Roundview Capital LLC Boosts Stake in Visa Inc. $V

Key Points

• Roundview Capital LLC increased its stake in Visa by 6.0% in the fourth quarter, adding 3,148 shares to bring its total to 55,839 shares valued at about $19.6 million.
• Visa reported stronger-than-expected quarterly results, with EPS of $3.31 and revenue of $11.23 billion, both topping analyst estimates and marking 17.1% year-over-year revenue growth.
• The company also announced shareholder-friendly capital returns, including a $20 billion stock buyback authorization and a quarterly dividend of $0.67 per share, while analysts largely kept a bullish outlook with a consensus “Buy” rating.

Roundview Capital LLC grew its position in shares of Visa Inc. (NYSE:V - Free Report) by 6.0% during the fourth quarter, according to its most recent filing with the SEC. The firm owned 55,839 shares of the credit-card processor's stock after acquiring an additional 3,148 shares during the period. Visa comprises about 1.2% of Roundview Capital LLC's holdings, making the stock its 17th largest holding. Roundview Capital LLC's holdings in Visa were worth $19,583,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Clayton Financial Group LLC grew its holdings in shares of Visa by 446.2% during 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 during the period. PayPay Securities Corp grew its holdings in shares of Visa by 102.7% during the 4th quarter. PayPay Securities Corp now owns 75 shares of the credit-card processor's stock worth $26,000 after acquiring an additional 38 shares during the period. Cresta Advisors Ltd. purchased a new position in shares of Visa during the 4th quarter worth approximately $26,000. Parvin Asset Management LLC grew its holdings in shares of Visa by 200.0% during 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 period. Finally, Dorato Capital Management purchased a new position in shares of Visa during the 4th quarter worth approximately $30,000. Hedge funds and other institutional investors own 82.15% of the company's stock.

Visa Stock Performance

Visa stock opened at $327.17 on Wednesday. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 0.64. The company has a market capitalization of $586.87 billion, a P/E ratio of 28.50, a PEG ratio of 1.76 and a beta of 0.78. The stock's 50 day moving average is $313.63 and its 200 day moving average is $325.17. Visa Inc. has a twelve month low of $293.89 and a twelve month high of $375.51.

Visa (NYSE:V - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The credit-card processor reported $3.31 earnings per share for the quarter, topping the consensus estimate 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 return on equity of 65.00% and a net margin of 51.68%.The firm's quarterly revenue was up 17.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.76 EPS. On average, equities research analysts predict that Visa Inc. will post 13.09 earnings per share for the current fiscal year.

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

Visa Announces Dividend

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

Insider Buying and Selling

In other Visa news, CEO Ryan Mcinerney sold 31,455 shares of the stock in a transaction 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 sale, the chief executive officer directly owned 15,174 shares in the company, valued at approximately $5,161,284.36. This trade represents a 67.46% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Lloyd Carney sold 650 shares of the stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $309.62, for a total value of $201,253.00. Following the sale, the director owned 2,679 shares in the company, valued at approximately $829,471.98. This represents a 19.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 42,744 shares of company stock worth $14,356,010 in the last 90 days. Insiders own 0.12% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have weighed in on V. Macquarie Infrastructure reiterated an "outperform" rating and set a $410.00 target price on shares of Visa in a report on Friday, January 30th. UBS Group upped their price target on Visa from $390.00 to $410.00 and gave the stock a "buy" rating in a research note on Wednesday, April 29th. Piper Sandler set a $160.00 price target on Visa in a research note on Wednesday, January 28th. Loop Capital assumed coverage on Visa in a research note on Tuesday, March 31st. They issued a "buy" rating and a $387.00 price target on the stock. Finally, Oppenheimer restated an "outperform" rating and issued a $403.00 price target (up from $391.00) on shares of Visa in a research note on Wednesday, April 29th. Six analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average target price of $386.70.

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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