Forum Financial Management LP Sells 8,279 Shares of Visa Inc. $V

Key Points

• Forum Financial Management LP cut its Visa stake by 70.6% in the first quarter, selling 8,279 shares and ending with 3,442 shares worth about $1.04 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.
• The company continued rewarding shareholders and supporting its stock with a $20 billion share repurchase program plus a quarterly dividend of $0.67 per share, while analysts still view the stock favorably with a consensus Buy rating.

Forum Financial Management LP decreased its position in Visa Inc. (NYSE:V - Free Report) by 70.6% in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 3,442 shares of the credit-card processor's stock after selling 8,279 shares during the period. Forum Financial Management LP's holdings in Visa were worth $1,040,000 at the end of the most recent quarter.

A number of other large investors have also made changes to their positions in the company. Clayton Financial Group LLC raised its position in shares of Visa by 446.2% during the fourth quarter. Clayton Financial Group LLC now owns 71 shares of the credit-card processor's stock worth $25,000 after purchasing an additional 58 shares during the period. Parvin Asset Management LLC grew its position in shares of Visa by 200.0% in the 3rd quarter. Parvin Asset Management LLC now owns 75 shares of the credit-card processor's stock valued at $26,000 after purchasing an additional 50 shares during the period. PayPay Securities Corp grew its position in shares of Visa by 102.7% in the 4th quarter. PayPay Securities Corp now owns 75 shares of the credit-card processor's stock valued at $26,000 after purchasing an additional 38 shares during the period. Cresta Advisors Ltd. acquired a new position in shares of Visa in the 4th quarter valued at approximately $26,000. Finally, Dorato Capital Management bought a new stake in Visa during the 4th quarter worth approximately $30,000. Institutional investors own 82.15% of the company's stock.

Key Visa News

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Visa is participating in the launch of the Open USD stablecoin initiative alongside major players like Stripe, Google, and BlackRock, a sign that the company is staying central to the next wave of digital payments and money movement. Visa and Google Sign on to Use Money Movement Stablecoin OpenUSD
• Positive Sentiment: Visa’s new travel platform expansion and cross-border partnership push could support transaction growth, especially as travel and experience spending remain strong. Visa redefines its role in travel with the global expansion of Visa Destinations
• Positive Sentiment: Visa said online deal hunting is helping consumers keep spending on discretionary purchases, which is encouraging for payment volume trends. Visa Says Online Deal Hunting Sustains Consumers' Discretionary Spending
• Neutral Sentiment: Visa also unveiled smartphone-based tools for small businesses to accept payments through Visa Pay, Visa Accept and Visa Direct, which supports its long-term growth story but is more incremental near term. Visa Brings Card Acceptance to SMB Smartphones
• Negative Sentiment: CEO Ryan McInerney sold 20,970 shares in a pre-arranged transaction, which can create a small amount of investor caution even though it was conducted under a 10b5-1 plan. SEC filing for CEO stock sale

Visa Stock Up 0.3%

Shares of V stock opened at $342.63 on Wednesday. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.09 and a current ratio of 1.09. The firm's 50-day moving average is $324.40 and its 200-day moving average is $324.52. The stock has a market cap of $614.60 billion, a price-to-earnings ratio of 29.85, a PEG ratio of 1.82 and a beta of 0.77. Visa Inc. has a 52-week low of $293.89 and a 52-week high of $359.66.

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

Visa Dividend Announcement

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

Visa announced that its board has initiated a share 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 reacquire up to 3.6% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board believes its stock is undervalued.

Analyst Ratings Changes

V has been the topic of several research analyst reports. Piper Sandler assumed coverage on shares of Visa in a report on Monday. They set an "overweight" rating and a $394.00 target price on the stock. Weiss Ratings cut shares of Visa from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, April 16th. Truist Financial set a $371.00 price objective on shares of Visa and gave the stock a "buy" rating in a research report on Tuesday, May 12th. Oppenheimer restated an "outperform" rating and set a $403.00 price objective (up from $391.00) on shares of Visa in a report on Wednesday, April 29th. Finally, Bank of America started coverage on shares of Visa in a research report on Thursday, March 5th. They issued a "buy" rating and a $410.00 price objective on the stock. Six investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, Visa currently has a consensus rating of "Buy" and an average target price of $397.96.

Insider Buying and Selling

In related news, CFO Chris Suh sold 10,639 shares of the business's stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $324.81, for a total transaction of $3,455,653.59. Following the transaction, the chief financial officer directly owned 9,872 shares of the company's stock, valued at approximately $3,206,524.32. The trade was a 51.87% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Ryan Mcinerney sold 20,970 shares of the stock in a transaction on Monday, June 29th. The shares were sold at an average price of $340.25, for a total value of $7,135,042.50. Following the completion of the sale, the chief executive officer owned 15,174 shares in the company, valued at approximately $5,162,953.50. This trade represents a 58.02% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 63,064 shares of company stock valued at $21,289,800. 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.

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