VeriSign (NASDAQ:VRSN) Reaches New 1-Year High - Still a Buy?

Key Points

• VeriSign shares hit a new 52-week high, trading as high as $312.48 and closing around $310, up about 1.3% on the day. The move came alongside a relatively low beta of 0.68 and a market cap of $28.21 billion.
• Analysts remain constructive on the stock, with several firms raising price targets after recent updates. The consensus rating is Moderate Buy, and the average target price is $317.67, with Robert W. Baird the most bullish at $355.
• VeriSign posted strong quarterly results, beating EPS and revenue estimates, and it also announced a quarterly dividend of $0.81 per share. Insider selling was reported, but institutional ownership remains high at 92.9%.

VeriSign, Inc. (NASDAQ:VRSN - Get Free Report) hit a new 52-week high during mid-day trading on Friday . The company traded as high as $312.48 and last traded at $310.0870, with a volume of 176771 shares trading hands. The stock had previously closed at $305.93.

Analysts Set New Price Targets

A number of analysts have weighed in on VRSN shares. Zacks Research upgraded VeriSign from a "strong sell" rating to a "hold" rating in a report on Monday, February 9th. JPMorgan Chase & Co. upped their target price on VeriSign from $273.00 to $278.00 and gave the stock a "neutral" rating in a report on Friday, April 24th. Robert W. Baird upped their target price on VeriSign from $305.00 to $355.00 and gave the stock an "outperform" rating in a report on Friday, April 24th. Weiss Ratings upgraded VeriSign from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, March 27th. Finally, Citigroup increased their price target on VeriSign from $295.00 to $320.00 and gave the company a "buy" rating in a research note on Friday, April 24th. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $317.67.

VeriSign Trading Up 1.3%

The stock has a market capitalization of $28.21 billion, a price-to-earnings ratio of 34.32 and a beta of 0.68. The stock has a 50-day moving average price of $267.20 and a 200 day moving average price of $250.49.

VeriSign (NASDAQ:VRSN - Get Free Report) last posted its earnings results on Thursday, April 23rd. The information services provider reported $2.34 EPS for the quarter, beating analysts' consensus estimates of $2.30 by $0.04. VeriSign had a negative return on equity of 39.98% and a net margin of 49.95%.The firm had revenue of $428.90 million for the quarter, compared to analysts' expectations of $424.50 million. During the same period last year, the firm earned $2.10 EPS. The company's quarterly revenue was up 6.6% on a year-over-year basis. Equities research analysts anticipate that VeriSign, Inc. will post 9.46 earnings per share for the current year.

VeriSign Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, May 27th. Investors of record on Tuesday, May 19th will be paid a $0.81 dividend. The ex-dividend date of this dividend is Tuesday, May 19th. This represents a $3.24 dividend on an annualized basis and a yield of 1.0%. VeriSign's dividend payout ratio (DPR) is currently 35.80%.

Insider Transactions at VeriSign

In other VeriSign news, EVP Danny R. Mcpherson sold 5,000 shares of the firm's stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $271.02, for a total value of $1,355,100.00. Following the transaction, the executive vice president directly owned 35,195 shares of the company's stock, valued at $9,538,548.90. This trade represents a 12.44% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Thomas C. Indelicarto sold 498 shares of the business's stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $231.78, for a total transaction of $115,426.44. Following the transaction, the executive vice president owned 40,028 shares in the company, valued at approximately $9,277,689.84. This trade represents a 1.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 6,826 shares of company stock worth $1,821,354 over the last ninety days. 0.56% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On VeriSign

Large investors have recently bought and sold shares of the stock. DV Equities LLC purchased a new position in VeriSign during the fourth quarter worth approximately $28,000. Root Financial Partners LLC acquired a new position in shares of VeriSign in the 3rd quarter valued at about $29,000. Sunbelt Securities Inc. lifted its position in VeriSign by 429.2% in the 3rd quarter. Sunbelt Securities Inc. now owns 127 shares of the information services provider's stock valued at $36,000 after purchasing an additional 103 shares during the last quarter. Board of the Pension Protection Fund bought a new stake in shares of VeriSign during the 4th quarter worth about $39,000. Finally, Bruce G. Allen Investments LLC raised its position in shares of VeriSign by 51.5% during the 3rd quarter. Bruce G. Allen Investments LLC now owns 147 shares of the information services provider's stock worth $41,000 after buying an additional 50 shares in the last quarter. Hedge funds and other 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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