Stock Analysis | Verisk Analytics Outlook - Mixed Signals Amid Weak Technicals and Strong Fund Flows

Market Snapshot – Watch for Volatility as Technicals Signal Avoidance

Verisk Analytics (VRSK) is showing a mixed profile: while recent money flows are broadly positive and fundamentals have some positive readings, the technical side is weak, with an internal diagnostic score of 2.19 and clear bearish signals dominating. The stock has seen a recent price increase of 2.23%, but that trend contrasts with most analyst expectations.

News Highlights – Distant Legal and Sports Developments

• UFC Antitrust Lawsuit (May 30): A new antitrust lawsuit filed by Berger Montague against the UFC could influence broader sports and entertainment regulatory dynamics, though the direct impact on VRSK remains unclear.
• MLB Partnership with Professional Softball League (May 29 & May 31): This development could boost visibility for women’s sports, potentially enhancing advertising and media data opportunities, which may be relevant to VRSK’s data analytics services.
• DexCom’s FDA Approval (May 28): While not directly related to VRSK, it reflects growing healthcare tech trends that could indirectly benefit analytics-driven insurance and risk modeling firms like Verisk.

Analyst Views & Fundamentals – Strong Historical Rating, But Mixed Consensus

Analysts have been active recently. The simple average rating of recent recommendations is 4.00, but the weighted average rating—factoring in historical performance—is lower at 2.77. This suggests a “differences” pattern in analyst consensus, with some optimism but also caution. Notably, Wolfe Research analyst Scott Wurtzel gave a Buy rating on September 3, backed by a 100.0% historical win rate over 1 prediction. However, the current price rise of 2.23% is at odds with the overall weighted expectations, indicating potential misalignment.

Key Fundamental Values and Model Scores:

• Operating Revenue YoY Growth Rate: 7.38% (Internal diagnostic score: 3.1)
• Price-to-Sales (PS) Ratio: 67.51 (Score: 2.2)
• Price-to-Cash Flow (PCF) Ratio: 213.34 (Score: 1.9)
• Non-Current Liabilities / Total Liabilities: 79.93% (Score: 1.9)
• Current Assets Turnover Ratio: 1.33 (Score: 1.9)
• Long-Term Debt to Working Capital Ratio: 7.50% (Score: 2.2)

While there are some positive growth signals in operating revenue, most financial metrics show elevated risk and poor efficiency, reflected in low internal diagnostic scores.

Money-Flow Trends – Institutional and Retail Capital Flowing In

Money flow for VRSK shows a broadly positive trend across all investor categories. The overall inflow ratio is 51.80%, with institutional (block) inflow at 51.91%, and even retail segments like small and medium investors showing inflow ratios above 50%. The fund-flow score is 7.77, labeled as “good”, indicating strong demand from both big money and retail investors.

Key Technical Signals – Bearish Momentum Dominates

Technically, VRSK is underperforming. In the last 5 days, bearish patterns like the Marubozu White on September 3, and Bearish Engulfing on September 2 have emerged. These patterns are flagged as “Biased bearish” with internal diagnostic scores as low as 1.0 (Marubozu White) and 2.1 (Bearish Engulfing). The MACD Golden Cross, usually a bullish signal, has an internal score of 2.2 and is rated “Neutral bias”, showing its signal is weak or inconsistent.

Overall, there are 5 bearish indicators and 0 bullish, with the score evaluation stating: “The technical side is weak, and it is suggested to avoid it.” The trend is clearly down, and momentum appears fragile.

Conclusion – Wait for Technical Clarity Before Entering

While Verisk Analytics has shown positive money flows and some fundamental growth signals, the technical outlook is weak with bearish momentum dominating. Given the low technical score of 2.19 and conflicting analyst ratings, traders and investors should consider waiting for a pull-back or clearer technical confirmation before taking new long positions. A reversal in these bearish indicators or a strong earnings report could signal a turning point for VRSK in the near term.