VeriSign, Inc. (NASDAQ:VRSN) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• VeriSign has a consensus analyst rating of “Moderate Buy”, with four buy ratings and two hold ratings among six covering firms. The average 1-year price target is $325.25.
• The company recently beat quarterly expectations, reporting $2.34 EPS versus the $2.30 estimate and revenue of $428.9 million, up 6.6% year over year. Analysts now expect 9.47 EPS for the current fiscal year.
• VeriSign also paid a quarterly dividend of $0.81 per share, equivalent to $3.24 annually and a 1.2% yield. Meanwhile, insiders have made recent sales, while institutional investors continue to hold the vast majority of the stock.

VeriSign, Inc. (NASDAQ:VRSN - Get Free Report) has received an average rating of "Moderate Buy" from the six research firms that are covering the firm, MarketBeat.com reports. Two investment analysts have rated the stock with a hold rating and four have issued a buy rating on the company. The average 1-year price target among brokerages that have issued ratings on the stock in the last year is $325.25.

A number of research firms have weighed in on VRSN. JPMorgan Chase & Co. boosted their target price on shares of VeriSign from $285.00 to $308.00 and gave the stock a "neutral" rating in a research note on Thursday, June 18th. Wedbush assumed coverage on VeriSign in a report on Thursday. They issued an "outperform" rating and a $318.00 target price on the stock. Citigroup raised their price target on shares of VeriSign from $295.00 to $320.00 and gave the stock a "buy" rating in a report on Friday, April 24th. Robert W. Baird boosted their target price on shares of VeriSign from $305.00 to $355.00 and gave the company an "outperform" rating in a report on Friday, April 24th. Finally, Weiss Ratings restated a "buy (b-)" rating on shares of VeriSign in a research report on Wednesday, June 24th.

VeriSign Price Performance

Shares of VRSN stock traded up $3.38 on Thursday, hitting $273.90. The company's stock had a trading volume of 44,871 shares, compared to its average volume of 814,708. The stock has a market capitalization of $24.92 billion, a price-to-earnings ratio of 30.27 and a beta of 0.71. VeriSign has a fifty-two week low of $208.86 and a fifty-two week high of $312.48. The firm's fifty day moving average price is $279.01 and its 200-day moving average price is $258.01.

VeriSign (NASDAQ:VRSN - Get Free Report) last posted its earnings results on Thursday, April 23rd. The information services provider reported $2.34 earnings per share for the quarter, topping the consensus estimate of $2.30 by $0.04. The firm had revenue of $428.90 million during the quarter, compared to analyst estimates of $424.50 million. VeriSign had a negative return on equity of 39.98% and a net margin of 49.95%.The company's revenue for the quarter was up 6.6% on a year-over-year basis. During the same period in the previous year, the company earned $2.10 EPS. Analysts predict that VeriSign will post 9.47 EPS for the current fiscal year.

VeriSign Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, May 27th. Stockholders of record on Tuesday, May 19th were issued a dividend of $0.81 per share. This represents a $3.24 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date was Tuesday, May 19th. VeriSign's dividend payout ratio (DPR) is currently 35.80%.

Insider Transactions at VeriSign

In other news, EVP Thomas C. Indelicarto sold 250 shares of the business's stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $269.23, for a total value of $67,307.50. Following the transaction, the executive vice president owned 36,051 shares in the company, valued at $9,706,010.73. The trade was a 0.69% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO D James Bidzos sold 3,300 shares of the stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $266.09, for a total value of $878,097.00. Following the sale, the chief executive officer directly owned 422,839 shares of the company's stock, valued at $112,513,229.51. The trade was a 0.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 26,300 shares of company stock worth $7,125,942 in the last 90 days. 0.56% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On VeriSign

Institutional investors and hedge funds have recently modified their holdings of the company. Norges Bank bought a new position in shares of VeriSign in the fourth quarter worth $312,900,000. Hawk Ridge Capital Management LP purchased a new stake in VeriSign during the fourth quarter valued at about $149,686,000. AQR Capital Management LLC lifted its holdings in shares of VeriSign by 14.1% in the 4th quarter. AQR Capital Management LLC now owns 4,020,169 shares of the information services provider's stock worth $976,700,000 after acquiring an additional 496,674 shares during the last quarter. UBS Group AG grew its position in VeriSign by 191.6% during the 4th quarter. UBS Group AG now owns 626,570 shares of the information services provider's stock worth $152,225,000 after acquiring an additional 411,728 shares during the last quarter. Finally, Balyasny Asset Management L.P. raised its stake in shares of VeriSign by 1,035.6% during the third quarter. Balyasny Asset Management L.P. now owns 420,830 shares of the information services provider's stock valued at $117,651,000 after acquiring an additional 383,771 shares during the last quarter. 92.90% of the stock is owned by hedge funds and other institutional investors.

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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