Bowen Hanes & Co. Inc. Cuts Stock Holdings in Visa Inc. $V

Key Points

• Bowen Hanes & Co. Inc. trimmed its Visa stake by 2.4% in the fourth quarter, selling 5,128 shares. The fund still owns 209,247 shares valued at about $73.4 million, making Visa its 17th largest holding.
• Visa reported better-than-expected quarterly results, with earnings of $3.31 per share on revenue of $11.23 billion, both above analyst estimates. Revenue rose 17.1% year over year, and the company also posted strong profitability metrics.
• The company announced a $20 billion share buyback and paid a quarterly dividend of $0.67 per share, while analysts remain broadly bullish with an average Buy rating and target price around $389.33. However, the stock was trading down and investors are watching competitive risks from stablecoin/payment innovations.

Bowen Hanes & Co. Inc. reduced its stake in Visa Inc. (NYSE:V - Free Report) by 2.4% during the fourth quarter, according to its most recent filing with the SEC. The fund owned 209,247 shares of the credit-card processor's stock after selling 5,128 shares during the quarter. Visa accounts for approximately 1.8% of Bowen Hanes & Co. Inc.'s portfolio, making the stock its 17th largest holding. Bowen Hanes & Co. Inc.'s holdings in Visa were worth $73,385,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. Glassy Mountain Advisors Inc. boosted its holdings in shares of Visa by 0.9% in the 4th quarter. Glassy Mountain Advisors Inc. now owns 25,557 shares of the credit-card processor's stock worth $8,963,000 after buying an additional 230 shares during the last quarter. Private Wealth Asset Management LLC boosted its holdings in shares of Visa by 0.5% in the 4th quarter. Private Wealth Asset Management LLC now owns 12,408 shares of the credit-card processor's stock worth $4,352,000 after buying an additional 62 shares during the last quarter. BlackDiamond Wealth Management LLC boosted its holdings in shares of Visa by 8.6% in the 4th quarter. BlackDiamond Wealth Management LLC now owns 2,661 shares of the credit-card processor's stock worth $866,000 after buying an additional 211 shares during the last quarter. Elgethun Capital Management boosted its holdings in shares of Visa by 1.6% in the 4th quarter. Elgethun Capital Management now owns 4,018 shares of the credit-card processor's stock worth $1,409,000 after buying an additional 65 shares during the last quarter. Finally, WCG Wealth Advisors LLC boosted its holdings in shares of Visa by 16.1% in the 4th quarter. WCG Wealth Advisors LLC now owns 103,474 shares of the credit-card processor's stock worth $36,289,000 after buying an additional 14,332 shares during the last quarter. 82.15% of the stock is owned by hedge funds and other institutional investors.

Visa Trading Down 1.1%

Shares of V opened at $313.90 on Thursday. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 0.64. The business's 50-day moving average price is $315.83 and its 200-day moving average price is $324.56. The stock has a market cap of $563.07 billion, a PE ratio of 27.34, a P/E/G ratio of 1.70 and a beta of 0.77. Visa Inc. has a twelve month low of $293.89 and a twelve month high of $375.51.

Visa (NYSE:V - Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The credit-card processor reported $3.31 earnings per share for the quarter, topping the consensus estimate of $3.10 by $0.21. The company had revenue of $11.23 billion for the quarter, compared to analysts' expectations of $10.75 billion. Visa had a net margin of 51.68% and a return on equity of 65.00%. Visa's revenue for the quarter was up 17.1% compared to the same quarter last year. During the same period in the prior year, the business earned $2.76 earnings per share. On average, equities analysts forecast that Visa Inc. will post 13.09 EPS for the current fiscal year.

Visa Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 1st. Investors of record on Tuesday, May 12th were given a $0.67 dividend. This represents a $2.68 annualized dividend and a dividend yield of 0.9%. The ex-dividend date was Tuesday, May 12th. Visa's dividend payout ratio is 23.34%.

Visa declared that its board has authorized a stock buyback program on Tuesday, April 28th that authorizes the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization authorizes the credit-card processor to repurchase up to 3.6% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's management believes its shares are undervalued.

Visa News Summary

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Visa was named as a backer of a reportedly soon-to-launch stablecoin platform with Mastercard and Stripe, which could support faster and cheaper cross-border settlement and show Visa is helping build the next generation of payment rails. Report: Payments Giants Visa, Mastercard, and Stripe Back Stablecoin Platform for Faster Payments
• Positive Sentiment: Visa’s broader product push in commercial payments is also a tailwind, with recent expansion of its Commercial Solutions Hub and AI-powered receivables tools aimed at improving virtual card adoption, reconciliation, and payment efficiency. Visa (V) Announces Expansion of the Visa Commercial Solutions Hub
• Neutral Sentiment: Visa’s network is being used in new gold-backed consumer cards from Tether and Fasset, underscoring continued demand for Visa’s global acceptance infrastructure, though the direct financial impact is unclear. Tether Backs $1M in Gold Rewards as First Gold-Backed Visa Card Goes Live
• Neutral Sentiment: Visa was also mentioned in reports about companies exiting Cuba amid expanded U.S. sanctions, which is more of a geopolitical compliance issue than a meaningful earnings driver. Visa, Mastercard Join Exodus From Cuba on Expanded US Sanctions
• Negative Sentiment: Investors are focusing on the risk that stablecoin platforms could intensify competition in payments and shift some transaction economics away from traditional card networks like Visa, helping explain the stock’s weakness today. Mastercard and Visa Back Stealth Stablecoin Platform

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on V shares. Raymond James Financial restated an "outperform" rating and issued a $389.00 price objective on shares of Visa in a research note on Wednesday, April 29th. Citigroup lowered their price target on shares of Visa from $450.00 to $400.00 and set a "buy" rating on the stock in a research report on Tuesday, April 14th. Weiss Ratings lowered shares of Visa from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Thursday, April 16th. Evercore set a $350.00 price target on shares of Visa in a research report on Wednesday, April 29th. Finally, Cantor Fitzgerald reissued an "overweight" rating and issued a $400.00 price target on shares of Visa in a research report on Wednesday, April 29th. Six research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and an average target price of $389.33.

Insider Buying and Selling

In related news, CFO Chris Suh sold 10,639 shares of the company's stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $324.81, for a total value of $3,455,653.59. Following the transaction, the chief financial officer directly owned 9,872 shares in the company, valued at approximately $3,206,524.32. This represents a 51.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Lloyd Carney sold 650 shares of the company's stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $309.62, for a total transaction of $201,253.00. Following the completion of the transaction, the director owned 2,679 shares in the company, valued at approximately $829,471.98. This trade represents a 19.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 42,744 shares of company stock worth $14,356,010. Insiders own 0.12% of the company's stock.

Visa 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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