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VeriSign, Inc. (VRSN), headquartered in Reston, Virginia, provides domain name registry services and internet infrastructure that enables internet navigation for various recognized domain names. Valued at $18 billion by market cap, the company enables the security, stability, and resiliency of key internet infrastructure and services, as well as provides root zone maintainer services.
Shares of this global provider of critical internet infrastructure and domain name registry services have underperformed the broader market considerably over the past year. VRSN has declined 12.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 24.3%. In 2024, VRSN stock is down 11.6%, while SPX is up 17.2% on a YTD basis.
Narrowing the focus, VRSN has also lagged behind the iShares U.S. Technology ETF (IYW). The exchange-traded fund has gained about 32.9% over the past year. Moreover, the ETF’s 19% gains on a YTD basis outshine the stock’s losses over the same time frame.
On Jul. 25, VRSN shares closed up more than 1% after reporting its Q2 earnings results. Its EPS increased 12.3% year over year to $2.01. The company’s revenue stood at $387.1 million, up 4.1% year over year. Moreover, VRSN concluded the quarter with 170.6 million .com and .net domain name registrations in the domain name base, down 2.2% year over year, representing a net decrease of 1.8 million domain names.
Among the two analysts covering VRSN stock, the consensus is a “Moderate Buy.” That’s based on one “Strong Buy” rating and one “Hold.”
The configuration has been consistent over the past months.
On Jul. 26, Robert W. Baird analyst Robert Oliver reiterated a “Hold” rating on VRSN with a price target of $200, implying a potential upside of 9.9% from current levels.
The mean price target of $207.50 represents a 14% premium to VRSN’s current price levels. The Street-high price target of $215 suggests an upside potential of 18.1%
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
