CCM Investment Group LLC Takes $1.51 Million Position in VeriSign, Inc. (NASDAQ:VRSN)

Key Points

• CCM Investment Group LLC has acquired a $1.51 million stake in VeriSign,
  purchasing 6,028 shares of the information services provider.
• VeriSign recently announced a quarterly dividend of $0.77 per share, with a dividend yield of 1.1% and a payout ratio of 36.75%.
• The company's board has authorized a stock repurchase plan allowing repurchase of up to $1.11 billion in outstanding shares, indicating belief in the stock's undervaluation.

CCM Investment Group LLC purchased a new stake in VeriSign, Inc. (NASDAQ:VRSN - Free Report) during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 6,028 shares of the information services provider's stock, valued at approximately $1,513,000.

Several other large investors have also modified their holdings of the business. Rakuten Securities Inc. raised its stake in shares of VeriSign by 13,000.0% in the 1st quarter. Rakuten Securities Inc. now owns 131 shares of the information services provider's stock valued at $33,000 after acquiring an additional 130 shares during the period. UMB Bank n.a. grew its stake in VeriSign by 106.5% in the first quarter. UMB Bank n.a. now owns 159 shares of the information services provider's stock worth $40,000 after purchasing an additional 82 shares in the last quarter. Cromwell Holdings LLC lifted its holdings in VeriSign by 32.3% in the first quarter. Cromwell Holdings LLC now owns 172 shares of the information services provider's stock worth $44,000 after acquiring an additional 42 shares during the last quarter. Y.D. More Investments Ltd bought a new position in VeriSign in the first quarter worth about $45,000. Finally, Golden State Wealth Management LLC acquired a new position in VeriSign during the 1st quarter valued at about $47,000. 92.90% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at VeriSign

In other VeriSign news, CEO D James Bidzos sold 2,000 shares of the stock in a transaction on Wednesday, July 16th. The shares were sold at an average price of $281.35, for a total value of $562,700.00. Following the completion of the sale, the chief executive officer directly owned 515,772 shares of the company's stock, valued at $145,112,452.20. This represents a 0.39% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Thomas C. Indelicarto sold 501 shares of the stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $269.50, for a total transaction of $135,019.50. Following the completion of the sale, the executive vice president directly owned 37,268 shares of the company's stock, valued at approximately $10,043,726. This trade represents a 1.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 39,505 shares of company stock valued at $11,130,549. 0.84% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the stock. Citigroup restated a "buy" rating on shares of VeriSign in a research report on Tuesday, July 8th. Robert W. Baird upped their price target on shares of VeriSign from $285.00 to $305.00 and gave the stock an "outperform" rating in a research note on Tuesday, July 1st.

VeriSign Stock Up 1.7%

Shares of VRSN stock traded up $4.48 during trading hours on Wednesday, reaching $267.50. 808,974 shares of the stock traded hands, compared to its average volume of 880,722. VeriSign, Inc. has a 1-year low of $172.49 and a 1-year high of $310.60. The business has a fifty day moving average price of $281.15 and a 200 day moving average price of $260.51. The firm has a market capitalization of $24.99 billion, a PE ratio of 31.92 and a beta of 0.78.

VeriSign (NASDAQ:VRSN - Get Free Report) last released its quarterly earnings data on Thursday, July 24th. The information services provider reported $2.21 earnings per share for the quarter, beating the consensus estimate of $2.20 by $0.01. The firm had revenue of $409.90 million for the quarter, compared to analyst estimates of $410.35 million. VeriSign had a net margin of 50.05% and a negative return on equity of 40.87%. The company's revenue for the quarter was up 5.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.01 EPS.

VeriSign declared that its Board of Directors has initiated a share repurchase plan on Thursday, July 24th that allows the company to repurchase $1.11 billion in shares. This repurchase authorization allows the information services provider to reacquire up to 4.1% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

VeriSign Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 27th. Investors of record on Tuesday, August 19th will be issued a dividend of $0.77 per share. This represents a $3.08 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Tuesday, August 19th. VeriSign's dividend payout ratio is currently 36.75%.

About VeriSign

VeriSign, Inc, together with its subsidiaries, provides domain name registry services and internet infrastructure that enables internet navigation for various recognized domain names worldwide. The company enables the security, stability, and resiliency of internet infrastructure and services, including providing root zone maintainer services, operating two of thirteen internet root servers; and offering registration services and authoritative resolution for the .com and .net domains, which supports global e-commerce.