VeriSign (NASDAQ:VRSN) Sets New 1-Year Low on Disappointing Earnings

VeriSign, Inc. (NASDAQ:VRSN) shares hit a new 52-week low during trading on Friday following a dissappointing earnings announcement. The company traded as low as $208.86 and last traded at $213.06, with a volume of 669377 shares. The stock had previously closed at $242.62.

The information services provider reported $2.23 EPS for the quarter, missing analysts’ consensus estimates of $2.29 by ($0.06). VeriSign had a net margin of 49.84% and a negative return on equity of 41.14%. The company had revenue of $425.30 million during the quarter, compared to analysts’ expectations of $424.04 million. During the same period in the previous year, the company posted $2.00 earnings per share. The company’s quarterly revenue was up 7.6% compared to the same quarter last year.

VeriSign Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, February 27th. Investors of record on Thursday, February 19th will be issued a dividend of $0.81 per share. This represents a $3.24 dividend on an annualized basis and a yield of 1.4%. This is an increase from VeriSign’s previous quarterly dividend of $0.77. The ex-dividend date is Thursday, February 19th. VeriSign’s dividend payout ratio is 35.90%.

VeriSign News Roundup

Here are the key news stories impacting VeriSign this week:

• Positive Sentiment: Board raised the quarterly dividend 5.2% to $0.81 per share (annualized yield ~1.5%); dividend payable Feb. 27 with an ex-dividend date of Feb. 19 — supports income-oriented holders. Dividend Increase Article
• Positive Sentiment: Underlying market demand remains intact: DNIB reports 386.9M domain name registrations at end of Q4 2025, up 2.2% quarter‑over‑quarter — a demand tailwind for VeriSign’s .com/.net registry business. DNIB Domain Report
• Neutral Sentiment: Revenue showed modest strength: Q4 revenue of $425.3M beat consensus by ~$1.3M and rose 7.6% year‑over‑year — a sign of stable top‑line momentum. Q4 Slide Deck / Press Release
• Neutral Sentiment: Company updated FY‑2026 revenue guidance roughly in line with Street expectations (~$1.7B), which keeps growth expectations steady but offers limited upside surprise. Guidance / Slide Deck
• Negative Sentiment: EPS missed: Q4 GAAP EPS was $2.23 vs. consensus $2.29 (miss of $0.06). Despite healthy margins, management reported a negative return on equity metric that may reflect capital structure/buyback accounting and raised investor concern. Earnings Summary / Transcript
• Negative Sentiment: Insider activity: an EVP sold 498 shares (~$249 avg) disclosed Feb. 3 — small in size but sometimes interpreted negatively in the short term. Insider Sale Filing

Analysts Set New Price Targets

A number of research firms recently issued reports on VRSN. Citigroup restated a “buy” rating on shares of VeriSign in a report on Friday, October 24th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of VeriSign in a report on Monday, December 29th. Robert W. Baird set a $325.00 price objective on VeriSign in a research note on Friday, October 24th. JPMorgan Chase & Co. raised their target price on VeriSign from $270.00 to $271.00 and gave the stock a “neutral” rating in a research report on Tuesday, January 6th. Finally, Zacks Research cut VeriSign from a “hold” rating to a “strong sell” rating in a research report on Tuesday, December 30th. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, VeriSign presently has an average rating of “Hold” and a consensus target price of $298.00.

Insider Buying and Selling at VeriSign

In related news, CEO D James Bidzos sold 5,000 shares of the stock in a transaction dated Tuesday, December 9th. The stock was sold at an average price of $244.59, for a total transaction of $1,222,950.00. Following the sale, the chief executive officer owned 434,099 shares of the company’s stock, valued at approximately $106,176,274.41. This represents a 1.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders sold 37,496 shares of company stock valued at $9,248,893 in the last three months. 0.84% of the stock is currently owned by insiders.

Institutional Investors Weigh In On VeriSign

Institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. lifted its stake in VeriSign by 8.1% in the 3rd quarter. Vanguard Group Inc. now owns 11,443,710 shares of the information services provider’s stock worth $3,199,318,000 after purchasing an additional 861,065 shares in the last quarter. State Street Corp grew its position in shares of VeriSign by 8.2% during the 3rd quarter. State Street Corp now owns 4,253,980 shares of the information services provider’s stock valued at $1,189,285,000 after purchasing an additional 321,737 shares in the last quarter. AQR Capital Management LLC increased its holdings in shares of VeriSign by 13.8% in the third quarter. AQR Capital Management LLC now owns 3,523,495 shares of the information services provider’s stock worth $985,063,000 after purchasing an additional 426,492 shares during the period. Geode Capital Management LLC raised its position in shares of VeriSign by 2.0% in the second quarter. Geode Capital Management LLC now owns 2,326,799 shares of the information services provider’s stock worth $670,685,000 after buying an additional 44,751 shares in the last quarter. Finally, Northern Trust Corp boosted its stake in VeriSign by 4.5% during the third quarter. Northern Trust Corp now owns 1,049,235 shares of the information services provider’s stock valued at $293,335,000 after buying an additional 44,743 shares during the period. 92.90% of the stock is owned by hedge funds and other institutional investors.

VeriSign Stock Down 7.6%

The firm has a market capitalization of $20.78 billion, a PE ratio of 25.44 and a beta of 0.75. The company has a 50-day moving average of $246.06 and a 200 day moving average of $259.70.

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.