Mitsubishi UFJ Asset Management Co. Ltd. Invests $50.71 Million in VeriSign, Inc. $VRSN

Key Points

• Mitsubishi UFJ Asset Management initiated a $50.7 million position in VeriSign, buying 201,570 shares. Institutional investors and hedge funds collectively own 92.9% of the company.
• Analysts maintain a favorable view of VeriSign, with an average rating of “Buy” and a consensus price target of $328.75, above the reported share price of $273.03.
• VeriSign exceeded quarterly earnings and revenue expectations, reporting $2.38 in EPS and $434.6 million in revenue. The company also declared a quarterly dividend of $0.81 per share, representing a 1.2% annualized yield.

Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of VeriSign, Inc. (NASDAQ:VRSN - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund bought 201,570 shares of the information services provider's stock, valued at approximately $50,707,000. Mitsubishi UFJ Asset Management Co. Ltd. owned 0.22% of VeriSign at the end of the most recent quarter.

Several other large investors have also recently bought and sold shares of the stock. Diamond Hill Capital Management LLC Investment Advisor bought a new stake in VeriSign in the 2nd quarter valued at $53,134,000. Flputnam Investment Management Co. bought a new position in shares of VeriSign during the 2nd quarter worth about $538,000. Global Retirement Partners LLC bought a new position in shares of VeriSign during the 2nd quarter worth about $85,000. Alberta Investment Management Corp acquired a new position in shares of VeriSign during the second quarter valued at about $8,427,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of VeriSign during the second quarter valued at about $126,420,000. 92.90% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on VRSN shares. Zacks Research raised VeriSign from a "hold" rating to a "strong-buy" rating in a research report on Monday, July 27th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of VeriSign in a report on Wednesday, June 24th. JPMorgan Chase & Co. raised their price objective on VeriSign from $308.00 to $316.00 and gave the stock a "neutral" rating in a research report on Friday, July 24th. Citigroup lifted their price objective on VeriSign from $295.00 to $320.00 and gave the stock a "buy" rating in a report on Friday, April 24th. Finally, Wedbush boosted their price objective on VeriSign from $318.00 to $324.00 and gave the company an "outperform" rating in a research report on Friday, July 24th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Buy" and a consensus price target of $328.75.

Insider Buying and Selling at VeriSign

In related news, EVP John Calys sold 500 shares of the firm's stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $281.56, for a total transaction of $140,780.00. Following the completion of the transaction, the executive vice president owned 31,087 shares in the company, valued at $8,752,855.72. This trade represents a 1.58% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Thomas C. Indelicarto sold 500 shares of the business's stock in a transaction on Monday, August 10th. The shares were sold at an average price of $292.35, for a total value of $146,175.00. Following the completion of the sale, the executive vice president directly owned 34,551 shares in the company, valued at approximately $10,100,984.85. This represents a 1.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 36,500 shares of company stock valued at $10,059,796. 0.56% of the stock is currently owned by corporate insiders.

VeriSign Stock Performance

Shares of VRSN stock opened at $273.03 on Thursday. VeriSign, Inc. has a 52-week low of $208.86 and a 52-week high of $312.48. The stock has a market cap of $24.65 billion, a price-to-earnings ratio of 29.61 and a beta of 0.70. The firm has a fifty day moving average of $272.61 and a 200-day moving average of $264.18.

VeriSign (NASDAQ:VRSN - Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The information services provider reported $2.38 EPS for the quarter, topping analysts' consensus estimates of $2.36 by $0.02. The company had revenue of $434.60 million during the quarter, compared to the consensus estimate of $433.19 million. VeriSign had a net margin of 49.76% and a negative return on equity of 39.20%. The firm's revenue for the quarter was up 6.0% compared to the same quarter last year. During the same period last year, the firm earned $2.21 EPS. On average, sell-side analysts predict that VeriSign, Inc. will post 9.56 earnings per share for the current year.

VeriSign Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 27th. Shareholders of record on Wednesday, August 19th will be paid a dividend of $0.81 per share. The ex-dividend date is Wednesday, August 19th. This represents a $3.24 dividend on an annualized basis and a yield of 1.2%. VeriSign's dividend payout ratio (DPR) is currently 35.14%.

About VeriSign

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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