NEW YORK (TheStreet) -- Shares of Verisign (VRSN) - Get Report were up 8.56% to $81.21 on heavy trading volume mid-Friday afternoon after Cowen analysts contended that a Justice Department letter regarding Senator Ted Cruz's objection to the extension of its dot-com contract likely won't have a "material adverse outcome."
Verisign runs the dot-com and dot-net domain and helps the nonprofit Internet Corporation for Assigned Names and Numbers (Icann) handle the domain-name system.
The U.S. government is preparing to end its current oversight of Icann, but critics including Cruz have asked the Justice Department to investigate what they view as preferential treatment of Verisign by Icann, the Wall Street Journal reported.
The National Telecommunications and Information Agency (NTIA), the agency that oversees Icann, has since released a letter from the Justice Department responding to the critics' complaints about a proposed contract extension that would grant Verisign exclusive control of the dot-com registry through 2024.
Cowen believes the letter indicates that the Justice Department and the NTIA are unlikely to intervene before Icann and Verisign's boards approve the contract, TheFly reports.
The firm added that Verisign's dot-net domain additions for the third quarter are slightly above the high end of the company's guidance.
About 3.32 million shares of the Reston, VA-based company have been traded so far today, well above its average trading volume of roughly 1.11 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.
Verisign's strengths such as its increase in stock price during the past year, impressive record of earnings per share growth, revenue growth, expanding profit margins and compelling growth in net income outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: VRSN
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.