VeriSign (NASDAQ:VRSN) Announces Earnings Results

Key Points

• VeriSign missed EPS expectations, reporting $2.38 per share versus the $2.42 consensus, though revenue came in slightly ahead at $434.6 million versus $433.19 million expected.
• The stock edged lower after the report, with VRSN trading down about 0.4% to $261.58 amid heavier-than-average volume.
• Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $325.25; recent insider selling also included CEO D. James Bidzos and EVP Danny R. McPherson.

VeriSign (NASDAQ:VRSN - Get Free Report) posted its earnings results on Thursday. The information services provider reported $2.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.42 by ($0.04), FiscalAI reports. VeriSign had a net margin of 49.95% and a negative return on equity of 39.98%. The company had revenue of $434.60 million for the quarter, compared to the consensus estimate of $433.19 million.

VeriSign Trading Down 0.4%

Shares of NASDAQ:VRSN traded down $1.01 during mid-day trading on Thursday, reaching $261.58. The stock had a trading volume of 1,110,798 shares, compared to its average volume of 821,215. The company has a market cap of $23.80 billion, a P/E ratio of 28.90 and a beta of 0.71. VeriSign has a 1 year low of $208.86 and a 1 year high of $312.48. The business's 50 day moving average price is $277.52 and its 200 day moving average price is $258.96.

Insider Activity

In other VeriSign news, CEO D James Bidzos sold 3,300 shares of the stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $297.47, for a total transaction of $981,651.00. Following the completion of the transaction, the chief executive officer owned 439,339 shares in the company, valued at $130,690,172.33. This trade represents a 0.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Danny R. Mcpherson sold 5,000 shares of VeriSign stock in a transaction on Tuesday, April 28th. The stock was sold at an average price of $271.02, for a total transaction of $1,355,100.00. Following the completion of the transaction, the executive vice president directly owned 35,195 shares of the company's stock, valued at $9,538,548.90. The trade was a 12.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 26,300 shares of company stock worth $7,125,942. 0.56% of the stock is currently owned by insiders.

Institutional Trading of VeriSign

Several hedge funds and other institutional investors have recently bought and sold shares of VRSN. Advisors Asset Management Inc. increased its position in VeriSign by 25.3% during the first quarter. Advisors Asset Management Inc. now owns 198 shares of the information services provider's stock valued at $50,000 after acquiring an additional 40 shares during the last quarter. Integrated Wealth Concepts LLC lifted its holdings in shares of VeriSign by 12.3% in the 1st quarter. Integrated Wealth Concepts LLC now owns 1,232 shares of the information services provider's stock worth $313,000 after acquiring an additional 135 shares during the last quarter. NewEdge Advisors LLC boosted its stake in shares of VeriSign by 104.5% during the 1st quarter. NewEdge Advisors LLC now owns 4,125 shares of the information services provider's stock worth $1,047,000 after purchasing an additional 2,108 shares during the period. Jones Financial Companies Lllp boosted its stake in shares of VeriSign by 122.1% during the 1st quarter. Jones Financial Companies Lllp now owns 3,358 shares of the information services provider's stock worth $852,000 after purchasing an additional 1,846 shares during the period. Finally, Empowered Funds LLC grew its holdings in VeriSign by 2.0% during the 1st quarter. Empowered Funds LLC now owns 9,346 shares of the information services provider's stock valued at $2,373,000 after purchasing an additional 186 shares during the last quarter. Hedge funds and other institutional investors own 92.90% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have recently commented on VRSN shares. Robert W. Baird upped their price target on shares of VeriSign from $305.00 to $355.00 and gave the company an "outperform" rating in a research report on Friday, April 24th. Citigroup raised their price objective on shares of VeriSign from $295.00 to $320.00 and gave the stock a "buy" rating in a report on Friday, April 24th. Wedbush initiated coverage on shares of VeriSign in a research report on Thursday, July 16th. They set an "outperform" rating and a $318.00 target price for the company. JPMorgan Chase & Co. upped their target price on shares of VeriSign from $285.00 to $308.00 and gave the company a "neutral" rating in a report on Thursday, June 18th. Finally, Weiss Ratings reiterated a "buy (b-)" rating on shares of VeriSign in a research report on Wednesday, June 24th. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $325.25.

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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