Here's a classic move in the corporate finance playbook: when you believe your stock is undervalued and you have the cash, you buy it back. Verisk Analytics Inc. (VRSK) is doing just that, but on an accelerated timeline. The data analytics firm announced on Monday that it has entered into agreements to repurchase $1.5 billion of its own common stock through an accelerated share buyback program.
This isn't a spur-of-the-moment decision. It follows the board's approval just last week to boost the company's total share repurchase authorization to a hefty $2.5 billion. The message from management is clear: they're confident in Verisk's ability to generate cash and see solid long-term growth ahead. It's a vote of confidence in the company's own future, paid for with its own money.
The mechanics involve two banks—HSBC Bank USA and Wells Fargo Bank. They're expected to deliver roughly 7 million shares to Verisk upfront. After this $1.5 billion bite, the company will still have about $1 billion left in its buyback allowance for future maneuvers. The whole transaction is slated to be wrapped up by the end of the third fiscal quarter on September 30, 2026.
Beyond just returning capital to shareholders, Verisk says these buybacks are about boosting operational efficiency and strengthening its market position. The company's core business remains leveraging its data analytics to serve the global insurance industry.
The buyback news comes on the heels of the company's latest financial report. Last week, Verisk posted fourth-quarter adjusted earnings per share of $1.82, beating the analyst estimate of $1.60. Revenue came in at $778.8 million, also topping the consensus expectation of $773.6 million. Looking ahead, the company issued guidance for fiscal 2026, projecting adjusted EPS in the range of $7.45 to $7.75. The consensus estimate had been $7.71. On revenue, Verisk expects $3.19 billion to $3.24 billion, compared to a Wall Street estimate of $3.28 billion.
What the Charts Are Saying
From a technical perspective, the stock shows some near-term softness. It's currently trading 9.8% below its 20-day simple moving average and 4.1% below its 100-day average. Over the past year, shares have declined and are positioned closer to their 52-week lows than their highs.
The Relative Strength Index (RSI) sits at 44.45, which is considered neutral—not signaling an overbought or oversold condition. However, the Moving Average Convergence Divergence (MACD) indicator is at 0.15, which is below its signal line of 0.22, suggesting some bearish pressure. The takeaway? Mixed momentum for now.
- Key Resistance: $200.00
- Key Support: $164.50
