R Squared Ltd Makes New Investment in VeriSign, Inc. $VRSN

Key Points

• R Squared Ltd has invested approximately $335,000 in VeriSign, Inc., acquiring 1,160 shares in the second quarter, amidst growing institutional interest in the stock.
• VeriSign reported $419.10 million in revenue for the last quarter, exceeding analyst expectations, and saw a 7.3% year-over-year revenue growth.
• The company has initiated a $1.11 billion stock buyback program, signaling management's belief that the stock is currently undervalued, along with announcing a quarterly dividend of $0.77.

R Squared Ltd bought a new stake in shares of VeriSign, Inc. (NASDAQ:VRSN - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 1,160 shares of the information services provider's stock, valued at approximately $335,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of the stock. Roman Butler Fullerton & Co. bought a new position in shares of VeriSign during the 2nd quarter valued at approximately $660,000. Ethic Inc. grew its position in shares of VeriSign by 21.4% during the 2nd quarter. Ethic Inc. now owns 13,362 shares of the information services provider's stock valued at $3,844,000 after acquiring an additional 2,351 shares during the period. Parcion Private Wealth LLC grew its position in shares of VeriSign by 13.5% during the 2nd quarter. Parcion Private Wealth LLC now owns 1,961 shares of the information services provider's stock valued at $566,000 after acquiring an additional 233 shares during the period. Jackson Thornton Wealth Management LLC bought a new position in shares of VeriSign during the 2nd quarter valued at approximately $274,000. Finally, Drive Wealth Management LLC bought a new position in shares of VeriSign during the 2nd quarter valued at approximately $224,000. 92.90% of the stock is owned by institutional investors.

Insider Activity at VeriSign

In other VeriSign news, EVP Thomas C. Indelicarto sold 501 shares of the stock in a transaction that occurred on Tuesday, October 14th. The shares were sold at an average price of $262.92, for a total value of $131,722.92. Following the sale, the executive vice president directly owned 34,189 shares in the company, valued at $8,988,971.88. This represents a 1.44% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO D James Bidzos sold 2,000 shares of the stock in a transaction that occurred on Wednesday, October 22nd. The stock was sold at an average price of $261.54, for a total transaction of $523,080.00. Following the completion of the sale, the chief executive officer owned 460,439 shares in the company, valued at $120,423,216.06. This represents a 0.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 45,706 shares of company stock worth $12,451,906 over the last quarter. Corporate insiders own 0.84% of the company's stock.

VeriSign Trading Down 1.4%

Shares of VRSN stock opened at $247.08 on Friday. The stock has a market capitalization of $23.08 billion, a P/E ratio of 28.80 and a beta of 0.79. The firm's 50 day moving average is $273.69 and its 200 day moving average is $274.47. VeriSign, Inc. has a 12 month low of $175.62 and a 12 month high of $310.60.

VeriSign (NASDAQ:VRSN - Get Free Report) last announced its quarterly earnings results on Thursday, October 23rd. The information services provider reported $2.27 EPS for the quarter, beating analysts' consensus estimates of $2.25 by $0.02. VeriSign had a net margin of 49.86% and a negative return on equity of 41.04%. The company had revenue of $419.10 million for the quarter, compared to analysts' expectations of $416.71 million. During the same period in the prior year, the company posted $2.07 EPS. VeriSign's revenue was up 7.3% compared to the same quarter last year. VeriSign has set its FY 2025 guidance at EPS.

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

VeriSign Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, November 25th. Shareholders of record on Tuesday, November 18th will be paid a $0.77 dividend. The ex-dividend date is Tuesday, November 18th. This represents a $3.08 annualized dividend and a yield of 1.2%. VeriSign's dividend payout ratio is currently 35.90%.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the stock. Citigroup reissued a "buy" rating on shares of VeriSign in a research report on Friday. Robert W. Baird set a $325.00 target price on shares of VeriSign in a research report on Friday. Finally, Weiss Ratings restated a "buy (b-)" rating on shares of VeriSign in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating and three have given a Buy rating to the company's stock. According to data from MarketBeat.com, VeriSign has an average rating of "Buy" and an average price target of $287.50.

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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