VeriSign, Inc. (NASDAQ:VRSN) Given Average Rating of "Buy" by Analysts

Key Points

• Analysts give VeriSign an average “Buy” rating: Four analysts rate the stock a buy, one a strong buy, and one a hold, with an average 12-month price target of $328.75.
• VeriSign exceeded quarterly expectations, reporting $2.38 in EPS versus the $2.36 consensus estimate and revenue of $434.6 million, up 6% year over year.
• The company declared a quarterly dividend of $0.81 per share, equivalent to an annualized $3.24 payout and a 1.1% yield; institutional investors own 92.9% of outstanding shares.

VeriSign, Inc. (NASDAQ:VRSN - Get Free Report) has earned an average rating of "Buy" from the six research firms that are currently covering the stock, Marketbeat Ratings reports. One research analyst has rated the stock with a hold recommendation, four have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $328.75.

Several analysts have recently commented on VRSN shares. Robert W. Baird increased their price objective on VeriSign from $305.00 to $355.00 and gave the stock an "outperform" rating in a research note on Friday, April 24th. Citigroup upped their price target on VeriSign from $295.00 to $320.00 and gave the stock a "buy" rating in a report on Friday, April 24th. Wedbush increased their price target on VeriSign from $318.00 to $324.00 and gave the company an "outperform" rating in a research report on Friday, July 24th. Zacks Research upgraded VeriSign from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 27th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of VeriSign from $308.00 to $316.00 and gave the stock a "neutral" rating in a report on Friday, July 24th.

VeriSign Stock Performance

VeriSign stock opened at $294.56 on Monday. The firm's fifty day moving average price is $274.16 and its two-hundred day moving average price is $262.38. The firm has a market capitalization of $26.60 billion, a price-to-earnings ratio of 31.95 and a beta of 0.70. VeriSign has a 1-year low of $208.86 and a 1-year high of $312.48.

VeriSign (NASDAQ:VRSN - Get Free Report) last posted its earnings results on Thursday, July 23rd. The information services provider reported $2.38 earnings per share for the quarter, topping analysts' consensus estimates of $2.36 by $0.02. The company had revenue of $434.60 million for the quarter, compared to analyst estimates 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 was up 6.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.21 EPS. On average, research analysts forecast that VeriSign will post 9.56 EPS for the current year.

VeriSign Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Shareholders of record on Wednesday, August 19th will be given a $0.81 dividend. This represents a $3.24 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend is Wednesday, August 19th. VeriSign's dividend payout ratio is presently 35.14%.

Insider Buying and Selling at VeriSign

In other news, CEO D James Bidzos sold 3,300 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $296.54, for a total value of $978,582.00. Following the completion of the transaction, the chief executive officer directly owned 409,639 shares of the company's stock, valued at $121,474,349.06. This represents a 0.80% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thomas C. Indelicarto sold 500 shares of the company's stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $292.20, for a total value of $146,100.00. Following the completion of the transaction, the executive vice president directly owned 35,051 shares of the company's stock, valued at approximately $10,241,902.20. This represents a 1.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 32,700 shares of company stock worth $8,996,716. Insiders own 0.56% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. BlackRock Inc. bought a new position in shares of VeriSign during the 2nd quarter worth $2,116,154,000. Norges Bank bought a new stake in VeriSign in the 4th quarter valued at about $312,900,000. Hawk Ridge Capital Management LP bought a new stake in VeriSign in the 4th quarter valued at about $149,686,000. Deutsche Bank AG purchased a new stake in VeriSign during the second quarter valued at about $145,362,000. Finally, Bank of New York Mellon Corp purchased a new stake in VeriSign during the second quarter valued at about $126,420,000. Institutional investors own 92.90% of the company's stock.

VeriSign Company Profile

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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