Is VeriSign Stock a Good Investment?

VeriSign Investment Advice

  VRSN
To provide specific investment advice or recommendations on VeriSign stock, we recommend investors consider the following general factors when evaluating VeriSign. This will help you to make an informed decision on whether to include VeriSign in one of your diversified portfolios:
  • Examine VeriSign's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research VeriSign's leadership team and their track record. Good management can help VeriSign navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Internet Services & Infrastructure space and any emerging trends that could impact VeriSign's business and its evolving consumer preferences.
  • Compare VeriSign's performance and market position to its competitors. Analyze how VeriSign is positioned in terms of product offerings, innovation, and market share.
  • Check if VeriSign pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about VeriSign's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in VeriSign stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if VeriSign is a good investment.
 
Sell
 
Buy
Strong Hold
Macroaxis provides recommendation on VeriSign to complement and cross-verify current analyst consensus on VeriSign. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure VeriSign is not overpriced, please validate all VeriSign fundamentals, including its short ratio, and the relationship between the cash per share and market capitalization . Given that VeriSign has a price to earning of 26.40 X, we advise you to double-check VeriSign market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Market Performance

WeakDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Follows the market closelyDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails

Examine VeriSign Stock

Researching VeriSign's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 14.0% of the company outstanding shares are owned by insiders. The company has Price/Earnings To Growth (PEG) ratio of 2.62. VeriSign recorded earning per share (EPS) of 8.58. The entity last dividend was issued on the 5th of May 2011. The firm had 2:1 split on the 7th of December 1999.
To determine if VeriSign is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding VeriSign's research are outlined below:
VeriSign currently holds 1.8 B in liabilities. VeriSign has a current ratio of 0.94, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about VeriSign's use of debt, we should always consider it together with its cash and equity.
Over 82.0% of the company outstanding shares are owned by institutional investors
Latest headline from MacroaxisInsider: Disposition of 462 shares by Bidzos D James of VeriSign at 180.88 subject to Rule 16b-3
VeriSign uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in VeriSign. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to VeriSign's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
8th of February 2024
Upcoming Quarterly Report
View
25th of April 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
8th of February 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View
Earnings surprises can significantly impact VeriSign's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises VeriSign's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
1999-07-22
1999-06-30-0.01-0.00150.008585 
2000-04-19
2000-03-310.010.020.01100 
1999-10-21
1999-09-300.010.020.01100 
1999-01-19
1998-12-31-0.02-0.010.0150 
2000-01-20
1999-12-310.020.040.02100 
2004-10-20
2004-09-300.160.190.0318 
2009-05-07
2009-03-310.280.320.0414 
2005-04-20
2005-03-310.210.250.0419 

Know VeriSign's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as VeriSign is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading VeriSign backward and forwards among themselves. VeriSign's institutional investor refers to the entity that pools money to purchase VeriSign's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Fidelity International Ltd2024-06-30
1.4 M
Goldman Sachs Group Inc2024-06-30
1.2 M
Norges Bank2024-06-30
1.1 M
Liontrust Investment Partners Llp2024-09-30
881.4 K
Northern Trust Corp2024-09-30
875.6 K
Arrowstreet Capital Limited Partnership2024-06-30
792.7 K
Legal & General Group Plc2024-06-30
792.2 K
Aqr Capital Management Llc2024-06-30
788.7 K
Alliancebernstein L.p.2024-06-30
771.2 K
Berkshire Hathaway Inc2024-06-30
12.8 M
Vanguard Group Inc2024-09-30
10.5 M
Note, although VeriSign's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

VeriSign's market capitalization trends

The company currently falls under 'Large-Cap' category with a current market capitalization of 17.43 B.

Market Cap

11.37 Billion

VeriSign's profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.53  0.55 
Return On Capital Employed 1.79  1.87 
Return On Assets 0.47  0.49 
Return On Equity(0.52)(0.54)
The company has Profit Margin (PM) of 0.56 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.69 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.69.
Determining VeriSign's profitability involves analyzing its financial statements and using various financial metrics to determine if VeriSign is a good buy. For example, gross profit margin measures VeriSign's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of VeriSign's profitability and make more informed investment decisions.

VeriSign's Earnings Breakdown by Geography

Evaluate VeriSign's management efficiency

VeriSign has return on total asset (ROA) of 0.4159 % which means that it generated a profit of $0.4159 on every $100 spent on assets. This is way below average. VeriSign's management efficiency ratios could be used to measure how well VeriSign manages its routine affairs as well as how well it operates its assets and liabilities. At this time, VeriSign's Return On Tangible Assets are very stable compared to the past year. As of the 21st of November 2024, Return On Capital Employed is likely to grow to 1.87, while Return On Equity is likely to drop (0.54). At this time, VeriSign's Return On Tangible Assets are very stable compared to the past year. As of the 21st of November 2024, Fixed Asset Turnover is likely to grow to 6.52, while Intangible Assets are likely to drop about 124 M.
Last ReportedProjected for Next Year
Book Value Per Share(15.29)(14.53)
Tangible Book Value Per Share(17.20)(16.34)
Enterprise Value Over EBITDA 20.85  19.81 
Price Book Value Ratio(13.47)(14.14)
Enterprise Value Multiple 20.85  19.81 
Price Fair Value(13.47)(14.14)
Enterprise Value22.6 B11.9 B
Leadership at VeriSign emphasizes sustainable growth and financial prudence. Our analysis evaluates how these priorities impact the stock's performance in the market.
Beta
0.911

Basic technical analysis of VeriSign Stock

As of the 21st of November, VeriSign has the Risk Adjusted Performance of 0.0222, coefficient of variation of 3894.28, and Semi Deviation of 0.8596. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of VeriSign, as well as the relationship between them.

VeriSign's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific VeriSign insiders, such as employees or executives, is commonly permitted as long as it does not rely on VeriSign's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases VeriSign insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

VeriSign's Outstanding Corporate Bonds

VeriSign issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. VeriSign uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most VeriSign bonds can be classified according to their maturity, which is the date when VeriSign has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand VeriSign's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing VeriSign's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider VeriSign's intraday indicators

VeriSign intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of VeriSign stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

VeriSign Corporate Filings

F4
18th of November 2024
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
13A
12th of November 2024
An amended filing to the original Schedule 13G
ViewVerify
8K
24th of October 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
F3
23rd of October 2024
The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock
ViewVerify
VeriSign time-series forecasting models is one of many VeriSign's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary VeriSign's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

VeriSign Stock media impact

Far too much social signal, news, headlines, and media speculation about VeriSign that are available to investors today. That information is available publicly through VeriSign media outlets and privately through word of mouth or via VeriSign internal channels. However, regardless of the origin, that massive amount of VeriSign data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of VeriSign news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of VeriSign relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to VeriSign's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive VeriSign alpha.

VeriSign Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards VeriSign can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

VeriSign Historical Investor Sentiment

Investor biases related to VeriSign's public news can be used to forecast risks associated with an investment in VeriSign. The trend in average sentiment can be used to explain how an investor holding VeriSign can time the market purely based on public headlines and social activities around VeriSign. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
VeriSign's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for VeriSign and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average VeriSign news discussions. The higher the estimate score, the more favorable the investor's outlook on VeriSign.

VeriSign Corporate Management

Danny McPhersonExecutive OfficerProfile
Patrick KaneSenior ServicesProfile
Scott SchnellSenior AdvisorProfile
Ellen PetrocciSenior ResourcesProfile
David AtchleyTreasury VPProfile
When determining whether VeriSign offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of VeriSign's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Verisign Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Verisign Stock:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in VeriSign. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state.
To learn how to invest in VeriSign Stock, please use our How to Invest in VeriSign guide.
You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Is Internet Services & Infrastructure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of VeriSign. If investors know VeriSign will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about VeriSign listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.131
Earnings Share
8.58
Revenue Per Share
15.467
Quarterly Revenue Growth
0.038
Return On Assets
0.4159
The market value of VeriSign is measured differently than its book value, which is the value of VeriSign that is recorded on the company's balance sheet. Investors also form their own opinion of VeriSign's value that differs from its market value or its book value, called intrinsic value, which is VeriSign's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because VeriSign's market value can be influenced by many factors that don't directly affect VeriSign's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between VeriSign's value and its price, as these two are different measures arrived at by various means. Investors typically determine if VeriSign is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, VeriSign's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.