Capital International Inc. CA Grows Stock Holdings in Visa Inc. $V

Key Points

• Capital International Inc. CA increased its Visa stake by 16% in Q3, buying 66,948 shares to hold 486,476 shares worth about $166.07 million, making Visa its 14th-largest position (1.3% of holdings).
• Institutional ownership is high at 82.15%, with large recent moves including Norges Bank's new ~ $7.03 billion stake, TCI raising its position to 19.07 million shares, and Vanguard owning 162.54 million shares (~$57.7 billion).
• Visa beat quarterly estimates, reporting EPS of $3.17 versus $3.14 and revenue of $10.90 billion (up 14.6% year-over-year), while maintaining strong profitability (net margin 50.23%) and paying a $0.67 quarterly dividend (0.8% yield).

Capital International Inc. CA increased its holdings in shares of Visa Inc. (NYSE:V - Free Report) by 16.0% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 486,476 shares of the credit-card processor's stock after purchasing an additional 66,948 shares during the period. Visa makes up 1.3% of Capital International Inc. CA's holdings, making the stock its 14th biggest position. Capital International Inc. CA's holdings in Visa were worth $166,073,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the business. Norges Bank acquired a new stake in Visa during the 2nd quarter worth about $7,034,939,000. TCI Fund Management Ltd. boosted its stake in shares of Visa by 14.6% in the second quarter. TCI Fund Management Ltd. now owns 19,067,558 shares of the credit-card processor's stock worth $6,769,936,000 after buying an additional 2,429,996 shares during the last quarter. Corient Private Wealth LLC grew its holdings in Visa by 110.4% during the second quarter. Corient Private Wealth LLC now owns 3,954,937 shares of the credit-card processor's stock worth $1,396,930,000 after acquiring an additional 2,075,289 shares during the period. Vanguard Group Inc. raised its position in Visa by 0.9% during the second quarter. Vanguard Group Inc. now owns 162,544,006 shares of the credit-card processor's stock valued at $57,711,249,000 after acquiring an additional 1,461,575 shares in the last quarter. Finally, Geode Capital Management LLC lifted its holdings in Visa by 2.5% in the second quarter. Geode Capital Management LLC now owns 43,096,802 shares of the credit-card processor's stock valued at $15,253,245,000 after acquiring an additional 1,067,631 shares during the period. 82.15% of the stock is currently owned by institutional investors and hedge funds.

Visa Stock Performance

NYSE:V opened at $316.03 on Tuesday. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.11 and a current ratio of 1.11. The stock has a market capitalization of $573.65 billion, a PE ratio of 29.65, a P/E/G ratio of 1.82 and a beta of 0.78. Visa Inc. has a fifty-two week low of $299.00 and a fifty-two week high of $375.51. The company has a fifty day moving average of $328.80 and a two-hundred day moving average of $337.05.

Visa (NYSE:V - Get Free Report) last announced its earnings results on Thursday, January 29th. The credit-card processor reported $3.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.14 by $0.03. The business had revenue of $10.90 billion for the quarter, compared to analyst estimates of $10.69 billion. Visa had a net margin of 50.23% and a return on equity of 61.74%. The company's revenue for the quarter was up 14.6% compared to the same quarter last year. During the same quarter last year, the business earned $2.75 earnings per share. As a group, research analysts forecast that Visa Inc. will post 11.3 earnings per share for the current fiscal year.

Visa Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, March 2nd. Investors of record on Tuesday, February 10th were issued a $0.67 dividend. This represents a $2.68 annualized dividend and a yield of 0.8%. The ex-dividend date was Tuesday, February 10th. Visa's payout ratio is presently 25.14%.

Analyst Ratings Changes

Several research firms have recently weighed in on V. Morgan Stanley reaffirmed an "overweight" rating and set a $411.00 target price (up from $398.00) on shares of Visa in a report on Friday, January 30th. Piper Sandler set a $160.00 price target on shares of Visa in a research report on Wednesday, January 28th. Cantor Fitzgerald raised shares of Visa to a "strong-buy" rating in a report on Tuesday, January 27th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $395.00 price objective on shares of Visa in a research report on Friday, January 30th. Finally, TD Cowen restated a "buy" rating on shares of Visa in a research report on Friday, January 30th. Seven equities research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Buy" and a consensus price target of $392.65.

Insider Buying and Selling

In other Visa news, CEO Ryan Mcinerney sold 10,485 shares of the business's stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $349.18, for a total transaction of $3,661,152.30. Following the completion of the sale, the chief executive officer directly owned 9,401 shares in the company, valued at approximately $3,282,641.18. The trade was a 52.73% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.12% of the company's stock.

Visa Company 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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