Capital Management Associates Inc Reduces Holdings in Visa Inc. $V

Key Points

• Capital Management Associates Inc has significantly reduced its stake in Visa Inc. by 48.6% during the second quarter, now holding 1,242 shares worth approximately $441,000.
• Analysts have shown positive sentiment towards Visa, with multiple firms raising their price targets; Morgan Stanley increased its target from $386 to $402, indicating a bullish outlook.
• Visa's recent quarterly earnings report revealed $2.98 earnings per share, surpassing expectations and illustrating a 14.3% year-over-year revenue growth to $10.17 billion.

Capital Management Associates Inc lowered its stake in shares of Visa Inc. (NYSE:V - Free Report) by 48.6% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,242 shares of the credit-card processor's stock after selling 1,176 shares during the quarter. Capital Management Associates Inc's holdings in Visa were worth $441,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also made changes to their positions in the stock. Keystone Global Partners LLC acquired a new position in Visa in the first quarter worth $26,000. von Borstel & Associates Inc. acquired a new position in Visa in the first quarter worth $27,000. Family Legacy Financial Solutions LLC acquired a new position in Visa in the second quarter worth $28,000. Cranbrook Wealth Management LLC boosted its holdings in Visa by 82.0% in the second quarter. Cranbrook Wealth Management LLC now owns 91 shares of the credit-card processor's stock worth $32,000 after purchasing an additional 41 shares during the period. Finally, 1 North Wealth Services LLC acquired a new position in Visa in the first quarter worth $38,000. Institutional investors and hedge funds own 82.15% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have commented on the stock. Morgan Stanley lifted their price objective on shares of Visa from $386.00 to $402.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Raymond James Financial reiterated an "outperform" rating on shares of Visa in a research note on Wednesday, July 30th. Barclays reiterated an "overweight" rating and issued a $408.00 target price (up from $396.00) on shares of Visa in a research note on Thursday, July 31st. Robert W. Baird set a $410.00 target price on Visa and gave the company an "outperform" rating in a research note on Monday, October 6th. Finally, Deutsche Bank Aktiengesellschaft initiated coverage on Visa in a research note on Thursday, July 17th. They issued a "buy" rating and a $410.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $389.00.

Insider Activity

In related news, CEO Ryan Mcinerney sold 10,485 shares of Visa stock in a transaction dated Wednesday, October 1st. The stock was sold at an average price of $342.30, for a total value of $3,589,015.50. Following the transaction, the chief executive officer owned 537 shares of the company's stock, valued at approximately $183,815.10. This trade represents a 95.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, General Counsel Julie B. Rottenberg sold 2,027 shares of Visa stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $344.02, for a total value of $697,328.54. Following the completion of the transaction, the general counsel directly owned 11,925 shares in the company, valued at $4,102,438.50. This represents a 14.53% decrease in their position. The disclosure for this sale can be found here. 0.13% of the stock is currently owned by insiders.

Visa Price Performance

Shares of NYSE V opened at $343.63 on Friday. Visa Inc. has a fifty-two week low of $275.37 and a fifty-two week high of $375.51. The firm's 50-day simple moving average is $343.77 and its 200 day simple moving average is $346.99. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 0.52. The stock has a market cap of $629.79 billion, a P/E ratio of 33.56, a P/E/G ratio of 2.04 and a beta of 0.90.

Visa (NYSE:V - Get Free Report) last issued its quarterly earnings data on Tuesday, July 29th. The credit-card processor reported $2.98 earnings per share for the quarter, beating analysts' consensus estimates of $2.85 by $0.13. Visa had a net margin of 52.16% and a return on equity of 58.93%. The business had revenue of $10.17 billion for the quarter, compared to analysts' expectations of $9.82 billion. During the same period in the previous year, the business earned $2.42 earnings per share. The company's revenue was up 14.3% on a year-over-year basis. Equities analysts expect that Visa Inc. will post 11.3 EPS for the current year.

Visa Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 2nd. Shareholders of record on Tuesday, August 12th were given a $0.59 dividend. The ex-dividend date was Tuesday, August 12th. This represents a $2.36 annualized dividend and a yield of 0.7%. Visa's payout ratio is 23.05%.

About Visa

Visa Inc operates as a payment technology company in the United States and internationally. The company operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. It also offers credit, debit, and prepaid card products; tap to pay, tokenization, and click to pay services; Visa Direct, a solution that facilitates the delivery of funds to eligible cards, deposit accounts, and digital wallets; Visa B2B Connect, a multilateral business-to-business cross-border payments network; Visa Cross-Border Solution, a cross-border consumer payments solution; and Visa DPS that provides a range of value-added services, including fraud mitigation, dispute management, data analytics, campaign management, a suite of digital solutions, and contact center services.

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