research note on Monday, February 9th. Finally, JPMorgan Chase & Co. increased their price objective on VeriSign from $273.00 to $278.00 and gave the stock a "neutral" rating in a research note on Friday, April 24th. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $317.67.

VeriSign Company Profile

VeriSign, Inc NASDAQ: VRSN is an internet infrastructure company that operates critical components of the global Domain Name System (DNS) and provides cybersecurity-related services. The company is best known as the authoritative registry operator for the .com and .net top-level domains, maintaining the central databases and zone files that enable domain name resolution for millions of websites. VeriSign's registry role is performed under contractual agreements with Internet Corporation for Assigned Names and Numbers (ICANN) and involves high-availability, highly secure operations to support continuous internet connectivity.

In addition to its registry business, VeriSign offers a suite of services designed to protect and accelerate DNS and internet traffic for enterprises and service providers.

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