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Verisk Analytics Inc . (NASDAQ:VRSK) CEO Shavel Lee recently sold a total of $567,200 worth of the company's common stock, according to a recent SEC filing. The transactions, which occurred on November 15 and November 18, involved the sale of 2,000 shares at prices ranging from $280.71 to $286.49 per share. Following these sales, Lee retains ownership of 53,163 shares in the company. The sales were conducted under a pre-established 10b5-1 trading plan, which was set up on December 4, 2023.
In other recent news, Verisk Analytics demonstrated a robust financial performance in the third quarter of 2024, with consolidated revenue increasing by 7% to $725 million. This growth was primarily driven by a 9.1% rise in subscription revenues, reflecting the company's successful transition to a subscription-based model. This transition, however, led to a decline in transaction revenues.
Verisk's income from continuing operations also witnessed a significant rise, reaching $220 million, resulting in a 19.4% increase in diluted GAAP earnings per share to $1.54. The company returned a notable $455 million to shareholders, including a $400 million accelerated share repurchase program.
In terms of future expectations, Verisk anticipates 2024 consolidated revenue to be between $2.84 billion and $2.9 billion, with adjusted EBITDA expected to range from $1.54 billion to $1.6 billion. BMO Capital Markets, after reviewing these recent developments, raised its price target for Verisk to $276, maintaining a Market Perform rating on the stock.
Despite potential challenges in 2025, Verisk remains optimistic due to its subscription momentum and premium growth. CEO Lee Shavel also mentioned the company's exploration of further inorganic growth opportunities in international markets.
InvestingPro Insights
While Verisk Analytics Inc. (NASDAQ:VRSK) CEO Shavel Lee's recent stock sale might raise eyebrows, a closer look at the company's financials and market position reveals a more nuanced picture. According to InvestingPro data, Verisk boasts a market capitalization of $39.49 billion, reflecting its significant presence in the analytics industry.
The company's financial health appears robust, with a revenue of $2.82 billion in the last twelve months as of Q3 2024, representing a 7.16% growth. This steady revenue increase aligns with one of the InvestingPro Tips, which notes that 7 analysts have revised their earnings upwards for the upcoming period, suggesting positive expectations for Verisk's future performance.
Verisk's profitability metrics are particularly noteworthy. The company maintains impressive gross profit margins, as highlighted by an InvestingPro Tip. This is evidenced by the gross profit margin of 68.24% in the last twelve months, indicating strong pricing power and operational efficiency.
It's worth noting that Verisk trades at a P/E ratio of 43.47, which some might consider high. However, another InvestingPro Tip points out that the company is trading at a low P/E ratio relative to near-term earnings growth, with a PEG ratio of 0.46. This suggests that despite the seemingly high P/E, Verisk's stock might still be undervalued when considering its growth prospects.
For investors seeking more comprehensive analysis, InvestingPro offers 15 additional tips on Verisk Analytics, providing a deeper understanding of the company's financial position and market outlook.
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