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Verisk Analytics (VRSK) Up 7.5% in a Year: What's Behind It?
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Shares of Verisk Analytics, Inc. (VRSK - Free Report) have surged 7.5% over the past year, outperforming the 8% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Let’s delve deeper into factors that have contributed to the company’s price performance.
Consecutive Earnings Beat
Verisk reported better-than-expected earnings performance in the last two quarters. This encouraging performance can be attributed to organic growth within the business, lower interest expenses and lower average share count.
Dividend Hike
Verisk’s board of directors has recently approved a dividend hike of 6.9%, thereby raising the quarterly cash dividend from 29 cents per share to 31 cents. The raised dividend will be paid on Mar 31, 2022, to shareholders of record as of Mar 15, 2022. Further, the company's board has approved an additional share repurchase authorization of $1 billion. As of Dec 31, 2021, the company had $603.8 million available under its share repurchase authorization
Notably, Verisk has a consistent record of rewarding its shareholders through dividend payments and share repurchases. In 2021, Verisk paid $188.2 million in dividends and repurchased shares worth $475 million. In 2020, the company paid $175.8 million in dividends and repurchased shares worth $348.8 million. In 2019, the company paid $163.5 million in dividends and repurchased shares worth $300 million. Such moves indicate the company’s commitment to create value for shareholders and underline its confidence in its business. These initiatives not only instill investor confidence but also positively impact the company’s earnings per share.
Strategic Acquisitions Bode Well
Acquisitions form a key part of Verisk’s growth strategy. The company has been continuously acquiring and investing in companies globally to expand its data and analytics capabilities across industries.
In 2021, Verisk completed a number of significant acquisitions. It bought Data Driven Safety in November to boost its robust auto insurance analytics while Ignite Software Systems Limited was acquired in September. The Roskill Holdings Limited buyout in June was made in order to enhance offerings across the energy, and metals and mining value chain, while adding analysis, data, and insight. Along with the assets and capabilities of 4C Solutions, Whitespace Software Limited was acquired in March for expansion into the group life insurance market.
In 2020, Verisk completed the purchase of Franco Signor, which became part of the company’s Claims Partners business and should help it strengthen its foothold in the Medicare space.
In 2019, Verisk completed seven acquisitions — FAST to enhance its data and analytics solutions in life insurance and annuities market; Commerce Signals to enhance its Financial Services segment; BuildFax to boost its Insurance segment; Genscape to expand its Wood Mackenzie business line’s existing intelligence in energy data and analytics; Keystone Aerial Surveys to expand its aerial survey services; Property Pres Wizard to enhance its Insurance segment; and SAP’s Content as a Service business to strengthen its environmental health and safety services and expand its global customer footprint and European operations.
Some other stocks in the broader Business Services sector that investors may consider are Cross Country Healthcare (CCRN - Free Report) , Accenture (ACN - Free Report) and Charles River (CRAI - Free Report) . While Cross Country Healthcare sports a Zacks Rank #1, Accenture and Charles River carry a Zacks Rank #2 (Buy) at present.
Cross Country Healthcare has a trailing four-quarter earnings surprise of 41.5%, on average.
Cross Country Healthcare’s shares have surged 68% in the past year. The company has a long-term earnings growth of 6.5%.
Accenture has an expected earnings growth rate of 19.8% for the current year. The company has a trailing four-quarter earnings surprise of 5.3%, on average.
Accenture’s shares have surged 26% in the past year. The company has a long-term earnings growth of 10%.
Charles River has a trailing four-quarter earnings surprise of 43.2%, on average.
Charles River’s shares have surged 29.9% in the past year. The company has a long-term earnings growth of 15.5%.
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Verisk Analytics (VRSK) Up 7.5% in a Year: What's Behind It?
Shares of Verisk Analytics, Inc. (VRSK - Free Report) have surged 7.5% over the past year, outperforming the 8% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Let’s delve deeper into factors that have contributed to the company’s price performance.
Consecutive Earnings Beat
Verisk reported better-than-expected earnings performance in the last two quarters. This encouraging performance can be attributed to organic growth within the business, lower interest expenses and lower average share count.
Dividend Hike
Verisk’s board of directors has recently approved a dividend hike of 6.9%, thereby raising the quarterly cash dividend from 29 cents per share to 31 cents. The raised dividend will be paid on Mar 31, 2022, to shareholders of record as of Mar 15, 2022. Further, the company's board has approved an additional share repurchase authorization of $1 billion. As of Dec 31, 2021, the company had $603.8 million available under its share repurchase authorization
Notably, Verisk has a consistent record of rewarding its shareholders through dividend payments and share repurchases. In 2021, Verisk paid $188.2 million in dividends and repurchased shares worth $475 million. In 2020, the company paid $175.8 million in dividends and repurchased shares worth $348.8 million. In 2019, the company paid $163.5 million in dividends and repurchased shares worth $300 million. Such moves indicate the company’s commitment to create value for shareholders and underline its confidence in its business. These initiatives not only instill investor confidence but also positively impact the company’s earnings per share.
Strategic Acquisitions Bode Well
Acquisitions form a key part of Verisk’s growth strategy. The company has been continuously acquiring and investing in companies globally to expand its data and analytics capabilities across industries.
In 2021, Verisk completed a number of significant acquisitions. It bought Data Driven Safety in November to boost its robust auto insurance analytics while Ignite Software Systems Limited was acquired in September. The Roskill Holdings Limited buyout in June was made in order to enhance offerings across the energy, and metals and mining value chain, while adding analysis, data, and insight. Along with the assets and capabilities of 4C Solutions, Whitespace Software Limited was acquired in March for expansion into the group life insurance market.
In 2020, Verisk completed the purchase of Franco Signor, which became part of the company’s Claims Partners business and should help it strengthen its foothold in the Medicare space.
In 2019, Verisk completed seven acquisitions — FAST to enhance its data and analytics solutions in life insurance and annuities market; Commerce Signals to enhance its Financial Services segment; BuildFax to boost its Insurance segment; Genscape to expand its Wood Mackenzie business line’s existing intelligence in energy data and analytics; Keystone Aerial Surveys to expand its aerial survey services; Property Pres Wizard to enhance its Insurance segment; and SAP’s Content as a Service business to strengthen its environmental health and safety services and expand its global customer footprint and European operations.
Zacks Rank and Stocks to Consider
Verisk currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other stocks in the broader Business Services sector that investors may consider are Cross Country Healthcare (CCRN - Free Report) , Accenture (ACN - Free Report) and Charles River (CRAI - Free Report) . While Cross Country Healthcare sports a Zacks Rank #1, Accenture and Charles River carry a Zacks Rank #2 (Buy) at present.
Cross Country Healthcare has a trailing four-quarter earnings surprise of 41.5%, on average.
Cross Country Healthcare’s shares have surged 68% in the past year. The company has a long-term earnings growth of 6.5%.
Accenture has an expected earnings growth rate of 19.8% for the current year. The company has a trailing four-quarter earnings surprise of 5.3%, on average.
Accenture’s shares have surged 26% in the past year. The company has a long-term earnings growth of 10%.
Charles River has a trailing four-quarter earnings surprise of 43.2%, on average.
Charles River’s shares have surged 29.9% in the past year. The company has a long-term earnings growth of 15.5%.