This Insider Has Just Sold Shares In VeriSign

We wouldn't blame VeriSign, Inc. (NASDAQ:VRSN) shareholders if they were a little worried about the fact that D. Bidzos, the Executive Chairman recently netted about US$2.5m selling shares at an average price of US$281. However, that sale only accounted for 1.8% of their holding, so arguably it doesn't say much about their conviction.

Our free stock report includes 3 warning signs investors should be aware of before investing in VeriSign. Read for free now.

The Last 12 Months Of Insider Transactions At VeriSign

In fact, the recent sale by D. Bidzos was the biggest sale of VeriSign shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$280. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year VeriSign insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for VeriSign

I will like VeriSign better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of VeriSign

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. VeriSign insiders own about US$227m worth of shares (which is 0.9% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About VeriSign Insiders?

Insiders haven't bought VeriSign stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that VeriSign is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing VeriSign. For example, VeriSign has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.