VeriSign Executive VP of Technology & Chief Security Officer Danny McPherson Sells 32% Of Holding

We wouldn't blame VeriSign, Inc. (NASDAQ:VRSN) shareholders if they were a little worried about the fact that Danny McPherson, the Executive VP of Technology & Chief Security Officer recently netted about US$1.3m selling shares at an average price of US$231. That sale reduced their total holding by 32% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for VeriSign

VeriSign Insider Transactions Over The Last Year

Notably, that recent sale by Danny McPherson is the biggest insider sale of VeriSign shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$232. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 32% of Danny McPherson's holding.

In the last year VeriSign insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of VeriSign

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that VeriSign insiders own 0.9% of the company, worth about US$206m. 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. And there weren't any purchases to give us comfort, over the last year. But since VeriSign is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that VeriSign is showing 3 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...

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.