Up 70% This Past Year, This Tech Stock Could Be Ready to Split Its Stock This Year

As stocks get more expensive, speculation of a future stock split grows. Stock splits make it easier for investors to buy a larger quantity of shares, but more importantly, they lower the price of options contracts. 

VeriSign (NASDAQ:VRSN) is one candidate for a stock split. A 70% rally over the past year has brought the stock price above $280 per share. As a reference, Supermicro (NASDAQ:SMCI) did a 10-for-1 stock split on October 1, 2024, changing the price from $630 per share to $63 per share.

A 10-for-1 stock split may not be in the cards for VeriSign. However, a lower stock split, such as a 5-for-1 or a 7-for-1 split, is possible. Here’s why you should keep an eye on VeriSign leading up to a stock split.

What Does VeriSign Do?

VeriSign is a cybersecurity stock and a leading provider of internet infrastructure services. Its domain security services help keep the Domain Name System (DNS) intact. It’s a key behind-the-scenes player on the internet. As e-commerce, social networks, and other internet businesses and trends continue to grow, VeriSign stands to benefit.

The firm works closely with multiple government agencies to protect the internet and keep the .com registry content neutral. The company was founded in 1995 and manages two of the world’s 13 internet root servers. It’s a member of the S&P 500 and hires roughly 900 employees.

Why Are Investors Talking About A Stock Split?

Stock splits usually happen when a company’s share price grows quickly and gets deep into the triple digits. While it’s premature to suggest a stock split the moment a stock breaks $100 per share, VeriSign is approaching $300 per share.

Furthermore, the company recently initiated a quarterly dividend. This announcement came in Q1 2025, as CEO Jim Bidzos emphasized the company’s “commitment to return value to shareholders.”

This commitment to shareholders can soon translate into a stock split. The split would boost the stock’s visibility and could result in elevated returns for investors. However, it’s important to note that stock splits don’t actually increase a company’s intrinsic value. It’s just cutting the pie into smaller pieces. This pie cutting act usually attracts plenty of buzz from incoming investors and can lead to a higher stock price, nevertheless.

Is VeriSign Stock A Buy?

It’s important for investors to perform due diligence and assess their risk tolerance before buying any stock. VeriSign caters to investors who are bullish on the internet and cybersecurity. As hackers get more sophisticated, VeriSign’s services will become even more important. The expanding web can also give VeriSign more resources to protect and monitor, which can lead to higher revenue and profits.

VeriSign more than doubled its cash position year-over-year in the first quarter. Revenue jumped by 4.7% year-over-year while net income was up by 2.7% year-over-year. The firm regularly delivers high profit margins that hover at around 50%. VeriSign has enjoyed a strong rally over the past year, but it has trailed most brand-name cybersecurity stocks over the past five years. VRSN has only gained 30% over the past five years, but it may be turning a corner based on its gains over the past year.

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