Shares of domain name registry operator Verisign (NASDAQ:VRSN) fell 8.5% in the morning session after news that major shareholder Berkshire Hathaway sold a significant portion of its stake in the company at a discount.

Berkshire Hathaway will sell about one-third of its more than $4 billion stake in VeriSign, an internet infrastructure and domain name registry company that Warren Buffett's conglomerate has invested in since 2012,

VeriSign shares dropped after the company released the pricing of its previously announced underwritten secondary offering of its common stock by affiliates of Berkshire Hathaway. Shares were down 7% at $284.72 on Tuesday. The stock has been down 1.6% this month.

The Sage of Omaha's company will make over $1.2 billion from the sale, according to an announcement on Monday.

VeriSign is set to announce its earnings on July 24. In last five years, VRSN stock has displayed an equal division in one-day returns following earnings announcements.

VeriSign shares declined after the company announced an underwritten secondary offering of its common stock by affiliates of Berkshire Hathaway. The stock fell 7.5% to $283.01 in after-hours trading on Monday. Shares have risen 48% year to date through market close.

VeriSign has strong profit margins, resumed dividends, and key risks like cyber threats. Read here to know why VRSN stock earns a neutral hold rating.

BERKSHIRE Hathaway sold about one-third of its stake in VeriSign, an internet infrastructure and domain name registry company that Warren Buffett’s conglomerate has invested in since 2012, VeriSign said on Monday.

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