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Warren Buffett's Berkshire Increases Stake in Verisign

August 04, 2014 | About:

Holly LaFon

267 followers

Warren Buffett (Trades, Portfolio)’s company Berkshire Hathaway (BRK.A)(BRK.B) has increased his holding of Verisign (VRSN), according to GuruFocus Real Time Picks.

Berkshire added 11.12% to their position, increasing the stake from 11,685,654 shares to 12,985,000, or 10.4% of the company. The priced closed at $54.05 per share on July 31, the day of the transaction. Versign shares have declined 10% year to date, and are off of a $62.96 52-week high reached in January.

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Berkshire began purchasing Verisign in the fourth quarter of 2014, when the price averaged $42 and has been adding to the position since.

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Verisign gives companies reliable and secure domain names and has a $6.79 billion market cap.

The company’s stock jumped in July when it reported its second quarter results. Verisign made revenue of $250 million, a 4.6% year-over-year increase. Its net income reached $100 million, compared to $87 million a year prior.

The company ended the quarter with $1.5 billion in cash, decreased by $178 million at year-end 2013. On July 23, Verisign announced a share repurchase authorization of $491 million, raising its existing total authorization to $1 billion, with no expiration.

Verisign has a P/E of 14, close to a five-year low. It also has a P/S ratio of 7.99, close to a one-year low.

For more Warren Buffett (Trades, Portfolio) stocks, visit Berkshire’s portfolio here.

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Rating: 4.8/5 (4 votes)

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Comments

hvt2107
Hvt2107 - 2 months ago
Warren Buffett (Trades, Portfolio)'s VeriSign is analogous to Peter Lynch's automatic data processing.

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