Verisign Inc . (NASDAQ:VRSN), the global leader in domain name registration and internet security with an impressive market capitalization of $20.45 billion, has reached a new 52-week high, with its stock price soaring to $213.62. According to InvestingPro data, the company maintains remarkable gross profit margins of 87.58%. This milestone reflects a robust performance over the past year, with the company's stock witnessing a 7.07% increase in value. InvestingPro analysis indicates the stock generally trades with low price volatility, though current RSI readings suggest it may be in overbought territory. Investors have shown growing confidence in Verisign's strategic initiatives and its core business, which continues to benefit from the increasing demand for secure digital infrastructure. For deeper insights, including 10+ additional ProTips and comprehensive analysis, explore the Pro Research Report available on InvestingPro. The company's ability to maintain a strong foothold in the domain registration market has been a key driver of its financial success, leading to this impressive 52-week high achievement. With a P/E ratio of 24.46 and steady revenue growth of 4.08%, the company continues to demonstrate solid financial performance.
In other recent news, Berkshire Hathaway (NYSE:BRKa) has increased its investments in Occidental Petroleum (NYSE:OXY), Sirius XM Holdings (NASDAQ:SIRI), and VeriSign. The investment conglomerate purchased approximately 8.9 million shares of Occidental Petroleum, five million shares of Sirius XM Holdings, and about 234,000 shares of VeriSign. These transactions resulted in Berkshire Hathaway owning over 28% of Occidental Petroleum, and more than 13% of VeriSign. This buying activity is seen as a vote of confidence in these companies' prospects.
On the other hand, Baird upgraded VeriSign's stock from Neutral to Outperform, indicating confidence in the company's potential for growth. Citi also reaffirmed its Buy rating for VeriSign, following the renewal of the company's Cooperative Agreement with the National Telecommunications and Information Administration (NTIA). This agreement governs the pricing of .com domains, a significant part of VeriSign's offerings.
VeriSign has also renewed its .com Registry Agreement with the Internet Corporation for Assigned Names and Numbers (ICANN). This updated contract introduces provisions to enhance the security and stability of the .com Top-Level Domain. The agreement maintains the current pricing structure for .com domain names, with no changes to the cost that VeriSign can charge.
In its recent earnings call, VeriSign reported a modest revenue growth of 3.8% to $391 million in its third-quarter 2024 results. The company's earnings per share increased by 13.1% to $2.07. For the full year of 2024, VeriSign expects revenue to be between $1.554 billion and $1.559 billion, with operating income projected between $1.054 billion and $1.059 billion. Despite a decline in its total domain name base and projected lower renewal rates, the company remains committed to returning excess cash to shareholders.
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