IMS Capital Management Takes Position in Visa Inc. $V

Key Points

• IMS Capital Management acquired a new stake in Visa Inc., purchasing 10,440 shares valued at approximately $3.7 million, which represents 1.7% of their total holdings.
• Visa reported a Q2 EPS of $2.98, exceeding estimates and achieving a record revenue of $10.17 billion, reflecting a 14.3% year-over-year increase.
• The company announced a quarterly dividend of $0.59 per share, translating to an annualized dividend of $2.36 and a yield of 0.7%.

IMS Capital Management purchased a new stake in Visa Inc. (NYSE:V - Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The firm purchased 10,440 shares of the credit-card processor's stock, valued at approximately $3,707,000. Visa makes up 1.7% of IMS Capital Management's holdings, making the stock its 13th largest holding.

A number of other institutional investors have also modified their holdings of V. Keystone Global Partners LLC bought a new stake in shares of Visa in the 1st quarter valued at about $26,000. von Borstel & Associates Inc. bought a new stake in shares of Visa in the 1st quarter valued at about $27,000. Family Legacy Financial Solutions LLC acquired a new stake in Visa in the 2nd quarter worth approximately $28,000. Cranbrook Wealth Management LLC boosted its stake in Visa by 82.0% in the 2nd 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 in the last quarter. Finally, 1 North Wealth Services LLC acquired a new stake in Visa in the 1st quarter worth approximately $38,000. 82.15% of the stock is currently owned by institutional investors.

Visa Stock Performance

Shares of NYSE V opened at $338.69 on Thursday. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 0.52. Visa Inc. has a 12 month low of $268.23 and a 12 month high of $375.51. The company has a 50 day simple moving average of $345.19 and a two-hundred day simple moving average of $346.27. The stock has a market cap of $620.75 billion, a price-to-earnings ratio of 33.08, a PEG ratio of 2.25 and a beta of 0.92.

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

Visa Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 2nd. Investors of record on Tuesday, August 12th were paid 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 payout ratio is currently 23.05%.

Insider Buying and Selling at Visa

In related news, General Counsel Julie B. Rottenberg sold 2,027 shares of the business's stock in a transaction on Monday, August 18th. The shares were 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. The trade was a 14.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Ryan Mcinerney sold 8,630 shares of the business's stock in a transaction on Tuesday, July 1st. The shares were sold at an average price of $353.82, for a total transaction of $3,053,466.60. Following the completion of the transaction, the chief executive officer owned 537 shares of the company's stock, valued at approximately $190,001.34. This represents a 94.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.13% of the company's stock.

Wall Street Analysts Forecast Growth

V has been the subject of a number of recent analyst reports. Erste Group Bank cut shares of Visa from a "buy" rating to a "hold" rating in a research note on Monday. Macquarie lifted their target price on shares of Visa from $380.00 to $425.00 and gave the stock an "outperform" rating in a research note on Thursday, July 31st. Mizuho upgraded shares of Visa from a "neutral" rating to an "outperform" rating and lifted their target price for the stock from $359.00 to $425.00 in a research note on Thursday, June 5th. The Goldman Sachs Group initiated coverage on shares of Visa in a research note on Monday, June 2nd. They issued a "neutral" rating for the company. Finally, Truist Financial lowered their target price on shares of Visa from $400.00 to $397.00 and set a "buy" rating for the company in a research note on Thursday, July 17th. One research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $385.96.

Visa Company Profile

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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