Warren Buffett (Trades, Portfolio)’s company Berkshire Hathaway (BRK.A, Financial)(BRK.B, Financial) has increased his holding of Verisign (VRSN, Financial), 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.
Berkshire began purchasing Verisign in the fourth quarter of 2014, when the price averaged $42 and has been adding to the position since.
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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