23,906 Shares in Visa Inc. $V Acquired by Algebris UK Ltd.

Key Points

• Algebris UK Ltd. acquired 23,906 Visa shares in the second quarter, valued at approximately $8.18 million. Institutional investors collectively own 82.15% of Visa’s outstanding stock.
• Analysts remain bullish, with Visa receiving an average “Buy” rating and an average price target of $413.58; several firms recently raised their targets to between $412 and $430.
• Visa reported quarterly earnings of $3.32 per share and revenue of $11.63 billion, exceeding expectations, while revenue grew 14.4% year over year. The company also declared a $0.67 quarterly dividend and authorized a $20 billion share-buyback program.

Algebris UK Ltd. bought a new stake in shares of Visa Inc. (NYSE:V - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 23,906 shares of the credit-card processor's stock, valued at approximately $8,176,000.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in V. Vanguard Group Inc. grew its stake in shares of Visa by 0.7% during the 4th quarter. Vanguard Group Inc. now owns 160,975,832 shares of the credit-card processor's stock valued at $56,455,834,000 after acquiring an additional 1,054,343 shares during the period. State Street Corp boosted its position in shares of Visa by 0.8% in the fourth quarter. State Street Corp now owns 82,798,151 shares of the credit-card processor's stock worth $29,038,140,000 after purchasing an additional 626,821 shares during the period. Geode Capital Management LLC boosted its position in shares of Visa by 0.9% in the fourth quarter. Geode Capital Management LLC now owns 44,042,586 shares of the credit-card processor's stock worth $15,411,395,000 after purchasing an additional 388,996 shares during the period. Price T Rowe Associates Inc. MD increased its stake in shares of Visa by 1.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 41,092,294 shares of the credit-card processor's stock worth $14,411,480,000 after purchasing an additional 716,218 shares in the last quarter. Finally, Bank of America Corp DE increased its stake in shares of Visa by 1.7% in the fourth quarter. Bank of America Corp DE now owns 23,835,336 shares of the credit-card processor's stock worth $8,359,291,000 after purchasing an additional 398,459 shares in the last quarter. 82.15% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms recently weighed in on V. Robert W. Baird lifted their target price on shares of Visa from $412.00 to $420.00 and gave the company an "outperform" rating in a research note on Wednesday, July 29th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $412.00 price target (up from $395.00) on shares of Visa in a research note on Wednesday, July 29th. Piper Sandler reissued an "overweight" rating and set a $430.00 price target (up from $394.00) on shares of Visa in a report on Wednesday, July 29th. Clear Str upgraded Visa to a "strong-buy" rating in a research report on Thursday, July 16th. Finally, BNP Paribas Exane raised Visa to a "strong-buy" rating in a research note on Tuesday, July 21st. Seven research analysts have rated the stock with a Strong Buy rating and twenty-four have assigned a Buy rating to the stock. According to MarketBeat, the stock has an average rating of "Buy" and an average target price of $413.58.

Visa Price Performance

V stock opened at $366.31 on Friday. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.99 and a current ratio of 0.99. The company's fifty day moving average price is $352.75 and its 200-day moving average price is $329.35. Visa Inc. has a one year low of $293.89 and a one year high of $373.97. The company has a market capitalization of $653.65 billion, a PE ratio of 31.15, a price-to-earnings-growth ratio of 1.96 and a beta of 0.74.

Visa (NYSE:V - Get Free Report) last posted its earnings results on Tuesday, July 28th. The credit-card processor reported $3.32 earnings per share for the quarter, beating the consensus estimate of $3.23 by $0.09. The company had revenue of $11.63 billion during the quarter, compared to analysts' expectations of $11.40 billion. Visa had a net margin of 50.78% and a return on equity of 67.68%. Visa's quarterly revenue was up 14.4% on a year-over-year basis. During the same period last year, the company posted $2.98 earnings per share. On average, equities analysts anticipate that Visa Inc. will post 13.16 EPS for the current fiscal year.

Visa Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 11th will be issued a dividend of $0.67 per share. This represents a $2.68 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Tuesday, August 11th. Visa's dividend payout ratio is 22.79%.

Visa announced that its board has initiated a share buyback plan on Tuesday, April 28th that allows the company to buyback $20.00 billion in outstanding shares. This buyback authorization allows the credit-card processor to reacquire up to 3.6% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's leadership believes its shares are undervalued.

Insider Activity

In related news, CEO Ryan Mcinerney sold 20,970 shares of the business's stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $340.25, for a total value of $7,135,042.50. Following the sale, the chief executive officer directly owned 15,174 shares in the company, valued at approximately $5,162,953.50. The trade was a 58.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Julie B. Rottenberg sold 2,027 shares of the stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $360.00, for a total value of $729,720.00. Following the transaction, the general counsel directly owned 18,404 shares of the company's stock, valued at approximately $6,625,440. The trade was a 9.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 90,759 shares of company stock worth $32,375,779 over the last 90 days. Corporate insiders own 0.12% of the company's stock.

Visa Company Profile

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.

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