Shares of Verisign (VRSN) moved higher on Wednesday following news that Warren Buffett’s Berkshire Hathaway (BRKA) had purchased around $15 million of the company’s stock.
Buffett, who has been raising large amounts of cash through 2024, has been actively buying shares of the internet infrastructure company.
Berkshire Hathaway already owns more than 10% of Verisign. The fund’s buy activity of the stock has been actively buying recently, spending about $45.4 million on shares on December 20. That purchase followed a pullback from the stock’s nine-month highs.
The back-to-back purchases by Berkshire Hathaway are a sign of confidence in the company's long-term growth prospects. The purchases also suggest that Buffett sees even more growing importance of internet security and stability.
VeriSign specializes in internet infrastructure and security, managing the .com and .net domain registries and ensuring DNS reliability. The company provides critical services like 100% uptime, DDoS protection, and threat intelligence.
Partnering with ICANN, VeriSign maintains the internet's root zone, supporting global connectivity and the growth of secure online operations.
Verisign shares have recently experienced a strong shift in their technical activity.\
The stock has spent all of 2024 trading in a wide range with lows at the $175 price. In November, shares initiated a bullish momentum shift that is now forecasting higher prices in 2025.
Verisign’s 50- and 200-day moving averages shifted into bullish trends in late-November as the stock started to break out of its 2024 range.
At the same time, Verisign’s stock crossed above its 20-month moving average putting the stock in a long-term bull market trend.
With positive momentum and improving fundamentals, investors should expect Verisign stock to maintain its bullish trend while targeting $225 per share over the next six months.
