Morningstar Investment Management LLC Has $18.64 Million Stake in Visa Inc. $V

Key Points

• Morningstar Investment Management cut its Visa stake by 46.7% in the fourth quarter, selling 46,607 shares and leaving it with 53,151 shares worth about $18.64 million.
• Visa beat quarterly expectations, reporting $3.31 EPS on $11.23 billion in revenue, while revenue rose 17.1% year over year.
• The company also announced a $20 billion share buyback and a quarterly dividend of $0.67 per share, while analysts remain broadly positive with an average “Buy” rating and a target price of about $387.67.

Morningstar Investment Management LLC decreased its stake in shares of Visa Inc. (NYSE:V - Free Report) by 46.7% during the fourth quarter, according to the company in its most recent filing with the SEC. The fund owned 53,151 shares of the credit-card processor's stock after selling 46,607 shares during the period. Visa accounts for about 1.1% of Morningstar Investment Management LLC's holdings, making the stock its 15th largest position. Morningstar Investment Management LLC's holdings in Visa were worth $18,641,000 as of its most recent filing with the SEC.

A number of other hedge funds have also made changes to their positions in V. Clayton Financial Group LLC boosted its stake in Visa by 446.2% during the 4th quarter. Clayton Financial Group LLC now owns 71 shares of the credit-card processor's stock valued at $25,000 after purchasing an additional 58 shares during the period. Parvin Asset Management LLC boosted its stake in Visa by 200.0% during 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 boosted its stake in Visa by 102.7% during 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. bought a new stake in Visa during the 4th quarter valued at approximately $26,000. Finally, Dorato Capital Management bought a new stake in Visa during the 4th quarter valued at approximately $30,000. Institutional investors and hedge funds own 82.15% of the company's stock.

Visa Price Performance

Shares of V stock opened at $329.21 on Monday. The stock has a 50 day moving average of $312.77 and a two-hundred day moving average of $325.34. 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 12 month low of $293.89 and a 12 month high of $375.51. The company has a market capitalization of $590.53 billion, a P/E ratio of 28.68, a P/E/G ratio of 1.76 and a beta of 0.78.

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

Visa Announces Dividend

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

Visa declared that its board has approved a stock buyback 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 generally a sign that the company's board of directors believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. Cantor Fitzgerald restated an "overweight" rating and set a $400.00 target price on shares of Visa in a research note on Wednesday, April 29th. UBS Group increased their target price on Visa from $390.00 to $410.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. Truist Financial set a $371.00 target price on Visa and gave the company a "buy" rating in a research note on Tuesday, May 12th. Daiwa Securities Group upgraded Visa from a "neutral" rating to an "outperform" rating and set a $370.00 target price for the company in a research note on Monday, February 2nd. Finally, Bank of America assumed coverage on Visa in a research note on Thursday, March 5th. They set a "buy" rating and a $410.00 target price for the company. Six research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Visa has an average rating of "Buy" and an average price target of $387.67.

Insider Buying and Selling

In related news, CEO Ryan Mcinerney sold 31,455 shares of the firm's stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $340.14, for a total transaction of $10,699,103.70. Following the completion of the transaction, the chief executive officer owned 15,174 shares in the company, valued at $5,161,284.36. This trade represents a 67.46% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Chris Suh sold 10,639 shares of the firm'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 value of $3,455,653.59. Following the transaction, the chief financial officer owned 9,872 shares of the company's stock, valued at $3,206,524.32. This trade represents a 51.87% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 42,744 shares of company stock worth $14,356,010 in the last 90 days. 0.12% of the stock is owned by company insiders.

Visa News Roundup

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Visa is expanding its push into digital payments by testing stablecoin settlement in Canada and advancing AI-enabled “agentic commerce” tools, which could support long-term transaction growth and keep the company relevant as payment methods evolve. Visa Tests Stablecoin Settlement And AI Commerce To Shape Future Fees
• Positive Sentiment: Visa’s partnership with Trip.com to target digital-first travelers in Asia-Pacific adds another growth avenue in travel spending, a high-volume category that can boost payment network activity. Visa and Trip.com Partner to Reach Digital-First Travelers in Asia-Pacific
• Neutral Sentiment: Several reports framed Visa as a long-term beneficiary of crypto and blockchain adoption, but these pieces were more thesis-driven than near-term catalysts for the stock. Crypto and Blockchain Stocks Positioned for Long-Term Growth
• Neutral Sentiment: Visa continues to receive favorable analyst coverage, with brokerages assigning an average “Buy” rating, which supports sentiment but does not appear to be a new catalyst. Visa Inc. Receives Average Recommendation of "Buy" from Brokerages
• Negative Sentiment: Visa is facing renewed regulatory scrutiny in the U.K. and Europe, where authorities are pushing for more fee transparency and alternative payment options, raising the risk of pressure on card-network fees and market power. Should Visa & Mastercard Investors Worry About UK & Europe's Moves?
• Negative Sentiment: The UK Payments Systems Regulator also proposed new reporting rules for Visa and Mastercard after saying the two networks do not face effective competition, reinforcing concerns about tighter oversight. UK PSR proposes new reporting rules for Mastercard and Visa
• Negative Sentiment: Visa’s own fraud warnings highlight a rising threat from AI-powered scams and criminal targeting of consumers, which could increase compliance and security costs even if the company is helping defend against the problem. Visa Says Criminals Target People as Core Payment Security Tightens

Visa Company 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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