VeriSign (NASDAQ:VRSN) Releases Quarterly Earnings Results

Key Points

• VeriSign reported quarterly earnings of $2.27 per share, surpassing the consensus estimate of $2.25, and updated its FY 2025 guidance.
• The company's Board of Directors authorized a share repurchase plan allowing for the buyback of up to $1.11 billion in shares, reflecting confidence in the stock's value.
• Insider trading activity included CEO D James Bidzos selling 2,000 shares at an average price of $264.06, indicating a decrease in their ownership stake.

VeriSign (NASDAQ:VRSN - Get Free Report) announced its earnings results on Thursday. The information services provider reported $2.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.25 by $0.02, Zacks reports. VeriSign had a negative return on equity of 40.87% and a net margin of 50.05%. VeriSign updated its FY 2025 guidance to EPS.

VeriSign Stock Performance

VRSN stock traded down $1.36 during trading on Thursday, reaching $250.58. 1,383,153 shares of the company traded hands, compared to its average volume of 846,208. VeriSign has a 12 month low of $175.62 and a 12 month high of $310.60. The business has a 50 day simple moving average of $274.47 and a 200 day simple moving average of $274.28. The company has a market capitalization of $23.41 billion, a price-to-earnings ratio of 29.90 and a beta of 0.79.

VeriSign announced that its Board of Directors has authorized a share repurchase 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 buy up to 4.1% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's board of directors believes its shares are undervalued.

Insider Transactions at VeriSign

In related news, CEO D James Bidzos sold 2,000 shares of the firm's stock in a transaction dated Wednesday, October 15th. The stock was sold at an average price of $264.06, for a total transaction of $528,120.00. Following the sale, the chief executive officer owned 469,439 shares of the company's stock, valued at $123,960,062.34. This trade represents a 0.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Thomas C. Indelicarto sold 501 shares of the firm's stock in a transaction dated Tuesday, October 14th. The shares were sold at an average price of $262.92, for a total value of $131,722.92. Following the sale, the executive vice president directly owned 34,189 shares in the company, valued at approximately $8,988,971.88. The trade was a 1.44% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 38,706 shares of company stock worth $10,591,676. 0.84% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On VeriSign

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Advisors Asset Management Inc. raised its stake in VeriSign by 25.3% in the first quarter. Advisors Asset Management Inc. now owns 198 shares of the information services provider's stock valued at $50,000 after buying an additional 40 shares during the last quarter. MUFG Securities EMEA plc acquired a new stake in shares of VeriSign during the second quarter worth $69,000. Rakuten Securities Inc. lifted its stake in shares of VeriSign by 202.3% during the second quarter. Rakuten Securities Inc. now owns 396 shares of the information services provider's stock worth $114,000 after buying an additional 265 shares during the period. Connecticut Wealth Management LLC purchased a new stake in shares of VeriSign during the second quarter valued at $205,000. Finally, ICONIQ Capital LLC acquired a new position in shares of VeriSign in the 2nd quarter valued at $231,000. 92.90% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research analysts have issued reports on the company. Weiss Ratings restated a "buy (b-)" rating on shares of VeriSign in a research report on Wednesday, October 8th. Citigroup restated a "buy" rating on shares of VeriSign in a research note on Tuesday, July 8th. Finally, Robert W. Baird lifted their price objective on VeriSign from $285.00 to $305.00 and gave the company an "outperform" rating in a report on Tuesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating and three have assigned a Buy rating to the company. According to MarketBeat.com, VeriSign has an average rating of "Buy" and a consensus price target of $277.50.

VeriSign Company Profile

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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