Bowie Capital Management LLC Decreases Stock Holdings in Visa Inc. $V

Key Points

• Bowie Capital Management cut its Visa stake by 50.1% in the second quarter, selling 199,546 shares and retaining 198,480 shares valued at approximately $68.1 million.
• Wall Street remains bullish: Visa has a consensus “Buy” rating and an average price target of $413.58. The company also exceeded quarterly earnings and revenue estimates, with revenue up 14.4% year over year.
• Visa declared a quarterly dividend of $0.67 per share and maintains a $20 billion share-repurchase authorization, while insiders sold roughly $32.4 million of stock over the past three months.

Bowie Capital Management LLC decreased its holdings in shares of Visa Inc. (NYSE:V - Free Report) by 50.1% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 198,480 shares of the credit-card processor's stock after selling 199,546 shares during the period. Visa accounts for about 2.9% of Bowie Capital Management LLC's holdings, making the stock its 15th largest holding. Bowie Capital Management LLC's holdings in Visa were worth $68,097,000 at the end of the most recent quarter.

Other large investors have also recently modified their holdings of the company. Cresta Advisors Ltd. bought a new stake in Visa during the 4th quarter valued at approximately $26,000. Parvin Asset Management LLC raised its position in shares of Visa by 200.0% in the 3rd quarter. Parvin Asset Management LLC now owns 75 shares of the credit-card processor's stock worth $26,000 after purchasing an additional 50 shares during the last quarter. Virtus Advisers LLC bought a new position in shares of Visa in the second quarter worth approximately $33,000. RHL Group LLC bought a new position in Visa in the 4th quarter valued at approximately $34,000. Finally, Timmons Wealth Management LLC purchased a new stake in shares of Visa during the fourth quarter valued at $34,000. Institutional investors own 82.15% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the stock. BMO Capital Markets raised their target price on shares of Visa from $387.00 to $405.00 and gave the stock an "outperform" rating in a report on Wednesday, July 29th. UBS Group reaffirmed a "buy" rating and set a $420.00 price target (up from $410.00) on shares of Visa in a report on Wednesday, July 29th. Wells Fargo & Company reaffirmed an "overweight" rating and issued a $432.00 price objective (up from $412.00) on shares of Visa in a research note on Thursday, July 30th. Evercore set a $350.00 target price on shares of Visa in a report on Wednesday, April 29th. Finally, Wolfe Research restated an "outperform" rating and set a $435.00 target price (up from $430.00) on shares of Visa in a research report on Wednesday, July 29th. Seven equities research analysts have rated the stock with a Strong Buy rating and twenty-four have given a Buy rating to the stock. Based on data from MarketBeat.com, Visa has a consensus rating of "Buy" and an average target price of $413.58.

Insiders Place Their Bets

In other news, insider Tullier Kelly Mahon sold 57,272 shares of the business's stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $364.97, for a total value of $20,902,561.84. Following the sale, the insider directly owned 49,662 shares in the company, valued at $18,125,140.14. The trade was a 53.56% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, General Counsel Julie B. Rottenberg sold 2,027 shares of the company's 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 sale, the general counsel owned 18,404 shares in the company, valued at approximately $6,625,440. This trade represents a 9.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 90,759 shares of company stock valued at $32,375,779 in the last three months. Corporate insiders own 0.12% of the company's stock.

Visa Stock Up 0.2%

Shares of V opened at $366.31 on Friday. The company has a debt-to-equity ratio of 0.60, a current ratio of 0.99 and a quick ratio of 0.99. The stock has a market capitalization of $653.65 billion, a price-to-earnings ratio of 31.15, a price-to-earnings-growth ratio of 1.96 and a beta of 0.74. Visa Inc. has a 1 year low of $293.89 and a 1 year high of $373.97. The business's 50 day simple moving average is $352.75 and its 200-day simple moving average is $329.35.

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 analysts' consensus estimates of $3.23 by $0.09. Visa had a net margin of 50.78% and a return on equity of 67.68%. The firm had revenue of $11.63 billion during the quarter, compared to analyst estimates of $11.40 billion. During the same period last year, the firm posted $2.98 earnings per share. Visa's revenue for the quarter was up 14.4% compared to the same quarter last year. As a group, equities analysts expect that Visa Inc. will post 13.16 earnings per share for the current fiscal year.

Visa Announces Dividend

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

Visa announced that its Board of Directors has initiated a share buyback plan on Tuesday, April 28th that authorizes the company to buyback $20.00 billion in shares. This buyback authorization authorizes the credit-card processor to purchase up to 3.6% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its shares are undervalued.

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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