Stock of the Day

February 7, 2020

VeriSign (VRSN)

$231.87
-$2.01 (-0.9%)
Market Cap: $22.13B

About VeriSign

VeriSign, Inc., together with its subsidiaries, provides domain name registry services and internet infrastructure that enables internet navigation for various recognized domain names worldwide. The company enables the security, stability, and resiliency of internet infrastructure and services, including providing root zone maintainer services, operating two of thirteen internet root servers; and offering registration services and authoritative resolution for the .com and .net domains, which supports global e-commerce. It operates directory for .name and .cc; and back-end systems for .edu, domain names. VeriSign, Inc. was incorporated in 1995 and is headquartered in Reston, Virginia.

VeriSign Bull Case

Here are some ways that investors could benefit from investing in VeriSign, Inc.:

  • VeriSign, Inc. has a strong market capitalization of approximately $22.22 billion, indicating a solid position in the market and potential for growth.
  • The company reported earnings per share of $2.00, meeting analysts' expectations, which reflects its ability to generate consistent profits.
  • With a net margin of 50.47%, VeriSign, Inc. demonstrates high profitability, suggesting effective cost management and operational efficiency.
  • As of recent trading, the stock price is around $231.73, which is close to its one-year high of $232.48, indicating strong investor interest and confidence in the stock.
  • Institutional investors own 92.90% of the stock, which often signals confidence in the company's future performance and stability.

VeriSign Bear Case

Investors should be bearish about investing in VeriSign, Inc. for these reasons:

  • The company has a negative return on equity of 44.06%, which may indicate inefficiencies in generating returns for shareholders.
  • VeriSign, Inc. has a relatively high price-to-earnings ratio of 28.90, suggesting that the stock may be overvalued compared to its earnings, which could deter value-focused investors.
  • Insider ownership is only 0.84%, which may raise concerns about alignment between management and shareholder interests.
  • Recent insider selling, including a significant transaction by an executive vice president, could signal potential concerns about the company's future performance.
  • The stock's beta of 0.90 indicates lower volatility compared to the market, which may not appeal to investors seeking high-risk, high-reward opportunities.

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