Capital World Investors Trims Holdings in Visa Inc. $V

Capital World Investors trimmed its stake in Visa Inc. (NYSE:V) by 1.3% during the fourth quarter, according to its most recent 13F filing with the SEC. The firm owned 24,477,064 shares of the credit-card processor’s stock after selling 315,182 shares during the period. Visa comprises 1.2% of Capital World Investors’ investment portfolio, making the stock its 12th biggest holding. Capital World Investors owned approximately 1.35% of Visa worth $8,584,588,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Beacon Capital Management LLC raised its stake in shares of Visa by 2.0% in the 3rd quarter. Beacon Capital Management LLC now owns 1,541 shares of the credit-card processor’s stock valued at $526,000 after acquiring an additional 30 shares during the period. Chapman Financial Group LLC raised its stake in shares of Visa by 0.9% in the 3rd quarter. Chapman Financial Group LLC now owns 3,211 shares of the credit-card processor’s stock valued at $1,096,000 after acquiring an additional 30 shares during the period. Ransom Advisory Ltd raised its stake in shares of Visa by 0.3% in the 4th quarter. Ransom Advisory Ltd now owns 9,447 shares of the credit-card processor’s stock valued at $3,313,000 after acquiring an additional 30 shares during the period. TSA Wealth Managment LLC raised its stake in shares of Visa by 4.9% in the 3rd quarter. TSA Wealth Managment LLC now owns 659 shares of the credit-card processor’s stock valued at $225,000 after acquiring an additional 31 shares during the period. Finally, Bank OZK raised its stake in shares of Visa by 3.7% in the 3rd quarter. Bank OZK now owns 858 shares of the credit-card processor’s stock valued at $293,000 after acquiring an additional 31 shares during the period. 82.15% of the stock is owned by hedge funds and other institutional investors.

Visa Trading Up 1.2%

Shares of V stock opened at $324.03 on Friday. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.09 and a current ratio of 1.09. The stock has a market capitalization of $581.24 billion, a P/E ratio of 28.23, a price-to-earnings-growth ratio of 1.73 and a beta of 0.77. The company has a 50 day moving average price of $316.53 and a 200 day moving average price of $324.49. Visa Inc. has a fifty-two week low of $293.89 and a fifty-two week high of $375.51.

Visa (NYSE:V) last announced its quarterly earnings data on Tuesday, April 28th. The credit-card processor reported $3.31 earnings per share for the quarter, beating analysts’ consensus estimates of $3.10 by $0.21. Visa had a net margin of 51.68% and a return on equity of 65.00%. The firm had revenue of $11.23 billion during the quarter, compared to analysts’ expectations of $10.75 billion. During the same quarter in the previous year, the business posted $2.76 earnings per share. The business’s quarterly revenue was up 17.1% compared to the same quarter last year. Equities research analysts predict that Visa Inc. will post 13.09 EPS for the current fiscal year.

Visa declared that its board has approved a stock repurchase program on Tuesday, April 28th that permits the company to buyback $20.00 billion in shares. This buyback authorization permits the credit-card processor to reacquire up to 3.6% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s leadership believes its stock is undervalued.

Visa Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 1st. Shareholders of record on Tuesday, May 12th were issued a dividend of $0.67 per share. This represents a $2.68 annualized dividend and a yield of 0.8%. The ex-dividend date was Tuesday, May 12th. Visa’s payout ratio is 23.34%.

Insiders Place Their Bets

In other Visa news, CEO Ryan Mcinerney sold 31,455 shares of the business’s stock in a transaction that occurred on Wednesday, April 29th. The shares were sold at an average price of $340.14, for a total transaction of $10,699,103.70. Following the completion of the transaction, the chief executive officer owned 15,174 shares in the company, valued at $5,161,284.36. The trade was a 67.46% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Chris Suh sold 10,639 shares of the business’s stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $324.81, for a total transaction of $3,455,653.59. Following the transaction, the chief financial officer owned 9,872 shares of the company’s stock, valued at $3,206,524.32. This trade represents a 51.87% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 42,744 shares of company stock worth $14,356,010 in the last 90 days. Corporate insiders own 0.12% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on V shares. Cantor Fitzgerald reissued an “overweight” rating and issued a $400.00 price target on shares of Visa in a research note on Wednesday, April 29th. Raymond James Financial restated an “outperform” rating and issued a $389.00 price objective on shares of Visa in a report on Wednesday, April 29th. Freedom Capital upgraded shares of Visa from a “hold” rating to a “strong-buy” rating in a report on Monday, February 16th. Sanford C. Bernstein restated an “outperform” rating and issued a $450.00 price objective on shares of Visa in a report on Tuesday. Finally, Evercore set a $350.00 price objective on shares of Visa in a report on Wednesday, April 29th. Six equities research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat, Visa currently has an average rating of “Buy” and an average price target of $387.78.

Trending Headlines about Visa

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Visa is testing private stablecoin settlement with Brale on the Canton Network, a proof of concept aimed at enabling institutional payments with more privacy and efficiency. Investors may see this as evidence that Visa is expanding its payments infrastructure into a potentially high-growth use case. Article: Visa tests private stablecoin settlement with Brale, Canton
• Positive Sentiment: Visa’s new partnership with Brale reinforces its stablecoin strategy and suggests the company is actively building tools for institutional blockchain settlement, which could strengthen long-term growth prospects. Article: How Visa Advances Stablecoin Payment Vision With Brale Partnership?
• Positive Sentiment: Reports that Visa, Mastercard, Stripe and others are collaborating on a new stablecoin platform suggest major payments players are validating the opportunity, which may help Visa if the initiative gains merchant traction. Article: Visa Mastercard Stablecoin Push Tests Circle USDC And Rich Valuation
• Neutral Sentiment: Visa also announced leadership appointments in Asia Pacific to support value-added services and Southeast Asia growth, a positive operating update but likely not a major near-term stock driver. Article: Visa Announces Asia Pacific Leadership Appointments to Scale Value-Added Services and Southeast Asia Growth
• Negative Sentiment: News that Visa and Mastercard payments are being halted in Cuba adds a small regional headwind, though the revenue impact is likely limited compared with Visa’s overall global business. Article: Visa, Mastercard payments to be halted in Cuba amid new US sanctions

About Visa

Visa Inc is a global payments technology company that facilitates electronic funds transfers and digital commerce by connecting consumers, merchants, financial institutions and governments. The firm operates one of the world’s largest payment networks, providing processing, authorization, clearing and settlement services for credit, debit and prepaid card transactions. Visa’s network-based model enables partner banks and other issuers to offer branded payment products while Visa focuses on the infrastructure, standards and technologies that move money securely and efficiently around the world.

Visa’s product and service portfolio includes card-based payment products for consumers and businesses, real-time push-payment capabilities, tokenization and authentication services, fraud and risk-management tools, data analytics and APIs for fintech and merchant integration.