Berkshire Hathaway Inc Sells 4,300,000 Shares of VeriSign, Inc. $VRSN

Key Points

• Berkshire Hathaway trimmed its VeriSign stake by 32.4%, selling 4,300,000 shares in the quarter and leaving 8,989,880 shares (about 9.7% of VeriSign) worth roughly $2.51 billion, making VRSN its 15th-largest holding.
• VeriSign's latest quarter posted EPS of $2.23 (vs. $2.29 expected) and revenue of $425.3M (+7.6% y/y), and the company raised its quarterly dividend to $0.81 (annualized $3.24, ~1.4% yield).
• Analysts have a consensus rating of Hold with an average target of $292, and insiders were net sellers last quarter (16,490 shares sold, ~$4.04M).

Berkshire Hathaway Inc trimmed its position in shares of VeriSign, Inc. (NASDAQ:VRSN - Free Report) by 32.4% during the 3rd quarter, according to its most recent 13F filing with the SEC. The fund owned 8,989,880 shares of the information services provider's stock after selling 4,300,000 shares during the quarter. VeriSign comprises about 0.9% of Berkshire Hathaway Inc's holdings, making the stock its 15th biggest holding. Berkshire Hathaway Inc owned 9.70% of VeriSign worth $2,513,301,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. Salomon & Ludwin LLC lifted its stake in shares of VeriSign by 112.5% in the third quarter. Salomon & Ludwin LLC now owns 102 shares of the information services provider's stock worth $28,000 after buying an additional 54 shares in the last quarter. Root Financial Partners LLC bought a new stake in shares of VeriSign during the third quarter valued at approximately $29,000. North Capital Inc. increased its position in shares of VeriSign by 239.0% during the third quarter. North Capital Inc. now owns 139 shares of the information services provider's stock valued at $39,000 after acquiring an additional 98 shares in the last quarter. Bruce G. Allen Investments LLC raised its holdings in VeriSign by 51.5% in the 3rd quarter. Bruce G. Allen Investments LLC now owns 147 shares of the information services provider's stock worth $41,000 after acquiring an additional 50 shares during the last quarter. Finally, Advisors Asset Management Inc. lifted its position in VeriSign by 25.3% in the 1st quarter. Advisors Asset Management Inc. now owns 198 shares of the information services provider's stock valued at $50,000 after acquiring an additional 40 shares in the last quarter. 92.90% of the stock is currently owned by institutional investors.

VeriSign Trading Up 1.5%

Shares of VRSN stock opened at $238.60 on Friday. VeriSign, Inc. has a 12-month low of $208.86 and a 12-month high of $310.60. The firm's 50 day moving average is $236.27 and its 200 day moving average is $251.14. The stock has a market capitalization of $21.88 billion, a P/E ratio of 27.08 and a beta of 0.76.

VeriSign (NASDAQ:VRSN - Get Free Report) last announced its earnings results on Thursday, February 5th. The information services provider reported $2.23 earnings per share for the quarter, missing analysts' consensus estimates of $2.29 by ($0.06). The company had revenue of $425.30 million for the quarter, compared to analysts' expectations of $424.04 million. VeriSign had a net margin of 49.84% and a negative return on equity of 40.40%. VeriSign's quarterly revenue was up 7.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.00 earnings per share.

VeriSign Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Thursday, February 19th were issued a $0.81 dividend. The ex-dividend date of this dividend was Thursday, February 19th. This is an increase from VeriSign's previous quarterly dividend of $0.77. This represents a $3.24 annualized dividend and a dividend yield of 1.4%. VeriSign's dividend payout ratio is presently 36.78%.

Wall Street Analyst Weigh In

Several brokerages have commented on VRSN. Weiss Ratings reiterated a "hold (c+)" rating on shares of VeriSign in a research note on Monday, December 29th. JPMorgan Chase & Co. boosted their price target on VeriSign from $270.00 to $271.00 and gave the stock a "neutral" rating in a research note on Tuesday, January 6th. Citigroup lowered their price target on VeriSign from $337.00 to $280.00 and set a "buy" rating on the stock in a report on Monday, February 9th. Finally, Zacks Research raised VeriSign from a "strong sell" rating to a "hold" rating in a research report on Monday, February 9th. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, VeriSign presently has a consensus rating of "Hold" and an average target price of $292.00.

Insiders Place Their Bets

In other VeriSign news, CEO D James Bidzos sold 2,000 shares of the stock in a transaction dated Wednesday, January 14th. The stock was sold at an average price of $248.28, for a total value of $496,560.00. Following the transaction, the chief executive officer owned 414,099 shares of the company's stock, valued at approximately $102,812,499.72. This represents a 0.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Thomas C. Indelicarto sold 332 shares of the firm's stock in a transaction dated Tuesday, March 10th. The stock was sold at an average price of $240.62, for a total value of $79,885.84. Following the completion of the transaction, the executive vice president directly owned 39,696 shares in the company, valued at $9,551,651.52. The trade was a 0.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 16,490 shares of company stock valued at $4,036,071. 0.84% of the stock is owned by company insiders.

About VeriSign

VeriSign, Inc NASDAQ: VRSN is an internet infrastructure company that operates critical components of the global Domain Name System (DNS) and provides cybersecurity-related services. The company is best known as the authoritative registry operator for the .com and .net top-level domains, maintaining the central databases and zone files that enable domain name resolution for millions of websites. VeriSign's registry role is performed under contractual agreements with Internet Corporation for Assigned Names and Numbers (ICANN) and involves high-availability, highly secure operations to support continuous internet connectivity.

In addition to its registry business, VeriSign offers a suite of services designed to protect and accelerate DNS and internet traffic for enterprises and service providers.

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