Verisk Analytics Slides 2.7% as Mixed Earnings and 374th-Ranked Volume Signal Investor Caution

Market Snapshot

On November 5, 2025, Verisk Analytics (VRSK) closed with a 2.70% decline, trading at $215.40 per share. The stock saw a trading volume of $0.37 billion, ranking 374th in dollar volume among U.S. equities on the day. This drop followed a mixed earnings report, with the company posting $1.72 earnings per share (EPS) in the third quarter—slightly above estimates—but revenue of $768.30 million fell short of expectations. The stock’s 52-week range spans $196.99 to $322.92, and its market capitalization stands at $30.02 billion. The recent performance reflects broader analyst caution, with an average rating of “Hold” and a consensus target price of $282.14.

Key Drivers

Institutional Investor Activity and Insider Purchases

Significant institutional buying and insider transactions have underscored confidence in Verisk Analytics. Advisors Preferred LLC increased its stake by 322.3% in Q2, acquiring 7,555 additional shares to hold 9,899 shares valued at $3.1 million. Other institutional investors, including Hantz Financial Services and GW&K Investment Management, also bolstered their positions. Meanwhile, insider purchases by directors Gregory Hendrick, Jeffrey Dailey, and Sabra Purtill totaled 2,450 shares, valued at $574,463, signaling management’s belief in the stock’s long-term potential. These moves contrast with insider sales by Nicholas Daffan, who reduced his holdings by 9.07%, reflecting a mixed sentiment among key stakeholders.

Dividend Announcement and Valuation Metrics

Verisk Analytics announced a quarterly dividend of $0.45 per share, yielding 0.8% annually. While the payout ratio of 27.44% suggests a conservative approach, the dividend’s announcement may have limited downside pressure in the short term. The stock’s valuation remains elevated relative to industry benchmarks, with a price-to-earnings (P/E) ratio of 32.84 and a PEG ratio of 2.75, indicating potential overvaluation compared to historical averages. GuruFocus estimates the stock’s intrinsic value at $302.65, implying a modest undervaluation based on historical multiples and growth projections. These metrics suggest investors are factoring in long-term growth but remain cautious about near-term risks.

Analyst Sentiment and Earnings Outlook

Analyst ratings for VRSK have been mixed, reflecting diverging views on the company’s growth trajectory. Barclays upgraded the stock to “overweight” with a $275 target, while Rothschild Redb downgraded it to “strong sell.” The average rating remains “Hold,” with seven “Buy” ratings, six “Hold,” and three “Sell” ratings. Earnings guidance for FY 2025 at $6.80–$7.00 EPS aligns with analysts’ expectations of $6.63, suggesting a stable outlook. However, recent revenue growth of 5.9% year-over-year, coupled with slightly below-estimate revenue in Q3, has tempered optimism. The stock’s beta of 0.85 indicates lower volatility than the market, which may attract defensive investors but limits upside potential in a bullish market.

Strategic Developments and Sector Dynamics

Verisk Analytics’ core business in insurance data analytics and catastrophe modeling remains resilient, with clients relying on its predictive tools for risk assessment. Institutional ownership at 90% underscores the stock’s appeal to long-term investors, though the high debt-to-equity ratio of 8.55 raises concerns about leverage. Competitors in the sector, such as CoStar Group and Financial Institutions, have seen mixed performance, with Baron Focused Growth Fund highlighting Verisk’s slower revenue growth as a drag. Meanwhile, the company’s recent foray into AI-driven solutions and partnerships with reinsurers position it to benefit from industry trends, though execution risks persist.

Market Context and Comparative Performance

Verisk Analytics’ recent 2.70% drop outperformed broader market declines, as the S&P 500 fell 1.20% on the same day. The stock’s 50-day moving average of $247.45 and 200-day average of $279.75 suggest a bearish trend, with current prices trading below both benchmarks. While the company’s 5.9% revenue growth is robust, it lags behind peers in the insurance technology sector, which have seen double-digit revenue increases. The stock’s performance is also influenced by macroeconomic factors, including rising interest rates and regulatory scrutiny in the insurance industry. These dynamics highlight the interplay between company-specific fundamentals and external market forces.