VeriSign (NASDAQ:VRSN) Releases Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• VeriSign reported quarterly earnings of $2.21 EPS, exceeding analysts' estimates of $2.20 EPS by $0.01, while its revenue grew 5.9% year-over-year to $409.90 million.
• The company plans to pay a quarterly dividend of $0.77 per share on August 27, representing an annualized yield of 1.01% with a payout ratio of 37.65%.
• VeriSign's stock increased 6.7% following the earnings announcement, reaching $305.79 per share, while analysts have upgraded price targets, reflecting positive sentiment on the stock's performance.

VeriSign (NASDAQ:VRSN - Get Free Report) posted its quarterly earnings results on Thursday. The information services provider reported $2.21 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.20 by $0.01, Zacks reports. VeriSign had a net margin of 50.05% and a negative return on equity of 41.12%. The company had revenue of $409.90 million for the quarter, compared to the consensus estimate of $410.35 million. During the same period last year, the firm posted $2.01 EPS. The company's revenue for the quarter was up 5.9% on a year-over-year basis. VeriSign updated its FY 2025 guidance to EPS.

VeriSign Stock Up 6.7%

VeriSign stock traded up $19.12 during trading hours on Friday, hitting $305.79. 1,260,106 shares of the company traded hands, compared to its average volume of 605,056. The firm's 50-day simple moving average is $282.03 and its two-hundred day simple moving average is $254.94. The firm has a market cap of $28.71 billion, a P/E ratio of 36.49 and a beta of 0.78. VeriSign has a 1-year low of $172.49 and a 1-year high of $308.00.

VeriSign Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, August 27th. Shareholders of record on Tuesday, August 19th will be paid a dividend of $0.77 per share. The ex-dividend date of this dividend is Tuesday, August 19th. This represents a $3.08 annualized dividend and a yield of 1.01%. VeriSign's payout ratio is 37.65%.

Insider Activity

In other news, CEO D James Bidzos sold 5,000 shares of VeriSign stock in a transaction that occurred on Tuesday, June 10th. The shares were sold at an average price of $276.71, for a total value of $1,383,550.00. Following the transaction, the chief executive officer owned 544,772 shares of the company's stock, valued at $150,743,860.12. The trade was a 0.91% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Over the last 90 days, insiders have sold 40,004 shares of company stock valued at $11,278,592. Insiders own 0.84% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in VRSN. NewEdge Advisors LLC boosted its holdings in shares of VeriSign by 104.5% during the first 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. Woodline Partners LP boosted its holdings in shares of VeriSign by 38.5% during the first quarter. Woodline Partners LP now owns 6,874 shares of the information services provider's stock worth $1,745,000 after purchasing an additional 1,911 shares during the period. Jones Financial Companies Lllp boosted its holdings in shares of VeriSign by 122.1% during the first 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. Empowered Funds LLC boosted its holdings in shares of VeriSign by 2.0% during the first quarter. Empowered Funds LLC now owns 9,346 shares of the information services provider's stock worth $2,373,000 after purchasing an additional 186 shares during the period. Finally, Integrated Wealth Concepts LLC boosted its holdings in shares of VeriSign by 12.3% during the first quarter. Integrated Wealth Concepts LLC now owns 1,232 shares of the information services provider's stock worth $313,000 after purchasing an additional 135 shares during the period. 92.90% of the stock is owned by hedge funds and other institutional investors.

VeriSign declared that its board has approved a stock buyback plan on Thursday, July 24th that authorizes the company to buyback $1.11 billion in outstanding shares. This buyback authorization authorizes the information services provider to reacquire up to 4.1% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's management believes its shares are undervalued.

Analysts Set New Price Targets

A number of research firms have recently issued reports on VRSN. Wall Street Zen upgraded shares of VeriSign from a "hold" rating to a "buy" rating in a research report on Saturday, April 12th. Robert W. Baird lifted their price objective on shares of VeriSign from $285.00 to $305.00 and gave the company an "outperform" rating in a research report on Tuesday, July 1st. Finally, Citigroup reiterated a "buy" rating on shares of VeriSign in a research report on Tuesday, July 8th.

About VeriSign

VeriSign, Inc, together with its subsidiaries, provides domain name registry services and internet infrastructure that enables internet navigation for various recognized domain names worldwide. The company enables the security, stability, and resiliency of internet infrastructure and services, including providing root zone maintainer services, operating two of thirteen internet root servers; and offering registration services and authoritative resolution for the .com and .net domains, which supports global e-commerce.

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