California State Teachers Retirement System Sells 75,627 Shares of Visa Inc. $V

Key Points

• CalSTRS reduced its Visa stake by 2.9%, selling 75,627 shares and retaining 2.57 million shares worth approximately $775.6 million. Institutional investors collectively own 82.15% of Visa.
• Visa exceeded quarterly expectations, reporting $3.32 in EPS and $11.63 billion in revenue, with revenue up 14.4% year over year. The company also authorized a $20 billion share-repurchase program.
• Analysts remain broadly positive, with Visa carrying a “Buy” consensus rating and an average price target of $399.41 versus its reported share price of $366.49, though workforce reductions and margin concerns present risks.

California State Teachers Retirement System decreased its holdings in Visa Inc. (NYSE:V - Free Report) by 2.9% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 2,566,187 shares of the credit-card processor's stock after selling 75,627 shares during the period. Visa accounts for about 0.8% of California State Teachers Retirement System's holdings, making the stock its 17th biggest position. California State Teachers Retirement System owned 0.14% of Visa worth $775,604,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Brighton Jones LLC grew its holdings in Visa by 50.1% during the 4th quarter. Brighton Jones LLC now owns 20,635 shares of the credit-card processor's stock valued at $6,522,000 after buying an additional 6,883 shares in the last quarter. Revolve Wealth Partners LLC lifted its stake in Visa by 68.9% in the 4th quarter. Revolve Wealth Partners LLC now owns 11,811 shares of the credit-card processor's stock worth $3,733,000 after purchasing an additional 4,817 shares in the last quarter. Nicholas Hoffman & Company LLC. boosted its holdings in Visa by 4.6% in the 1st quarter. Nicholas Hoffman & Company LLC. now owns 10,941 shares of the credit-card processor's stock valued at $3,834,000 after purchasing an additional 477 shares during the period. Matrix Asset Advisors Inc. NY boosted its stake in Visa by 16.9% during the second quarter. Matrix Asset Advisors Inc. NY now owns 1,133 shares of the credit-card processor's stock valued at $402,000 after buying an additional 164 shares during the period. Finally, Schnieders Capital Management LLC. boosted its position in shares of Visa by 13.8% during the 2nd quarter. Schnieders Capital Management LLC. now owns 18,367 shares of the credit-card processor's stock valued at $6,521,000 after acquiring an additional 2,230 shares during the last quarter. Institutional investors own 82.15% of the company's stock.

Visa Stock Performance

Shares of V stock opened at $366.49 on Wednesday. The company's 50-day moving average is $338.90 and its 200 day moving average is $325.25. Visa Inc. has a one year low of $293.89 and a one year high of $371.16. 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 company has a market capitalization of $657.40 billion, a price-to-earnings ratio of 31.92, a price-to-earnings-growth ratio of 1.93 and a beta of 0.75.

Visa (NYSE:V - Get Free Report) last announced its quarterly 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. Visa had a net margin of 51.68% and a return on equity of 65.00%. The company had revenue of $11.63 billion during the quarter, compared to the consensus estimate of $11.40 billion. During the same quarter last year, the firm earned $2.98 earnings per share. The firm's quarterly revenue was up 14.4% compared to the same quarter last year. Sell-side analysts expect that Visa Inc. will post 13.12 EPS for the current fiscal year.

Visa announced that its Board of Directors has approved a share repurchase program on Tuesday, April 28th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the credit-card processor to buy up to 3.6% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's leadership believes its stock is undervalued.

Key Stories Impacting Visa

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Quarterly results exceeded expectations. Visa reported fiscal Q3 revenue of $11.63 billion, up 14.4% year over year and ahead of the roughly $11.40 billion consensus estimate. Adjusted EPS was $3.32, compared with expectations of $3.23 and $2.98 a year earlier. The company also reported $5.63 billion in profit. Visa Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Spending and transaction growth remained resilient. Double-digit growth in payments volume, cross-border volume and processed transactions indicates continued strength in consumer and business spending, supporting Visa’s core payments outlook. Visa Expands Money Movement as Card Spending Accelerates
• Positive Sentiment: New growth initiatives could expand Visa’s addressable market. Visa highlighted investments in stablecoin settlement, tokenized deposits, wallet infrastructure, commercial payments and money movement. Its participation in the OpenStandard consortium and plans to support OpenUSD could create longer-term opportunities beyond traditional card transactions. Visa Outlines Stablecoin Strategy
• Neutral Sentiment: X Money provides a potential incremental payments channel. Elon Musk’s X launched a broader banking and payments product using Visa-branded debit cards and Cross River Bank’s infrastructure. The partnership may increase card volumes, but its financial contribution to Visa is not yet clear. X Money Launches With Visa Debit Card
• Negative Sentiment: Margin concerns limited the market’s reaction. Despite the earnings beat, investors focused on profitability and expense trends, leading to weakness in extended trading. Visa’s planned restructuring also introduces execution and severance-cost risks.
• Negative Sentiment: Workforce reductions underscore a significant transition. Visa plans to eliminate approximately 2,600 positions, or 7% of its workforce, primarily in technology and product operations, as it uses AI to improve efficiency and redirect investment toward stablecoins, B2B payments and other growth areas. While potentially positive for costs, the cuts may raise concerns about disruption and future innovation. Visa Workforce Reduction

Analyst Ratings Changes

A number of research firms have recently issued reports on V. Truist Financial lifted their price objective on shares of Visa from $371.00 to $394.00 and gave the stock a "buy" rating in a report on Friday, July 24th. Cantor Fitzgerald reissued an "overweight" rating and set a $400.00 price objective on shares of Visa in a research note on Wednesday, April 29th. Loop Capital assumed coverage on Visa in a research note on Tuesday, March 31st. They issued a "buy" rating and a $387.00 target price on the stock. Morgan Stanley reiterated an "overweight" rating and issued a $415.00 price target on shares of Visa in a report on Wednesday, April 29th. Finally, Citigroup cut their price objective on Visa from $450.00 to $400.00 and set a "buy" rating on the stock in a research report on Tuesday, April 14th. Eight analysts have rated the stock with a Strong Buy rating and nineteen have issued a Buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Buy" and an average target price of $399.41.

Insider Activity

In other news, CFO Chris Suh sold 10,639 shares of Visa 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 completion of the sale, the chief financial officer directly owned 9,872 shares in the company, valued at $3,206,524.32. The trade was a 51.87% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Ryan Mcinerney sold 10,490 shares of Visa stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $343.99, for a total transaction of $3,608,455.10. Following the completion of the sale, the chief executive officer directly owned 15,174 shares of the company's stock, valued at approximately $5,219,704.26. This trade represents a 40.87% decrease in their position. 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 have sold a total of 44,126 shares of company stock valued at $14,928,871 in the last 90 days. 0.12% of the stock is currently owned by insiders.

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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