Hsbc Holdings PLC Sells 50,352 Shares of VeriSign, Inc. $VRSN

Key Points

• Hsbc Holdings PLC reduced its stake in VeriSign, Inc. by 21.9%, selling 50,352 shares and retaining a total of 179,336 shares worth $45.34 million as per recent SEC filings.
• VeriSign announced a quarterly dividend of $0.77 per share, resulting in an annualized yield of 1.1%, with the dividend payout ratio currently at 36.75%.
• The company also launched a stock repurchase program authorizing up to $1.11 billion in buybacks, indicating confidence in its stock valuation.

Hsbc Holdings PLC decreased its position in VeriSign, Inc. (NASDAQ:VRSN - Free Report) by 21.9% during the 1st quarter, according to the company in its most recent filing with the SEC. The fund owned 179,336 shares of the information services provider's stock after selling 50,352 shares during the quarter. Hsbc Holdings PLC owned 0.19% of VeriSign worth $45,337,000 at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. Rakuten Securities Inc. grew its holdings in VeriSign by 13,000.0% during the 1st quarter. Rakuten Securities Inc. now owns 131 shares of the information services provider's stock worth $33,000 after acquiring an additional 130 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in VeriSign during the 1st quarter worth about $34,000. UMB Bank n.a. grew its holdings in VeriSign by 106.5% during the 1st quarter. UMB Bank n.a. now owns 159 shares of the information services provider's stock worth $40,000 after acquiring an additional 82 shares during the last quarter. Cromwell Holdings LLC grew its holdings in VeriSign by 32.3% during the 1st 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. Finally, Y.D. More Investments Ltd bought a new stake in VeriSign during the 1st quarter worth about $45,000. Institutional investors own 92.90% of the company's stock.

VeriSign Trading Up 0.3%

VeriSign stock opened at $272.24 on Friday. VeriSign, Inc. has a 1 year low of $175.62 and a 1 year high of $310.60. The company has a market cap of $25.43 billion, a PE ratio of 32.49 and a beta of 0.78. The company's 50-day moving average is $279.70 and its two-hundred day moving average is $262.85.

VeriSign (NASDAQ:VRSN - Get Free Report) last announced its quarterly earnings results on Thursday, July 24th. The information services provider reported $2.21 earnings per share for the quarter, beating analysts' consensus estimates of $2.20 by $0.01. The business had revenue of $409.90 million for the quarter, compared to the consensus estimate of $410.35 million. VeriSign had a net margin of 50.05% and a negative return on equity of 40.87%. VeriSign's revenue for the quarter was up 5.9% on a year-over-year basis. During the same period last year, the company posted $2.01 EPS. VeriSign has set its FY 2025 guidance at EPS.

VeriSign Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 27th. Investors of record on Tuesday, August 19th will be given a $0.77 dividend. This represents a $3.08 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Tuesday, August 19th. VeriSign's dividend payout ratio (DPR) is currently 36.75%.

VeriSign announced that its Board of Directors has approved a stock repurchase program on Thursday, July 24th that authorizes the company to buyback $1.11 billion in outstanding shares. This buyback authorization authorizes the information services provider to repurchase up to 4.1% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on VRSN shares. Robert W. Baird upped their target price on shares of VeriSign from $285.00 to $305.00 and gave the company an "outperform" rating in a research report on Tuesday, July 1st. Citigroup restated a "buy" rating on shares of VeriSign in a research report on Tuesday, July 8th. One research analyst has rated the stock with a Strong Buy rating and two have given a Buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Buy" and a consensus target price of $277.50.

Insider Activity at VeriSign

In related news, EVP Thomas C. Indelicarto sold 501 shares of the stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $264.50, for a total value of $132,514.50. Following the sale, the executive vice president directly owned 36,767 shares in the company, valued at $9,724,871.50. This trade represents a 1.34% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO D James Bidzos sold 2,000 shares of the stock in a transaction that occurred on Wednesday, August 20th. The shares were sold at an average price of $270.71, for a total transaction of $541,420.00. Following the completion of the sale, the chief executive officer owned 496,304 shares in the company, valued at $134,354,455.84. This represents a 0.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 47,706 shares of company stock worth $13,225,964 in the last ninety days. Company insiders own 0.84% of the company's stock.

VeriSign Profile

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.

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