King Luther Capital Management Corp Has $323.76 Million Stock Holdings in Visa Inc. $V

Key Points

• King Luther Capital Management increased its Visa stake by 0.5% in the fourth quarter, ending with 923,168 shares valued at about $323.8 million. Visa now makes up 1.3% of the firm’s portfolio and is its 17th-largest holding.
• Visa posted stronger-than-expected quarterly results, reporting EPS of $3.31 versus estimates of $3.10 and revenue of $11.23 billion versus expectations of $10.75 billion. Revenue rose 17.1% year over year, and analysts still expect full-year EPS of 13.09.
• The company also announced a quarterly dividend of $0.67 and a new $20 billion share buyback authorization. Meanwhile, insider selling included CFO Chris Suh’s sale of 10,639 shares, while analysts remain broadly bullish with a consensus rating of “Buy.”

King Luther Capital Management Corp lifted its holdings in shares of Visa Inc. (NYSE:V - Free Report) by 0.5% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 923,168 shares of the credit-card processor's stock after purchasing an additional 4,812 shares during the period. Visa accounts for 1.3% of King Luther Capital Management Corp's holdings, making the stock its 17th biggest holding. King Luther Capital Management Corp owned about 0.05% of Visa worth $323,764,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Clayton Financial Group LLC raised its position in shares of Visa by 446.2% in the 4th quarter. Clayton Financial Group LLC now owns 71 shares of the credit-card processor's stock worth $25,000 after acquiring an additional 58 shares in the last quarter. PayPay Securities Corp raised its position in shares of Visa by 102.7% during the fourth quarter. PayPay Securities Corp now owns 75 shares of the credit-card processor's stock worth $26,000 after purchasing an additional 38 shares during the period. Cresta Advisors Ltd. acquired a new position in Visa during the fourth quarter worth $26,000. Parvin Asset Management LLC raised its holdings 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 worth $26,000 after acquiring an additional 50 shares during the last quarter. Finally, Dorato Capital Management purchased a new stake in shares of Visa in the fourth quarter worth approximately $30,000. 82.15% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several analysts have recently commented on V shares. Piper Sandler set a $160.00 target price on shares of Visa in a report on Wednesday, January 28th. Raymond James Financial reissued an "outperform" rating and issued a $389.00 target price on shares of Visa in a research report on Wednesday, April 29th. Freedom Capital raised shares of Visa from a "hold" rating to a "strong-buy" rating in a research report on Monday, February 16th. Rothschild & Co Redburn set a $385.00 price objective on Visa in a research note on Wednesday, January 28th. Finally, Macquarie Infrastructure reaffirmed an "outperform" rating and set a $410.00 target price on shares of Visa in a report on Friday, January 30th. Six research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Buy" and a consensus price target of $386.70.

Visa Stock Performance

Shares of NYSE V opened at $327.17 on Wednesday. The stock has a market cap of $586.87 billion, a price-to-earnings ratio of 28.50, a P/E/G ratio of 1.76 and a beta of 0.78. The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 0.64. Visa Inc. has a 1-year low of $293.89 and a 1-year high of $375.51. The stock's 50-day moving average is $313.63 and its 200 day moving average is $325.17.

Visa (NYSE:V - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The credit-card processor reported $3.31 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.10 by $0.21. The company had revenue of $11.23 billion during the quarter, compared to analysts' expectations of $10.75 billion. Visa had a net margin of 51.68% and a return on equity of 65.00%. The firm's revenue was up 17.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.76 EPS. On average, sell-side analysts anticipate that Visa Inc. will post 13.09 EPS for the current fiscal year.

Visa Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Tuesday, May 12th will be given a $0.67 dividend. The ex-dividend date is Tuesday, May 12th. This represents a $2.68 annualized dividend and a yield of 0.8%. Visa's payout ratio is presently 23.34%.

Visa declared that its board has approved a share buyback plan on Tuesday, April 28th that permits the company to repurchase $20.00 billion in shares. This repurchase authorization permits the credit-card processor to buy up to 3.6% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Insider Activity at Visa

In other Visa news, CFO Chris Suh sold 10,639 shares of the company'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 completion of the transaction, the chief financial officer owned 9,872 shares of the company's stock, valued at $3,206,524.32. This represents a 51.87% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Lloyd Carney sold 650 shares of the firm's stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $309.62, for a total value of $201,253.00. Following the completion of the sale, the director directly owned 2,679 shares of the company's stock, valued at $829,471.98. The trade was a 19.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 42,744 shares of company stock worth $14,356,010 in the last three months. 0.12% of the stock is owned by insiders.

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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