Verisk Analytics Sees $217K Insider Purchase

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Insiders have access to real-time information on their companies and often also have a wealth of experience that can help them evaluate their firms’ prospects. If they are buying company stock, it’s generally worth taking a closer look.

In this report, we are going to highlight some interesting insider buying at Verisk Analytics Inc (VRSK:US). Verisk Analytics is an American data analytics and risk assessment firm that serves the insurance industry. It aims to help its clients strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud and make informed decisions about global risks. The company is listed on the Nasdaq and currently has a market cap of approximately $31.10 billion.

Insider Buying at Verisk Analytics

2iQ data shows that on May 8, board member Wendy Lane purchased 1,037 shares at a price of $209.78 per share. This trade cost the insider  $217,541 and increased her holding to 2,057 shares.

Investment Background

Ms. Lane has an investment background. Earlier in her career, she worked in investment banking at Donaldson, Lufkin & Jenrette and Goldman Sachs, where she engaged in value creation and transactional matters across a range of industries. She left to found her own investment firm and guide companies through involvement on their boards.

She also has extensive experience in the insurance and information services industries. Named one of the most Influential Women in Reinsurance in 2014 by Intelligent Insurer, she previously served on the board of directors of Willis Towers Watson, CoreLogic, LabCorp, and MSCI.

Better-than-expected Q1 Results

Verisk Analytics recently posted better-than-expected Q1 results.

For the period, revenue came in at $651.60 million, up 9.8% on an organic constant currency basis, and above the consensus forecast of $633.33 million. Earnings per share amounted to $1.29, up 16.2% year on year, and ahead of analysts’ estimate of $1.19.

On the back of this strong performance, the company entered into and fully funded a $2.5 billion accelerated share repurchase program during the quarter.

"Verisk delivered strong revenue and EBITDA growth, demonstrating broad-based growth across most of our businesses. That in turn generated solid operating leverage. We are focused on our commitments to deliver revenue growth and margin expansion and we remain confident in our ability to achieve our stated goals for 2023 and the longer term," commented CFO Elizabeth Mann.

In light of these solid results, we see the insider buying here as a bullish development.