VeriSign (NASDAQ:VRSN) Rating Increased to Strong-Buy at Zacks Research

Zacks Research upgraded shares of VeriSign (NASDAQ:VRSN) from a hold rating to a strong-buy rating in a report published on Monday,Zacks.com reports.

A number of other equities analysts have also commented on the company. JPMorgan Chase & Co. increased their price target on VeriSign from $308.00 to $316.00 and gave the company a “neutral” rating in a research note on Friday, July 24th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of VeriSign in a research note on Wednesday, June 24th. Citigroup upped their price objective on VeriSign from $295.00 to $320.00 and gave the stock a “buy” rating in a report on Friday, April 24th. Wedbush increased their target price on VeriSign from $318.00 to $324.00 and gave the company an “outperform” rating in a research report on Friday, July 24th. Finally, Robert W. Baird raised their target price on shares of VeriSign from $305.00 to $355.00 and gave the company an “outperform” rating in a report on Friday, April 24th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average target price of $328.75.

VeriSign Stock Up 2.3%

VRSN opened at $281.15 on Monday. The firm has a 50-day simple moving average of $275.50 and a two-hundred day simple moving average of $259.86. VeriSign has a 52 week low of $208.86 and a 52 week high of $312.48. The company has a market capitalization of $25.39 billion, a PE ratio of 30.49 and a beta of 0.71.

VeriSign (NASDAQ:VRSN) last issued its quarterly earnings data on Thursday, July 23rd. The information services provider reported $2.38 earnings per share for the quarter, beating analysts’ consensus estimates of $2.36 by $0.02. VeriSign had a negative return on equity of 39.20% and a net margin of 49.76%.The firm had revenue of $434.60 million during the quarter, compared to analyst estimates of $433.19 million. During the same quarter last year, the business posted $2.21 earnings per share. The business’s quarterly revenue was up 6.0% compared to the same quarter last year. As a group, sell-side analysts expect that VeriSign will post 9.56 earnings per share for the current year.

VeriSign Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 27th. Investors of record on Wednesday, August 19th will be issued a $0.81 dividend. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $3.24 dividend on an annualized basis and a dividend yield of 1.2%. VeriSign’s dividend payout ratio (DPR) is presently 35.14%.

Insider Activity

In related news, CEO D James Bidzos sold 3,300 shares of VeriSign stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $297.47, for a total value of $981,651.00. Following the completion of the transaction, the chief executive officer owned 439,339 shares in the company, valued at approximately $130,690,172.33. This trade represents a 0.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thomas C. Indelicarto sold 500 shares of the business’s stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of $283.54, for a total value of $141,770.00. Following the sale, the executive vice president directly owned 36,551 shares in the company, valued at $10,363,670.54. The trade was a 1.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 25,100 shares of company stock valued at $6,803,294. 0.56% of the stock is currently owned by company insiders.

Institutional Trading of VeriSign

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. DV Equities LLC purchased a new position in VeriSign during the fourth quarter worth $28,000. Sunbelt Securities Inc. raised its stake in shares of VeriSign by 429.2% in the third quarter. Sunbelt Securities Inc. now owns 127 shares of the information services provider’s stock valued at $36,000 after acquiring an additional 103 shares during the period. Advisors Asset Management Inc. lifted its holdings in shares of VeriSign by 25.3% in the 1st quarter. Advisors Asset Management Inc. now owns 198 shares of the information services provider’s stock worth $50,000 after acquiring an additional 40 shares during the last quarter. Activest Wealth Management lifted its holdings in shares of VeriSign by 788.0% in the 4th quarter. Activest Wealth Management now owns 222 shares of the information services provider’s stock worth $54,000 after acquiring an additional 197 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd boosted its stake in shares of VeriSign by 120.8% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 234 shares of the information services provider’s stock worth $57,000 after purchasing an additional 128 shares during the period. Hedge funds and other institutional investors own 92.90% of the company’s stock.

Key VeriSign News

Here are the key news stories impacting VeriSign this week:

• Positive Sentiment: Zacks upgraded VeriSign to a No. 1 “Strong Buy” rating, citing improving earnings prospects and continued optimism around the company’s outlook. The upgrade is the clearest near-term catalyst for the shares. VeriSign Upgraded to Strong Buy
• Positive Sentiment: Recent quarterly results provide fundamental support: VeriSign reported $2.38 in earnings per share versus the $2.36 consensus estimate, while revenue rose 6% year over year to $434.6 million. Analysts project approximately $9.56 in full-year EPS.
• Positive Sentiment: Analyst targets remain above the current share price. The reported consensus target is $328.75, with recent targets ranging from $316 to $355 and ratings including “buy” and “outperform.”
• Positive Sentiment: VeriSign’s quarterly dividend of $0.81 per share, or $3.24 annualized, represents a yield of roughly 1.2% and adds to the stock’s shareholder-return appeal.
• Neutral Sentiment: VeriSign shares declined in the prior session but outperformed several competing stocks, suggesting relative resilience despite broader or sector-specific selling pressure. VeriSign Outperforms Competitors
• Negative Sentiment: CEO D. James Bidzos sold 3,300 shares for approximately $892,452, and EVP Thomas Indelicarto sold 500 shares for $140,000. Both transactions were conducted under pre-arranged Rule 10b5-1 plans, and the sales represented less than 1.4% of each executive’s holdings, reducing—but not eliminating—their negative signal.

About VeriSign

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.