Rayburn West Financial Services LLC Invests $1.23 Million in Visa Inc. $V

Key Points

• Rayburn West Financial Services opened a new position in Visa during the fourth quarter, buying 3,492 shares worth about $1.23 million.
• Visa reported strong quarterly results, with EPS of $3.31 beating estimates and revenue of $11.23 billion topping expectations, while revenue rose 17.1% year over year.
• The company’s board authorized a $20 billion share buyback and Visa also announced a quarterly dividend of $0.67 per share, signaling continued capital returns to shareholders.

Rayburn West Financial Services LLC bought a new position in Visa Inc. (NYSE:V - Free Report) during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 3,492 shares of the credit-card processor's stock, valued at approximately $1,225,000.

Other large investors have also made changes to their positions in the company. Clayton Financial Group LLC grew its holdings 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 purchasing an additional 58 shares during the last quarter. PayPay Securities Corp grew its holdings 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 worth $26,000 after purchasing an additional 38 shares during the last quarter. Cresta Advisors Ltd. bought a new stake in shares of Visa in the 4th quarter worth about $26,000. Parvin Asset Management LLC grew 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 purchasing an additional 50 shares during the last quarter. Finally, Dorato Capital Management bought a new stake in shares of Visa in the 4th quarter worth about $30,000. Institutional investors own 82.15% of the company's stock.

Insider Buying and Selling

In related news, Director Lloyd Carney sold 650 shares of the stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $309.62, for a total transaction of $201,253.00. Following the completion of the sale, the director directly owned 2,679 shares of the company's stock, valued at approximately $829,471.98. This represents a 19.53% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 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 $3,206,524.32. This represents a 51.87% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 42,744 shares of company stock valued at $14,356,010. 0.12% of the stock is owned by corporate insiders.

Visa Stock Down 1.7%

Shares of NYSE V opened at $320.77 on Thursday. The firm's 50-day simple moving average is $311.08 and its 200 day simple moving average is $326.07. The company has a market cap of $575.39 billion, a price-to-earnings ratio of 27.94, a price-to-earnings-growth ratio of 1.75 and a beta of 0.78. The company has a quick ratio of 1.09, a current 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.

Visa (NYSE:V - Get Free Report) last released its earnings results 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 for the quarter, compared to the consensus estimate of $10.75 billion. Visa had a net margin of 51.68% and a return on equity of 65.00%. The company's revenue was up 17.1% compared to the same quarter last year. During the same period in the prior year, the company posted $2.76 EPS. On average, research analysts expect that Visa Inc. will post 13.08 earnings per share for the current fiscal year.

Visa announced that its board has authorized a share buyback program on Tuesday, April 28th that permits the company to buyback $20.00 billion in shares. This buyback authorization permits the credit-card processor to reacquire up to 3.6% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's board believes its shares are undervalued.

Visa Dividend Announcement

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

Wall Street Analyst Weigh In

Several research firms have recently weighed in on V. Weiss Ratings lowered shares of Visa from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, April 16th. Loop Capital initiated coverage on shares of Visa in a research report on Tuesday, March 31st. They set a "buy" rating and a $387.00 price target on the stock. Daiwa Securities Group upgraded shares of Visa from a "neutral" rating to an "outperform" rating and set a $370.00 price target on the stock in a research report on Monday, February 2nd. UBS Group upped their price target on shares of Visa from $390.00 to $410.00 and gave the stock a "buy" rating in a research report on Wednesday, April 29th. Finally, Evercore set a $350.00 price target on shares of Visa in a research report on Wednesday, April 29th. Six research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Buy" and an average price target of $387.67.

Key Visa News

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Visa expanded its Flexible Credential offering in the U.K. with Zilch and Thredd, allowing consumers to choose among payment options at checkout through one card. That supports Visa’s push into more flexible, digital-first payment experiences and could help drive network usage. Visa Flexible Credential Brings More Flexible Ways to Pay to Zilch Cardholders in the UK
• Positive Sentiment: Visa was highlighted in commentary about strong digital payments trends, with analysts pointing to contactless payments, BNPL adoption, and cross-border growth as long-term tailwinds for the financial transaction sector. 5 Financial Transaction Stocks to Watch Amid Digital Advancements
• Positive Sentiment: Visa continues to be viewed as a beneficiary of strong consumer spending and digital payment growth, with another article noting record U.S. consumption as a favorable backdrop for fintech and card networks. U.S. Consumer Spending Tops $21.86T: 5 Fintech Stocks Under $75
• Neutral Sentiment: Visa received additional attention for rolling out tap-based identity verification with Fidelity Bank Bahamas, another sign of product innovation but not necessarily an immediate earnings catalyst. Visa launches tap-based identity verification with Fidelity Bank Bahamas
• Negative Sentiment: Visa CFO Chris Suh sold 10,639 shares at an average price of $324.81, trimming his ownership by more than half. Insider selling can weigh on sentiment, even if it does not change the company’s fundamentals. SEC Form 4 filing

About Visa

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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