Stock Analysis | Verisk Analytics Outlook - A Bearish Technical Picture Despite Mixed Analyst Views

1. Market Snapshot

Takeaway: The technical indicators for Verisk Analytics (VRSK) are largely bearish, with four negative signals against zero bullish ones, suggesting a weak market state and a high risk of decline. The internal diagnostic score for technical analysis is 2.15, which is very low.

2. News Highlights

Recent news related to VRSK hasn't directly addressed the company's business, but some developments in the broader market could have indirect effects. For example:

• MLB Announces Partnership With New Professional Softball League: This news could reflect broader growth in the professional sports sector. While Verisk Analytics is not directly involved, it shows a positive trend in sectors where Verisk might have indirect insurance or risk analytics exposure.
• FDA Approves DexCom G4 Platinum Professional Continuous Glucose Monitoring System: This is an example of regulatory approval for a medical device. Though unrelated to Verisk’s core operations, such approvals often highlight growing demand for professional-level healthcare solutions, which could indirectly align with Verisk’s risk analytics in healthcare.
• Chase Buchanan Wealth Management Becomes CII International Professional Partner: This is more about financial services but highlights the importance of professional services in the global market. Verisk Analytics, as a provider of data and analytics, could be seen as part of this growing professional services trend, but the direct impact is minimal.

3. Analyst Views & Fundamentals

Analyst ratings and performance:

• Average Rating (Simple Mean): 3.33, indicating a neutral stance overall.
• Weighted Rating (Performance-Weighted): 2.20, showing a more bearish lean when adjusted for historical accuracy.
• Rating Consistency: The ratings are not in agreement. UBS and Morgan Stanley gave “Neutral” ratings, while Raymond James gave a “Buy” rating. UBS and Morgan Stanley have a perfect historical win rate (100%), but Raymond James has a win rate of 0%.

Key Fundamental Factors (values only):

• Shareholders’ equity attributable to parent company / Total liabilities (%): 6.95% (score: 1.00 – internal diagnostic score).
• Total operating revenue (YoY growth rate %): 7.38% (score: 2.00).
• Equity multiplier: 15.38 (score: 0.00).
• Equity ratio (Total liabilities / Shareholders’ equity attributable to parent company) (%): 14.38% (score: 3.00).
• Current assets turnover ratio: 1.33 (score: 1.00).
• Long-term debt to working capital ratio (%): 7.50% (score: 1.00).
• Operating revenue (YoY growth rate %): 7.38% (score: 1.00).
• Total assets turnover ratio: 0.34 (score: 0.00).
• Current assets / Total assets (%): 28.73% (score: 0.00).
• Cash-MV: -1.26 (score: 0.00).

4. Money-Flow Trends

Money flows for VRSK show a negative trend across all investor categories. The fund flow score is 7.49 (internal diagnostic score), indicating a relatively good trend in terms of fund flow strength but conflicting with the weak technical picture. Here's the breakdown:

• Small investor inflow ratio: 48.53%
• Medium investor inflow ratio: 48.59%
• Large investor inflow ratio: 46.26%
• Extra-large investor inflow ratio: 46.44%
• Overall inflow ratio: 46.61%
• Block investor inflow ratio: 46.38%

This indicates that big money is somewhat more cautious than retail investors, as block and extra-large investor inflow ratios are slightly lower than the average. However, all categories show a negative trend, suggesting caution across the board.

5. Key Technical Signals

Technical indicators for VRSK are largely bearish, with four negative signals and no bullish ones. The internal diagnostic score is 2.15, which is very weak. Here are the key signals:

• WR Oversold: Score 3.07 – a neutral rise signal, indicating a potential rebound but not a strong bullish signal.
• RSI Oversold: Score 3.52 – also a neutral rise signal.
• Bearish Engulfing: Score 1.00 – a strong bearish signal with a historical win rate of 28.57% and an average return of 0.26%.
• Marubozu White: Score 1.00 – another bearish signal, with a historical win rate of 30.77% and an average return of -0.81%.

Recent Patterns by Date:

• 20250811: WR Oversold
• 20250812: WR Oversold, RSI Oversold
• 20250806: WR Oversold, RSI Oversold
• 20250808: WR Oversold, Marubozu White, RSI Oversold
• 20250807: WR Oversold, Bearish Engulfing, RSI Oversold

The recent chart patterns are dominated by bearish signals, especially the Bearish Engulfing and Marubozu White patterns. These suggest a strong downward momentum and poor trend quality.

6. Conclusion

Actionable Takeaway: Given the bearish technical indicators and the weak internal diagnostic score of 2.15, we recommend investors to avoid VRSK at this time. Despite the mixed analyst views and the positive fund flow score, the technical picture is the most critical factor here. If you are already holding the stock, it may be prudent to reconsider your position or set a stop-loss to protect against further downside.