VeriSign (NASDAQ:VRSN) Reaches New 12-Month High - Here's What Happened

Key Points

• VeriSign shares reached a new 52-week high, trading as high as $312.78 and closing up 1.3%. Analysts maintain a “Moderate Buy” consensus with an average price target of $352.
• The company reported quarterly revenue of $443 million, up 5.7% year over year and slightly above estimates, although earnings of $2.35 per share missed consensus by $0.11.
• VeriSign declared a quarterly dividend of $0.81 per share, equivalent to an annualized $3.24 payout and a 1.0% yield. Insiders sold shares recently, while institutional investors own 92.9% of the stock.

VeriSign, Inc. (NASDAQ:VRSN - Get Free Report) shares reached a new 52-week high on Friday. The stock traded as high as $312.78 and last traded at $311.0370, with a volume of 388,240 shares traded. The stock had previously closed at $305.95.

Analyst Ratings Changes

A number of equities research analysts have weighed in on VRSN shares. Wedbush raised their price target on VeriSign from $351.00 to $367.00 and gave the company an "outperform" rating in a research report on Monday. Citigroup increased their target price on shares of VeriSign from $325.00 to $345.00 and gave the stock a "buy" rating in a report on Friday, October 23rd. Robert W. Baird set a $380.00 price objective on VeriSign in a research report on Friday, October 23rd. JPMorgan Chase & Co. upped their price target on VeriSign from $308.00 to $316.00 and gave the stock a "neutral" rating in a research note on Friday, July 24th. Finally, Weiss Ratings raised VeriSign from a "buy (b-)" rating to a "buy (b)" rating in a research report on Monday, October 12th. Four equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, VeriSign has a consensus rating of "Moderate Buy" and a consensus price target of $352.00.

VeriSign Stock Up 1.3%

The stock has a market capitalization of $27.80 billion, a P/E ratio of 33.33 and a beta of 0.69. The stock's 50 day moving average price is $295.37 and its 200-day moving average price is $271.09.

VeriSign (NASDAQ:VRSN - Get Free Report) last announced its quarterly earnings data on Thursday, October 22nd. The information services provider reported $2.35 EPS for the quarter, missing the consensus estimate of $2.46 by ($0.11). The company had revenue of $443.00 million during the quarter, compared to analysts' expectations of $440.58 million. VeriSign had a net margin of 49.06% and a negative return on equity of 38.40%. The business's revenue for the quarter was up 5.7% compared to the same quarter last year. During the same period in the previous year, the business earned $2.27 earnings per share. Analysts anticipate that VeriSign, Inc. will post 9.53 earnings per share for the current year.

VeriSign Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, November 24th. Investors of record on Tuesday, November 17th will be paid a $0.81 dividend. The ex-dividend date of this dividend is Tuesday, November 17th. This represents a $3.24 annualized dividend and a yield of 1.0%. VeriSign's payout ratio is presently 34.84%.

Insider Transactions at VeriSign

In related news, EVP Thomas C. Indelicarto sold 500 shares of the firm's stock in a transaction that occurred on Thursday, October 8th. The shares were sold at an average price of $293.14, for a total value of $146,570.00. Following the transaction, the executive vice president owned 31,895 shares in the company, valued at approximately $9,349,700.30. This trade represents a 1.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO D. Bidzos sold 3,300 shares of VeriSign stock in a transaction on Tuesday, October 27th. The stock was sold at an average price of $303.67, for a total transaction of $1,002,111.00. Following the sale, the chief executive officer directly owned 368,527 shares in the company, valued at $111,910,594.09. This trade represents a 0.89% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 45,856 shares of company stock worth $13,497,228 over the last quarter. 0.56% of the stock is currently owned by insiders.

Institutional Trading of VeriSign

Several hedge funds have recently bought and sold shares of VRSN. Fifth Third Bancorp grew its stake in shares of VeriSign by 208.5% in the 1st quarter. Fifth Third Bancorp now owns 13,385 shares of the information services provider's stock valued at $3,324,000 after buying an additional 9,046 shares during the period. BlackRock Inc. bought a new position in shares of VeriSign during the 2nd quarter worth approximately $2,116,154,000. Callan Family Office LLC purchased a new stake in shares of VeriSign during the 2nd quarter valued at $944,000. Hsbc Holdings PLC grew its position in shares of VeriSign by 16.1% during the 1st quarter. Hsbc Holdings PLC now owns 237,966 shares of the information services provider's stock valued at $59,272,000 after acquiring an additional 33,064 shares during the period. Finally, Meitav Investment House Ltd. lifted its stake in VeriSign by 86.9% in the first quarter. Meitav Investment House Ltd. now owns 20,786 shares of the information services provider's stock valued at $5,162,000 after purchasing an additional 9,664 shares during the last quarter. 92.90% of the stock is currently owned by institutional investors.

VeriSign Company Profile

VeriSign, Inc NASDAQ: VRSN provides internet infrastructure services that support the global domain name system. The company operates the authoritative registry for the .com and .net top-level domains and provides registry services for certain other domains, helping maintain the databases that connect domain names with internet addresses.

The company's services include domain name registry operations, domain name registration-related support for accredited registrars, and infrastructure designed to improve the availability, stability, and security of internet naming services.

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