Verisk Analytics (VRSK) Retreated in Q3 Following a Strong First Half

Conestoga Capital Advisors, an asset management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their momentum that began in early April, reaching new all-time highs in the third quarter. The Mid Cap Composite returned -3.2% net-of-fees in the third quarter, compared to a 2.8% gain for the Russell Midcap Growth Index. The strategy’s focus on high-quality, profitable companies struggled to keep pace in the quarter amid risk-on dominance. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its third-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Verisk Analytics, Inc. (NASDAQ:VRSK). Verisk Analytics, Inc. (NASDAQ:VRSK) offers data analytics and technology solutions to the insurance industry. The one-month return of Verisk Analytics, Inc. (NASDAQ:VRSK) was -2.17%, and its shares lost 11.42% of their value over the last 52 weeks. On October 21, 2025, Verisk Analytics, Inc. (NASDAQ:VRSK) stock closed at $237.03 per share, with a market capitalization of $33.117 billion.

Conestoga Capital Advisors stated the following regarding Verisk Analytics, Inc. (NASDAQ:VRSK) in its third quarter 2025 investor letter:

"Verisk Analytics, Inc. (NASDAQ:VRSK) provides data analytics and decision-support solutions, primarily for the insurance industry. VRSK’s stock retreated significantly in the 3Q after a very solid 1H25. The company reported a very solid 2Q with organic revenue growth of 7.9%. Verisk’s second-quarter results came in ahead of “Street” expectations across revenue, adjusted EBITDA, adjusted EBITDA margin, and adjusted EPS. Alongside its earnings release the company announced the $2.5 billion acquisition of AccuLynx, a SAAS-based software business. Investors paused on the 15x revenue multiple the company paid for this asset. The stock’s decline also reflects moderating organic growth expectations for the back half of the year."

Verisk Analytics, Inc. (NASDAQ:VRSK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 49 hedge fund portfolios held Verisk Analytics, Inc. (NASDAQ:VRSK) at the end of the second quarter, compared to 45 in the previous quarter. In the second quarter of 2025, Verisk Analytics, Inc. (NASDAQ:VRSK) generated $773 million in revenue, representing an increase of 7.8% from Q2 2024. While we acknowledge the potential of Verisk Analytics, Inc. (NASDAQ:VRSK) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Verisk Analytics, Inc. (NASDAQ:VRSK) and shared the list of best beaten down stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.