VeriSign Inc. (VRSN) shares are trading at lower $200.80 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $240.57.
To add more color to this target, the company’s high over the last year is $221.30 and the low is $148.77. Over the last 52 weeks, VRSN is up 8.11% while the S&P 500 is up 15.12%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, VRSN reported a profit of $272.86 million. VeriSign Inc. also saw revenues increase to $317.88 million. In addition, VRSN has free cash flow of $498.03 million as of 09-2020. The company’s EBITDA came in at $217.52 million which compares well with its peers.
VRSN booked profit margins of 63.30%, its Return on Equity (ROE) is -54.90%, and its Return on Assets is 43.10%. All told, it is clear that, VRSN needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. VRSN has a short ratio of 1.62 and outstanding shares of 115.35M.
VRSN has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.59 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 6.74. VeriSign Inc. VRSN also noted assets of $1.76 billion at the end of the last quarter. Investors should also keep an eye on sector updates as VRSN has historically followed its peers on positive news.
All told, VeriSign Inc. VRSN has strung together solid data and demonstrated underlying fundamentals. At its current valuation, VRSN represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
VeriSign Inc. VRSN is now commanding a market cap of 23.20B and a float of 113.32M. VRSN is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of VRSN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in VRSN, either long or short, and we have not been compensated for this article.