Cardinal Capital Management Inc. Buys New Position in Visa Inc. $V

Key Points

• Cardinal Capital Management initiated a Visa position of 118,305 shares valued at approximately $40.6 million during the second quarter. Institutional investors collectively own 82.15% of Visa’s outstanding stock.
• Visa reported quarterly EPS of $3.32 and revenue of $11.63 billion, exceeding analyst expectations, while revenue rose 14.4% year over year. The company also authorized a $20 billion share-repurchase program and declared a quarterly dividend of $0.67 per share.
• Analysts maintain a broadly positive outlook, with a consensus “Buy” rating and average price target of $413.58 versus the reported share price of $362.28. However, insiders sold a combined 90,759 shares worth about $32.4 million during the latest quarter.

Cardinal Capital Management Inc. bought a new stake in Visa Inc. (NYSE:V - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 118,305 shares of the credit-card processor's stock, valued at approximately $40,589,000.

Other institutional investors also recently added to or reduced their stakes in the company. Tema ETFs LLC increased its position in Visa by 5.3% during the second quarter. Tema ETFs LLC now owns 36,045 shares of the credit-card processor's stock worth $12,367,000 after acquiring an additional 1,807 shares during the period. Haven Capital Group Inc. raised its stake in Visa by 5.8% during the 2nd quarter. Haven Capital Group Inc. now owns 5,283 shares of the credit-card processor's stock valued at $1,813,000 after purchasing an additional 290 shares during the last quarter. Dagco Inc. boosted its holdings in Visa by 5.7% in the 2nd quarter. Dagco Inc. now owns 6,491 shares of the credit-card processor's stock valued at $2,227,000 after purchasing an additional 351 shares during the period. West Branch Capital LLC boosted its holdings in Visa by 0.4% in the 2nd quarter. West Branch Capital LLC now owns 22,041 shares of the credit-card processor's stock valued at $7,562,000 after purchasing an additional 79 shares during the period. Finally, Rise Advisors LLC grew its position in Visa by 4.2% in the 2nd quarter. Rise Advisors LLC now owns 1,341 shares of the credit-card processor's stock worth $460,000 after purchasing an additional 54 shares during the last quarter. 82.15% of the stock is owned by institutional investors.

Visa Trading Up 0.3%

Shares of Visa stock opened at $362.28 on Wednesday. Visa Inc. has a 52-week low of $293.89 and a 52-week high of $373.97. The firm has a market capitalization of $646.46 billion, a PE ratio of 30.81, a price-to-earnings-growth ratio of 1.94 and a beta of 0.74. 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 company's fifty day moving average price is $346.77 and its two-hundred day moving average price is $327.53.

Visa (NYSE:V - Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The credit-card processor reported $3.32 EPS for the quarter, topping 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 company had revenue of $11.63 billion during the quarter, compared to the consensus estimate of $11.40 billion. During the same period last year, the firm earned $2.98 EPS. The firm's revenue for the quarter was up 14.4% compared to the same quarter last year. On average, analysts expect that Visa Inc. will post 13.15 EPS for the current year.

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

Visa Dividend Announcement

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

Key Stories Impacting Visa

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Strong earnings and spending trends: Visa surpassed quarterly expectations with adjusted EPS of $3.32 versus the $3.23 consensus and revenue of $11.63 billion versus estimates of $11.40 billion. Revenue increased 14.4% year over year, supported by resilient consumer spending and anticipated World Cup-related travel activity. Q2 Earnings Outperformers: Visa and the Rest of the Credit Card Stocks
• Positive Sentiment: Analysts raised profit forecasts: Zacks Research increased its estimates across fiscal 2026 through fiscal 2028, including FY2026 EPS of $13.23, FY2027 EPS of $14.89 and FY2028 EPS of $16.81. Erste Group also lifted its forecasts and maintained a Buy rating, reinforcing expectations for continued earnings growth. Visa analyst estimates
• Positive Sentiment: Pismo-DPS expansion: Visa’s Pismo and DPS banking-infrastructure strategy could expand relationships with banks and fintechs, allowing the company to capture more value beyond traditional card payments. Will Pismo-DPS Help Visa Capture More of the Banking Value Chain?
• Neutral Sentiment: AI payments opportunity: Investment commentary identifies Visa as a potential beneficiary of AI-enabled commerce and payments, but the opportunity remains longer term and is not yet tied to specific financial guidance. Why Visa Could Be a Major Winner in the AI Payments Boom
• Negative Sentiment: Relative earnings reaction: Although Visa beat estimates, its stock initially underperformed Mastercard after results because investors appeared to view Mastercard’s accompanying growth catalysts more favorably. This suggests expectations for Visa are elevated and may limit the immediate benefit of another earnings beat. Visa vs. Mastercard: Same Strong Spending Story, Very Different Stock Reactions

Insiders Place Their Bets

In other news, insider Tullier Kelly Mahon sold 57,272 shares of the company's stock in a transaction that occurred on Thursday, July 30th. The stock was 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 approximately $18,125,140.14. This represents a 53.56% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Ryan Mcinerney sold 20,970 shares of the stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $340.25, for a total value of $7,135,042.50. Following the completion of the transaction, the chief executive officer directly owned 15,174 shares of the company's stock, valued at approximately $5,162,953.50. The trade was a 58.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 90,759 shares of company stock worth $32,375,779 over the last quarter. Company insiders own 0.12% of the company's stock.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. Cantor Fitzgerald set a $445.00 price objective on shares of Visa and gave the stock an "overweight" rating in a report on Monday, August 3rd. Piper Sandler reiterated an "overweight" rating and issued a $430.00 target price (up from $394.00) on shares of Visa in a research note on Wednesday, July 29th. Wolfe Research reissued 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. Robert W. Baird boosted their price target on Visa from $412.00 to $420.00 and gave the company an "outperform" rating in a research note on Wednesday, July 29th. Finally, Wells Fargo & Company restated an "overweight" rating and set a $432.00 price target (up from $412.00) on shares of Visa in a research note on Thursday, July 30th. Seven investment analysts have rated the stock with a Strong Buy rating and twenty-four have issued a Buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and an average target price of $413.58.

About Visa

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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