VeriSign, Inc. (NASDAQ:VRSN) Sees Significant Decline in Short Interest

VeriSign, Inc. (NASDAQ:VRSN) saw a large drop in short interest in the month of January. As of January 30th, there was short interest totaling 2,298,249 shares, a drop of 13.8% from the January 15th total of 2,665,860 shares. Currently, 2.5% of the shares of the stock are sold short. Based on an average trading volume of 663,587 shares, the short-interest ratio is presently 3.5 days. Based on an average trading volume of 663,587 shares, the short-interest ratio is presently 3.5 days. Currently, 2.5% of the shares of the stock are sold short.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the stock. Weiss Ratings reiterated a “hold (c+)” rating on shares of VeriSign in a research report on Monday, December 29th. Robert W. Baird set a $325.00 price objective on shares of VeriSign in a research note on Friday, October 24th. Zacks Research upgraded shares of VeriSign from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. Citigroup reduced their target price on VeriSign from $337.00 to $280.00 and set a “buy” rating on the stock in a report on Monday, February 9th. Finally, JPMorgan Chase & Co. raised their price target on VeriSign from $270.00 to $271.00 and gave the company a “neutral” rating in a report on Tuesday, January 6th. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $292.00.

VeriSign Stock Up 1.1%

Shares of VRSN opened at $218.55 on Thursday. The stock’s fifty day simple moving average is $241.22 and its 200-day simple moving average is $255.87. The firm has a market capitalization of $20.04 billion, a PE ratio of 24.81 and a beta of 0.75. VeriSign has a 12-month low of $208.86 and a 12-month high of $310.60.

VeriSign (NASDAQ:VRSN) last released its earnings results on Thursday, February 5th. The information services provider reported $2.23 earnings per share (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 40.40%. The business had revenue of $425.30 million for the quarter, compared to analyst estimates of $424.04 million. During the same quarter in the previous year, the company posted $2.00 earnings per share. The business’s revenue for the quarter was up 7.6% on a year-over-year basis.

VeriSign Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, February 27th. Investors of record on Thursday, February 19th will be issued a $0.81 dividend. This is a boost from VeriSign’s previous quarterly dividend of $0.77. This represents a $3.24 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date is Thursday, February 19th. VeriSign’s dividend payout ratio is currently 34.96%.

Insider Activity

In related news, CEO D James Bidzos sold 2,000 shares of the stock in a transaction dated Wednesday, January 14th. The shares were sold at an average price of $248.28, for a total value of $496,560.00. Following the completion of the transaction, the chief executive officer owned 414,099 shares of the company’s stock, valued at $102,812,499.72. This represents a 0.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Thomas C. Indelicarto sold 166 shares of the firm’s stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $219.24, for a total transaction of $36,393.84. Following the transaction, the executive vice president owned 42,023 shares of the company’s stock, valued at approximately $9,213,122.52. This represents a 0.39% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 23,662 shares of company stock worth $5,799,697. 0.84% of the stock is owned by company insiders.

Hedge Funds Weigh In On VeriSign

Several institutional investors have recently modified their holdings of VRSN. Norges Bank acquired a new stake in VeriSign in the fourth quarter worth $312,900,000. Vanguard Group Inc. increased its position in shares of VeriSign by 8.1% in the 3rd quarter. Vanguard Group Inc. now owns 11,443,710 shares of the information services provider’s stock valued at $3,199,318,000 after buying an additional 861,065 shares in the last quarter. AQR Capital Management LLC raised its stake in VeriSign by 32.9% during the 2nd quarter. AQR Capital Management LLC now owns 3,097,003 shares of the information services provider’s stock worth $894,414,000 after buying an additional 767,363 shares during the period. Hawk Ridge Capital Management LP acquired a new stake in VeriSign during the 4th quarter worth $149,686,000. Finally, Envestnet Asset Management Inc. lifted its holdings in VeriSign by 394.1% during the third quarter. Envestnet Asset Management Inc. now owns 552,008 shares of the information services provider’s stock worth $154,325,000 after acquiring an additional 440,289 shares in the last quarter. 92.90% of the stock is currently owned by institutional investors and hedge funds.

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.