Applied Finance Capital Management LLC Has $6.52 Million Stock Holdings in Visa Inc. $V

Key Points

• Applied Finance Capital Management LLC reduced its stake in Visa Inc. by 9.7% during the second quarter, holding shares valued at $6.52 million after selling 1,976 shares.
• Visa reported $2.98 earnings per share for the last quarter, surpassing estimates and marking a 14.3% year-over-year revenue increase to $10.17 billion.
• The company announced a quarterly dividend of $0.59 per share, resulting in an annual payout of $2.36 and a dividend yield of 0.7%.

Applied Finance Capital Management LLC trimmed its position in Visa Inc. (NYSE:V - Free Report) by 9.7% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 18,372 shares of the credit-card processor's stock after selling 1,976 shares during the quarter. Applied Finance Capital Management LLC's holdings in Visa were worth $6,523,000 at the end of the most recent reporting period.

A number of other hedge funds have also added to or reduced their stakes in the company. Vanguard Group Inc. increased its stake in Visa by 1.1% in the first quarter. Vanguard Group Inc. now owns 161,082,431 shares of the credit-card processor's stock valued at $56,452,949,000 after acquiring an additional 1,677,088 shares during the last quarter. Northern Trust Corp grew its stake in shares of Visa by 4.0% during the first quarter. Northern Trust Corp now owns 18,987,013 shares of the credit-card processor's stock worth $6,654,189,000 after buying an additional 726,299 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Visa by 7.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 14,277,146 shares of the credit-card processor's stock worth $5,003,569,000 after buying an additional 955,392 shares during the last quarter. Charles Schwab Investment Management Inc. grew its stake in shares of Visa by 3.5% during the first quarter. Charles Schwab Investment Management Inc. now owns 12,675,220 shares of the credit-card processor's stock worth $4,442,157,000 after buying an additional 434,217 shares during the last quarter. Finally, Wellington Management Group LLP grew its stake in shares of Visa by 17.7% during the first quarter. Wellington Management Group LLP now owns 10,979,720 shares of the credit-card processor's stock worth $3,847,953,000 after buying an additional 1,651,954 shares during the last quarter. 82.15% of the stock is owned by institutional investors.

Visa Trading Up 0.7%

V opened at $344.44 on Tuesday. Visa Inc. has a 1-year low of $280.78 and a 1-year high of $375.51. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 0.52. The company has a market cap of $631.28 billion, a P/E ratio of 33.64, a price-to-earnings-growth ratio of 2.03 and a beta of 0.90. The company has a fifty day moving average price of $344.47 and a two-hundred day moving average price of $347.11.

Visa (NYSE:V - Get Free Report) last posted its quarterly earnings results on Tuesday, July 29th. The credit-card processor reported $2.98 earnings per share for the quarter, beating the consensus estimate of $2.85 by $0.13. Visa had a net margin of 52.16% and a return on equity of 58.93%. The firm had revenue of $10.17 billion during the quarter, compared to the consensus estimate of $9.82 billion. During the same period in the previous year, the firm posted $2.42 earnings per share. The business's revenue was up 14.3% compared to the same quarter last year. Analysts predict that Visa Inc. will post 11.3 EPS for the current fiscal year.

Visa Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 2nd. Stockholders of record on Tuesday, August 12th were given a dividend of $0.59 per share. The ex-dividend date of this dividend was Tuesday, August 12th. This represents a $2.36 annualized dividend and a dividend yield of 0.7%. Visa's payout ratio is presently 23.05%.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on V shares. Robert W. Baird set a $410.00 target price on shares of Visa and gave the stock an "outperform" rating in a research note on Monday, October 6th. Barclays reaffirmed an "overweight" rating and set a $408.00 target price (up previously from $396.00) on shares of Visa in a research note on Thursday, July 31st. Morgan Stanley lifted their price target on shares of Visa from $386.00 to $402.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Weiss Ratings reiterated a "buy (b)" rating on shares of Visa in a report on Wednesday, October 8th. Finally, Oppenheimer lifted their price target on shares of Visa from $390.00 to $391.00 and gave the stock an "outperform" rating in a report on Wednesday, July 2nd. One research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, Visa has an average rating of "Moderate Buy" and a consensus target price of $389.00.

Insider Activity

In other Visa news, CEO Ryan Mcinerney sold 10,485 shares of the company's stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $342.30, for a total value of $3,589,015.50. Following the completion of the sale, the chief executive officer directly owned 537 shares of the company's stock, valued at approximately $183,815.10. This represents a 95.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, General Counsel Julie B. Rottenberg sold 2,027 shares of the company's stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $344.02, for a total transaction of $697,328.54. Following the completion of the sale, the general counsel directly owned 11,925 shares of the company's stock, valued at $4,102,438.50. The trade was a 14.53% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.13% of the company's stock.

Visa Company Profile

Visa Inc operates as a payment technology company in the United States and internationally. The company operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. It also offers credit, debit, and prepaid card products; tap to pay, tokenization, and click to pay services; Visa Direct, a solution that facilitates the delivery of funds to eligible cards, deposit accounts, and digital wallets; Visa B2B Connect, a multilateral business-to-business cross-border payments network; Visa Cross-Border Solution, a cross-border consumer payments solution; and Visa DPS that provides a range of value-added services, including fraud mitigation, dispute management, data analytics, campaign management, a suite of digital solutions, and contact center services.

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