Capital Group Private Client Services Inc. Sells 3,703 Shares of Visa Inc. $V

Key Points

• Capital Group Private Client Services Inc. trimmed its Visa stake by 2.9% in the fourth quarter, selling 3,703 shares and leaving it with 122,484 shares valued at about $42.96 million.
• Visa reported strong quarterly results, with EPS of $3.31 beating estimates and revenue rising 17.1% year over year to $11.23 billion, while also maintaining a high return on equity and solid margins.
• The company announced a $20 billion share repurchase program and paid a quarterly dividend of $0.67 per share, underscoring continued capital returns to shareholders.

Capital Group Private Client Services Inc. cut its stake in Visa Inc. (NYSE:V - Free Report) by 2.9% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 122,484 shares of the credit-card processor's stock after selling 3,703 shares during the quarter. Visa comprises approximately 0.7% of Capital Group Private Client Services Inc.'s holdings, making the stock its 23rd largest holding. Capital Group Private Client Services Inc.'s holdings in Visa were worth $42,956,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Clayton Financial Group LLC lifted its position in Visa by 446.2% in the fourth quarter. Clayton Financial Group LLC now owns 71 shares of the credit-card processor's stock worth $25,000 after buying an additional 58 shares during the last quarter. PayPay Securities Corp lifted its position in Visa by 102.7% in the fourth quarter. PayPay Securities Corp now owns 75 shares of the credit-card processor's stock worth $26,000 after buying an additional 38 shares during the last quarter. Cresta Advisors Ltd. bought a new stake in Visa in the fourth quarter worth $26,000. Parvin Asset Management LLC lifted its position in Visa by 200.0% in the third quarter. Parvin Asset Management LLC now owns 75 shares of the credit-card processor's stock worth $26,000 after buying an additional 50 shares during the last quarter. Finally, Dorato Capital Management bought a new stake in Visa in the fourth quarter worth $30,000. 82.15% of the stock is currently owned by institutional investors.

Visa Stock Performance

V stock opened at $324.03 on Friday. 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 fifty day simple moving average is $316.53 and its two-hundred day simple moving average is $324.49. Visa Inc. has a twelve month low of $293.89 and a twelve month high of $375.51. The firm has a market cap of $581.24 billion, a price-to-earnings ratio of 28.23, a PEG ratio of 1.73 and a beta of 0.77.

Visa (NYSE:V - Get Free Report) last released its earnings results on Tuesday, April 28th. The credit-card processor reported $3.31 earnings per share for the quarter, topping analysts' consensus estimates of $3.10 by $0.21. Visa had a return on equity of 65.00% and a net margin of 51.68%.The business had revenue of $11.23 billion for the quarter, compared to analyst estimates of $10.75 billion. During the same quarter last year, the firm posted $2.76 earnings per share. The business's revenue was up 17.1% compared to the same quarter last year. Analysts predict that Visa Inc. will post 13.09 earnings per share for the current year.

Visa Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, June 1st. Shareholders of record on Tuesday, May 12th were paid a $0.67 dividend. The ex-dividend date was Tuesday, May 12th. This represents a $2.68 dividend on an annualized basis and a yield of 0.8%. Visa's dividend payout ratio (DPR) is presently 23.34%.

Visa announced that its board has authorized a stock repurchase plan on Tuesday, April 28th that permits the company to repurchase $20.00 billion in shares. This repurchase authorization permits the credit-card processor to repurchase up to 3.6% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

More Visa News

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Visa is testing private stablecoin settlement with Brale on the Canton Network, a proof of concept aimed at enabling institutional payments with more privacy and efficiency. Investors may see this as evidence that Visa is expanding its payments infrastructure into a potentially high-growth use case. Article: Visa tests private stablecoin settlement with Brale, Canton
• Positive Sentiment: Visa’s new partnership with Brale reinforces its stablecoin strategy and suggests the company is actively building tools for institutional blockchain settlement, which could strengthen long-term growth prospects. Article: How Visa Advances Stablecoin Payment Vision With Brale Partnership?
• Positive Sentiment: Reports that Visa, Mastercard, Stripe and others are collaborating on a new stablecoin platform suggest major payments players are validating the opportunity, which may help Visa if the initiative gains merchant traction. Article: Visa Mastercard Stablecoin Push Tests Circle USDC And Rich Valuation
• Neutral Sentiment: Visa also announced leadership appointments in Asia Pacific to support value-added services and Southeast Asia growth, a positive operating update but likely not a major near-term stock driver. Article: Visa Announces Asia Pacific Leadership Appointments to Scale Value-Added Services and Southeast Asia Growth
• Negative Sentiment: News that Visa and Mastercard payments are being halted in Cuba adds a small regional headwind, though the revenue impact is likely limited compared with Visa’s overall global business. Article: Visa, Mastercard payments to be halted in Cuba amid new US sanctions

Wall Street Analyst Weigh In

A number of analysts recently issued reports on V shares. Weiss Ratings downgraded Visa from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Thursday, April 16th. Freedom Capital upgraded Visa from a "hold" rating to a "strong-buy" rating in a research report on Monday, February 16th. Raymond James Financial restated an "outperform" rating and issued a $389.00 price target on shares of Visa in a research report on Wednesday, April 29th. Loop Capital started coverage on Visa in a research report on Tuesday, March 31st. They issued a "buy" rating and a $387.00 price target for the company. Finally, UBS Group raised their price target on Visa from $390.00 to $410.00 and gave the stock a "buy" rating in a research report on Wednesday, April 29th. Six research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Buy" and a consensus target price of $387.78.

Insiders Place Their Bets

In other Visa news, CEO Ryan Mcinerney sold 31,455 shares of the stock in a transaction on Wednesday, April 29th. The stock was sold at an average price of $340.14, for a total value of $10,699,103.70. Following the sale, the chief executive officer owned 15,174 shares in the company, valued at $5,161,284.36. This trade represents a 67.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Lloyd Carney sold 650 shares of the stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $309.62, for a total value of $201,253.00. Following the completion of the sale, the director owned 2,679 shares in the company, valued at approximately $829,471.98. The trade was a 19.53% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 42,744 shares of company stock worth $14,356,010 over the last quarter. Company 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.