VeriSign, Inc. (VRSN), founded in 1995 and headquartered in Reston, Virginia, is a global leader in domain name registry services and internet infrastructure. With a market cap of $19.4 billion, VRSN ensures internet connection stability, security, and reliability worldwide.
Companies with a market value of $10 billion or more are classified as “large-cap stocks,” and VeriSign is a notable member of this group. VRSN’s strong market position and dedication to innovation in domain name registry services and internet infrastructure solidify its role as a leader in the digital ecosystem, ensuring the security and reliability of online communications worldwide.
VeriSign’s shares are currently trading 3.2% below its 52-week high of $208.04, reached on Jan. 24. The stock has gained 9.6% over the three months, outperforming the broader S&P 500 Index’s ($SPX) 5.4% gains during the same time frame.
Over the last six months, VRSN has gained 11.9%, outperforming the SPX’s 10.9% return. However, over the past year, VRSN stock declined 2.4%, while SPX rallied 27% during the same timeframe.
The stock has maintained its position above its 50-day and 200-day moving averages since late November, indicating a bullish trend.
VeriSign has experienced notable stock activity driven by operational updates and market sentiment. On Dec. 9, the stock jumped over 4% after Baird upgraded its rating to “Outperform” with a price target of $250, signaling heightened confidence in its potential.
Earlier, on Nov. 27, the stock gained more than 3% after ICANN renewed the .com registry agreement, maintaining the existing domain name pricing provisions, which reinforces stability in VeriSign’s core business.
In its Q3 earnings report released on Oct. 24, VeriSign posted a 3.8% year-over-year revenue growth to $390.6 million, with operating income rising to $269 million from $254 million in Q3 2023. Net income improved to $201 million, with EPS amounting to $2.07 compared to $1.83 a year earlier. Despite these strong results, the stock declined 2.1% after the earnings release.
VRSN’s competitor, GoDaddy Inc. (GDDY), has significantly outperformed in comparison. GoDaddy’s shares have gained 95.2% over the past 52 weeks.
Given VRSN’s strong performance compared to the broader sector, analysts remain optimistic about the stock’s future. VRSN has a unanimous “Strong Buy” rating from the two analysts covering the stock.” It has a mean price target of $230, which suggests a potential upside of 14.2% from its current level.
On the date of publication, Rashmi Kumari 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. More news from Barchart
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