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Valued at $23.2 billion by market cap, Reston, Virginia-based VeriSign, Inc. (VRSN) provides internet infrastructure services that include domain name registry and infrastructure assurance services, enabling internet navigation for various recognized domain names worldwide.
Companies worth $10 billion or more are generally categorized as “large-cap stocks,” VeriSign fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence and dominance in the domain registration space.
VeriSign touched its three-year high of $247.47 in yesterday’s trading session before slightly pulling back. Meanwhile, VRSN stock has soared 22% over the past three months, notably outpacing the Nasdaq Composite’s ($NASX) 8.8% decline during the same time frame.
VeriSign’s performance has remained robust over the longer term as well. VRSN has surged 34.7% over the past six months and 31.3% over the past 52 weeks, notably outperforming NASX’s 1.1% gains over the past six months and 11.5% returns over the past year.
To confirm the bullish trend, VRSN has traded consistently above its 50-day and 200-day moving averages since late November 2024.
VeriSign’s stock observed a marginal uptick in the trading session after the release of its Q4 results on Feb. 6. During the quarter, the company processed 9.5 million new domain name registrations for .com and .net, up from 9 million in the year-ago quarter. Meanwhile, its revenues increased 3.9% year-over-year to $395.4 million, exceeding the Street’s expectations by 32 bps. Although its net income observed a notable drop to $191.4 million, its EPS of $2.00 was in line with analysts’ estimates. Furthermore, VeriSign reported a notable improvement in its cash flows, the company's operating cash flows for Q4 surged 13.7% year-over-year to $232 million, which boosted investor confidence.
While VeriSign has significantly outpaced its competitor GoDaddy Inc.’s (GDDY) 16% gains over the past six months, it has notably lagged behind GDDY’s 52.3% surge over the past 52 weeks.
Among the two analysts covering the VRSN stock, the consensus rating is a “Strong Buy.” Its mean price target of $257.50 represents a modest 4.8% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
