Versant (NASDAQ:VSNT) Shares Gap Up After Strong Earnings

Key Points

• Versant shares gapped up after the company reported stronger-than-expected quarterly results, opening at $43.25 versus the prior close of $40.44 and trading as high as $44.26.
• The company beat earnings estimates with $1.99 EPS versus the $1.69 consensus, though revenue was $1.69 billion and remained under pressure from weaker linear TV advertising and distribution.
• Management also pointed to growth in platforms and licensing and announced an accelerated buyback plan, both of which may help support the stock despite ongoing profit and revenue challenges.

Shares of Versant Corporation (NASDAQ:VSNT - Get Free Report) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $40.44, but opened at $43.25. Versant shares last traded at $44.26, with a volume of 802,518 shares.

The company reported $1.99 earnings per share for the quarter, beating analysts' consensus estimates of $1.69 by $0.30. The business had revenue of $1.69 billion during the quarter.

Versant Dividend Announcement

The business also recently declared a dividend, which was paid on Wednesday, April 22nd. Stockholders of record on Wednesday, April 1st were paid a dividend of $0.375 per share. The ex-dividend date of this dividend was Wednesday, April 1st.

Versant News Summary

Here are the key news stories impacting Versant this week:

• Positive Sentiment: Versant beat Q1 earnings estimates, reporting $1.99 EPS versus the $1.69 consensus, which signals stronger-than-expected profitability. Versant earnings report and conference call
• Positive Sentiment: Management highlighted growth in platforms and licensing, which offset some of the pressure from declining linear TV revenue and suggests a healthier mix over time. Versant Media rallies on strong platforms and licensing growth, accelerated buyback plan
• Positive Sentiment: The company announced an accelerated buyback plan, which can support the stock by returning more cash to shareholders. Versant Media rallies on strong platforms and licensing growth, accelerated buyback plan
• Neutral Sentiment: Q1 revenue was essentially flat to slightly down, with weakness in linear distribution and advertising continuing to pressure results. Versant reports first-quarter revenue decline, with bright spots in platforms and licensing
• Neutral Sentiment: J.P. Morgan said Versant’s path as a standalone company is still uncertain, though it may have more cash to invest in itself. Versant as a standalone faces uncertain path, but with more cash to spend on itself—JP Morgan
• Negative Sentiment: Profit fell 22% as lower linear advertising revenue and higher standalone-company costs weighed on the quarter, underscoring ongoing operating challenges. Versant Q1 profit tumbles 22% on lower linear, ad revenues and higher standalone company costs

Analyst Ratings Changes

Several research analysts have weighed in on the stock. Wall Street Zen upgraded shares of Versant to a "hold" rating in a research report on Saturday, January 24th. Seaport Research Partners assumed coverage on Versant in a research note on Tuesday, March 31st. They set a "buy" rating and a $45.00 price target on the stock. Weiss Ratings upgraded Versant from a "sell (d)" rating to a "sell (d+)" rating in a report on Thursday, May 7th. JPMorgan Chase & Co. started coverage on Versant in a report on Tuesday. They set a "neutral" rating and a $43.00 price objective for the company. Finally, TD Cowen started coverage on Versant in a report on Monday, March 2nd. They issued a "hold" rating and a $32.00 target price on the stock. One research analyst has rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Versant has a consensus rating of "Reduce" and an average price target of $38.80.

Insiders Place Their Bets

In other Versant news, Director Gerald L. Hassell acquired 10,000 shares of the firm's stock in a transaction dated Monday, March 9th. The shares were acquired at an average price of $36.07 per share, for a total transaction of $360,700.00. Following the completion of the acquisition, the director directly owned 12,680 shares of the company's stock, valued at $457,367.60. This trade represents a 373.13% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Michael Aaron Conway acquired 1,350 shares of the stock in a transaction dated Monday, March 9th. The stock was acquired at an average cost of $36.14 per share, with a total value of $48,789.00. Following the transaction, the director owned 3,728 shares of the company's stock, valued at approximately $134,729.92. This trade represents a 56.77% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders bought 154,350 shares of company stock valued at $5,679,039. Company insiders own 7.60% of the company's stock.

Institutional Trading of Versant

A number of hedge funds have recently added to or reduced their stakes in the business. Citizens National Bank Trust Department purchased a new stake in Versant in the 1st quarter valued at about $26,000. Root Financial Partners LLC purchased a new position in shares of Versant during the 1st quarter worth about $28,000. Parallel Advisors LLC acquired a new stake in shares of Versant in the first quarter worth approximately $32,000. Advocate Investing Services LLC purchased a new stake in Versant in the first quarter valued at approximately $33,000. Finally, Livforsakringsbolaget Skandia Omsesidigt purchased a new stake in Versant in the first quarter valued at approximately $35,000.

Versant Stock Performance

The company has a current ratio of 4.02, a quick ratio of 4.02 and a debt-to-equity ratio of 0.09. The stock has a 50-day moving average of $38.32.

Versant Company Profile

Versant Corporation is a provider of data management software. The Company designs, develops, markets and supports database management system products that companies use to solve data management and data integration issues. It also provides related product support, training and consulting services to assist users of the Company's products in developing and deploying software applications based on its products. The Company's Versant Object Database product is used primarily by enterprises, which have data management requirements, such as technology providers, telecommunications carriers, Government defense agencies, defense contractors, healthcare companies and companies in the financial services and transportation industries.

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