Charles Schwab Trust Co Cuts Position in Visa Inc. $V

Key Points

• Charles Schwab Trust Co reduced its holdings in Visa Inc. by 45.4% during the second quarter, now owning 2,201 shares valued at $781,000.
• Visa reported a quarterly earnings per share (EPS) of $2.98, exceeding estimates and showing a 14.3% year-over-year revenue increase to $10.17 billion.
• The company recently announced a quarterly dividend of $0.59, which translates to a 0.7% dividend yield and a payout ratio of 23.05%.

Charles Schwab Trust Co lessened its position in shares of Visa Inc. (NYSE:V - Free Report) by 45.4% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,201 shares of the credit-card processor's stock after selling 1,833 shares during the quarter. Charles Schwab Trust Co's holdings in Visa were worth $781,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in V. Nuveen LLC purchased a new position in Visa during the 1st quarter valued at approximately $3,518,533,000. Vanguard Group Inc. grew its holdings in Visa by 1.1% during the 1st quarter. Vanguard Group Inc. now owns 161,082,431 shares of the credit-card processor's stock valued at $56,452,949,000 after buying an additional 1,677,088 shares in the last quarter. Wellington Management Group LLP grew its holdings in Visa by 17.7% during the 1st quarter. Wellington Management Group LLP now owns 10,979,720 shares of the credit-card processor's stock valued at $3,847,953,000 after buying an additional 1,651,954 shares in the last quarter. MUFG Securities EMEA plc purchased a new position in Visa during the 1st quarter valued at approximately $373,240,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Visa by 7.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 14,277,146 shares of the credit-card processor's stock worth $5,003,569,000 after purchasing an additional 955,392 shares during the period. Hedge funds and other institutional investors own 82.15% of the company's stock.

Visa Price Performance

V opened at $340.27 on Tuesday. The business has a fifty day moving average of $344.44 and a 200 day moving average of $346.54. Visa Inc. has a 52-week low of $273.20 and a 52-week high of $375.51. 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 $623.64 billion, a P/E ratio of 33.23, a PEG ratio of 2.24 and a beta of 0.92.

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

Visa Dividend Announcement

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

Analyst Ratings Changes

A number of brokerages have recently commented on V. Macquarie lifted their target price on Visa from $380.00 to $425.00 and gave the stock an "outperform" rating in a report on Thursday, July 31st. Citigroup began coverage on Visa in a report on Monday, June 2nd. They issued a "buy" rating for the company. Barclays reiterated an "overweight" rating and issued a $408.00 target price (up previously from $396.00) on shares of Visa in a report on Thursday, July 31st. Morgan Stanley lifted their target price on Visa from $386.00 to $402.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Finally, UBS Group reiterated a "buy" rating and issued a $415.00 target price (up previously from $405.00) on shares of Visa in a report on Wednesday, July 30th. One analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $385.96.

Insider Activity

In other news, General Counsel Julie B. Rottenberg sold 2,027 shares of the firm's stock in a transaction on Monday, August 18th. The stock was sold at an average price of $344.02, for a total transaction of $697,328.54. Following the transaction, the general counsel owned 11,925 shares in the company, valued at approximately $4,102,438.50. This trade represents a 14.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 0.13% of the company's stock.

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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