OMAHA, Neb.— Berkshire Hathaway Inc . (NYSE:), led by Warren E. Buffett, has expanded its holdings in Verisign Inc . (NASDAQ:), acquiring a significant amount of shares over a three-day period. According to a recent SEC filing, Berkshire Hathaway purchased a total of 227,113 shares of Verisign’s common stock, amounting to approximately $45.4 million. The technology company, currently valued at $18.62 billion, maintains an impressive gross profit margin of 87.58% and trades at a P/E ratio of 22.5. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value assessment.
The transactions occurred between December 17 and December 19, with share prices ranging from $191.12 to $196.0041. This move increases Berkshire Hathaway’s total ownership to 13,049,925 shares.
The purchases were made indirectly, with a substantial portion of the shares held by Berkshire’s subsidiary, Government Employees Insurance Company, and its pension plans. As Berkshire is in the chain of ownership, it may be deemed to beneficially own all shares directly owned by its subsidiaries. Warren Buffett may also be considered to beneficially own these shares to the extent of his pecuniary interest.
This acquisition reflects Berkshire Hathaway’s ongoing investment strategy, as the conglomerate continues to diversify its portfolio across various sectors. Verisign, a leader in domain name registry services with a return on assets of 54.4%, represents a strategic addition to Berkshire’s extensive holdings. Detailed analysis of Verisign’s performance metrics and growth potential is available in the comprehensive Pro Research Report on InvestingPro.
In other recent news, VeriSign has experienced several significant developments. The company reported a modest revenue growth of 3.8% in its third-quarter 2024 results, reaching $391 million, and a 13.1% increase in earnings per share, which rose to $2.07. Baird recently upgraded VeriSign’s stock from Neutral to Outperform, citing improved regulatory conditions and potential for growth. Similarly, Citi reaffirmed its Buy rating for VeriSign, following the renewal of the company’s Cooperative Agreement with the National Telecommunications and Information Administration, a development seen as positive for the company’s stability.
VeriSign also renewed its .com Registry Agreement with the Internet Corporation for Assigned Names and Numbers, introducing provisions to enhance the security and stability of the .com Top-Level Domain. These recent developments come amidst a challenging market environment, with the company maintaining a steady revenue growth and earning a “GOOD” overall financial health score from InvestingPro’s comprehensive analysis system. Both Baird and Citi have expressed confidence in VeriSign’s potential to navigate these challenges, pointing to the company’s strong fundamentals and promising outlook.
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