Baird R W Upgrades VeriSign Shares to Strong-Buy

On Monday, investment analysts at Baird R W issued an upgrade for VeriSign (NASDAQ:VRSN), changing their rating from "hold" to "strong-buy." This change reflects a growing confidence in the company's performance and potential for growth.

In a separate analysis, Robert W. Baird elevated VeriSign’s rating from "neutral" to "outperform" while also increasing their price target for the stock from $200.00 to $250.00. This bullish outlook is in tandem with other positive developments surrounding the company's stock.

VeriSign Stock Performance Overview

As of Monday morning, shares of VeriSign opened at $200.46. Over the past year, the stock has seen a low of $167.04 and a high of $220.91. Current averages show the fifty-day moving average at $185.07 and the two-hundred-day moving average at $181.49. With a market capitalization of $19.26 billion and a price-to-earnings (PE) ratio of 23.31, the company is performing relatively well in the market.

Regarding its recent financial results, VeriSign reported earnings on October 24th. The company posted an earnings per share (EPS) of $2.07 for the quarter, which exceeded analysts' expectations of $2.01 by $0.06. Although there was a negative return on equity of 45.59%, the company enjoyed a solid net margin of 55.74%. Revenue for the quarter reached $390.60 million, surpassing the anticipated $390.19 million, and reflecting a year-over-year growth of 3.8% compared to the same quarter last year.

Insider Transactions

In terms of insider activity, EVP Thomas C. Indelicarto sold 2,456 shares of VeriSign on September 27th at an average price of $190.00. This transaction amounted to $466,640.00, leading to a reduction of approximately 6.59% in his shareholding. After the sale, Indelicarto retains 34,821 shares valued at roughly $6.6 million. Similarly, on December 2nd, EVP Danny R. McPherson sold 2,092 shares at an average of $192.43, amounting to around $402,563.56. Following this transaction, McPherson holds 26,157 shares worth approximately $5.03 million, representing a 7.41% decline in ownership. In the last three months, company insiders sold a total of 5,776 shares valued at $1.1 million, with corporate insiders currently owning only 0.84% of the company's stock.

Institutional Investment Activity

VeriSign has also seen significant activity from institutional investors lately. For instance, Blue Trust Inc. raised their position in VeriSign shares by 291.1% in the second quarter, now owning 176 shares worth $33,000 after adding 131 shares. Similarly, UMB Bank n.a. lifted its holdings by 117.2%, now owning 202 shares valued at $36,000 after a purchase of 109 shares. Other institutional players, like Rothschild Investment LLC, Migdal Insurance & Financial Holdings Ltd., and Concord Wealth Partners, have made new investments or increased their existing stakes in the company during the same time frame. Collectively, these investors own about 92.90% of VeriSign's stock.

About VeriSign

VeriSign, Inc. operates primarily in the domain name registry space and internet infrastructure sector. The company plays a critical role in ensuring the security, stability, and resiliency of internet infrastructure and services, including managing root zone services and operating two of the thirteen internet root servers. Additionally, they provide registration and resolution services for the popular .com and .net domains, bolstering global e-commerce activities.

Final Thoughts

The upgrade to a "strong-buy" rating from analysts could be a signal for investors to consider opportunities in VeriSign, reflecting the company's promising growth outlook. Keeping an eye on institutional activity in the company may provide further insights into its investment potential.

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