While most stocks were giving back recent gains on Thursday, shares of e-commerce security company VeriSign (Nasdaq: VRSN) hit an all-time closing high. VeriSign stock closed up 4-1/4 to 110-1/2 after trading as high as 114. SG Cowen initiated coverage of VeriSign with a buy rating on Thursday.
On Tuesday, VeriSign announced that it was working toward launching new secure e-commerce services in Canada. Like many Internet infrastructure companies — including e-commerce software companies such as Ariba — VeriSign is climbing to new heights even though it’s hardly a household name. While the stocks of many e-commerce retailers are struggling, the stocks of many of the companies that provide the foundation for e-commerce are flourishing.
Institutional investors are doing a lot of the buying in this sector, but individual investors may be starting to catch on.