VeriSign (NASDAQ:VRSN) Shares Down 7.5% After Insider Selling

Key Points

• VeriSign's share price dropped 7.5% following insider sales by CEO D James Bidzos, who sold 2,000 and 5,000 shares on consecutive days, significantly affecting trading volume.
• Despite the recent share price decline, several analysts maintain a "buy" rating for VeriSign, with a consensus target price of $277.50.
• VeriSign announced a quarterly dividend of $0.77 per share, signaling continued investor returns amid stock repurchase plans and strong quarterly earnings performance.

VeriSign, Inc. (NASDAQ:VRSN - Get Free Report)'s share price fell 7.5% on Friday after an insider sold shares in the company. The company traded as low as $235.15 and last traded at $231.86. 310,973 shares traded hands during mid-day trading, a decline of 63% from the average session volume of 843,269 shares. The stock had previously closed at $250.58.

Specifically, CEO D James Bidzos sold 2,000 shares of the firm's stock in a transaction dated Wednesday, October 22nd. The shares were sold at an average price of $261.54, for a total value of $523,080.00. Following the completion of the sale, the chief executive officer owned 460,439 shares of the company's stock, valued at $120,423,216.06. This trade represents a 0.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO D James Bidzos sold 5,000 shares of the firm's stock in a transaction that occurred on Tuesday, October 21st. The stock was sold at an average price of $267.43, for a total transaction of $1,337,150.00. Following the transaction, the chief executive officer directly owned 462,439 shares in the company, valued at approximately $123,670,061.77. This trade represents a 1.07% decrease in their ownership of the stock. The disclosure for this sale can be found here.

Wall Street Analyst Weigh In

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

VeriSign Trading Down 8.3%

The stock's fifty day moving average price is $274.15 and its two-hundred day moving average price is $274.39. The firm has a market capitalization of $21.46 billion, a price-to-earnings ratio of 27.59 and a beta of 0.79.

VeriSign (NASDAQ:VRSN - Get Free Report) last announced its quarterly earnings results on Thursday, October 23rd. The information services provider reported $2.27 EPS for the quarter, topping the consensus estimate of $2.25 by $0.02. VeriSign had a net margin of 50.05% and a negative return on equity of 40.87%. The firm had revenue of $419.10 million for the quarter, compared to analyst estimates of $416.71 million. During the same period last year, the business earned $2.07 EPS. VeriSign's revenue for the quarter was up 7.3% compared to the same quarter last year. VeriSign has set its FY 2025 guidance at EPS.

VeriSign Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 25th. Shareholders of record on Tuesday, November 18th will be given a dividend of $0.77 per share. This represents a $3.08 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Tuesday, November 18th. VeriSign's dividend payout ratio (DPR) is presently 36.75%.

VeriSign announced that its Board of Directors has authorized a stock buyback plan on Thursday, July 24th that permits the company to repurchase $1.11 billion in outstanding shares. This repurchase authorization permits the information services provider to buy up to 4.1% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's leadership believes its shares are undervalued.

Institutional Trading of VeriSign

Several hedge funds and other institutional investors have recently made changes to their positions in VRSN. Livelsberger Financial Advisory purchased a new stake in VeriSign during the second quarter worth about $27,000. Bruce G. Allen Investments LLC raised its position in VeriSign by 56.5% during the second quarter. Bruce G. Allen Investments LLC now owns 97 shares of the information services provider's stock worth $28,000 after acquiring an additional 35 shares during the last quarter. Salomon & Ludwin LLC raised its position in VeriSign by 112.5% during the third quarter. Salomon & Ludwin LLC now owns 102 shares of the information services provider's stock worth $28,000 after acquiring an additional 54 shares during the last quarter. Bayforest Capital Ltd acquired a new position in VeriSign during the second quarter worth about $34,000. Finally, Ameritas Advisory Services LLC acquired a new position in VeriSign during the second quarter worth about $34,000. Hedge funds and other institutional investors own 92.90% of the company's stock.

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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