Warren Buffett’s Berkshire Hathaway, which is a major provider of Internet domain-name registry service, has increased its stake in VeriSign as the year draws to a conclusion.
The company purchased 76,487 additional shares from VeriSign between December 26 and December 30. This brings its total number of shares to 13,27 million.
Geico, Berkshire’s insurance division, now holds 7.99 millions shares. This is according to an SEC filing.
The acquisition of VeriSign by Berkshire Hathaway, which holds more than 10 percent of its outstanding shares, strengthens Berkshire Hathaway as the largest shareholder in VeriSign.
Why is Berkshire Investment in VeriSign intriguing?
Berkshire Hathaway has steadily increased its interest in VeriSign throughout the year 2024.
In Q1 this year, the company started buying shares and now has a stake of nearly 14 percent in VeriSign.
Berkshire has made a strategic investment, but its actions are notable as VeriSign was largely absent in the market’s rally.
VeriSign stock is relatively flat both in 2023 and in 2024, despite the S&P 500’s over 50% increase in the last two years. It struggles to keep up with the market.
Buffett continues to buy VeriSign stock in response to a broader recovery in the market. Other Berkshire investment stocks, such as Occidental Petroleum, and Sirius XM Holdings, have also seen an increase.
VeriSign’s stock rose modestly on Tuesday by 2%, to $209.03, after an increase of 0.6% on Monday.
The stock has risen by more than 9% since December.
VeriSign stock performance: Why Buffett might have invested.
VeriSign is still below the record set by December 2021, despite these recent gains.
Stocks are down 21% since their peak and only 2% from the start of this year.
Technically, this stock has recently broken out over a price level of $202.74.
The price movement, coupled with the 73 Composite rating from
Investor’s Business Daily
The stock is still behind the market, but it shows potential to rebound.
VeriSign’s impressive financial performance could be one reason for Buffett to show interest.
VeriSign, along with Nvidia, holds the 5th spot for highest profit margins in S&P 500 as of the third quarter 2024.
Berkshire Hathaway also has high operating margins and gross profit margins that are appealing to investors who have a long-term perspective.
The post Berkshire Hathaway’s big bet on VeriSign 2025 will change as new information becomes available.
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