Summitry LLC Purchases 5,622 Shares of Visa Inc. $V

Key Points

• Summitry LLC increased its Visa stake by 3.0% in the fourth quarter, buying 5,622 more shares and bringing its total holdings to 194,792 shares valued at about $68.3 million.
• Visa posted strong quarterly results, reporting $3.31 EPS and $11.23 billion in revenue, both above analyst expectations, with revenue rising 17.1% year over year.
• The company announced shareholder returns through a new $20 billion buyback authorization and a quarterly dividend of $0.67 per share, while analysts maintained a generally bullish outlook with a consensus “Buy” rating.

Summitry LLC increased its position in shares of Visa Inc. (NYSE:V - Free Report) by 3.0% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 194,792 shares of the credit-card processor's stock after buying an additional 5,622 shares during the period. Visa accounts for 2.8% of Summitry LLC's holdings, making the stock its 13th biggest holding. Summitry LLC's holdings in Visa were worth $68,316,000 at the end of the most recent reporting period.

Other hedge funds have also bought and sold shares of the company. Clayton Financial Group LLC raised its stake in Visa by 446.2% during the fourth quarter. Clayton Financial Group LLC now owns 71 shares of the credit-card processor's stock worth $25,000 after buying an additional 58 shares during the last quarter. PayPay Securities Corp raised its stake in 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 buying an additional 38 shares during the last quarter. Cresta Advisors Ltd. bought a new position in Visa during the fourth quarter worth $26,000. Parvin Asset Management LLC raised its stake in Visa by 200.0% during the third quarter. Parvin Asset Management LLC now owns 75 shares of the credit-card processor's stock worth $26,000 after buying an additional 50 shares during the last quarter. Finally, Dorato Capital Management bought a new position in Visa during the fourth quarter worth $30,000. Institutional investors own 82.15% of the company's stock.

Visa Stock Up 0.1%

Shares of NYSE V opened at $329.21 on Tuesday. The stock 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. The company has a 50-day moving average price of $313.23 and a 200-day moving average price of $325.27. Visa Inc. has a 1 year low of $293.89 and a 1 year high of $375.51. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.09 and a quick ratio of 1.09.

Visa (NYSE:V - Get Free Report) last issued 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 firm 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 business's revenue was up 17.1% on a year-over-year basis. During the same period last year, the company earned $2.76 earnings per share. On average, equities research analysts forecast that Visa Inc. will post 13.09 EPS for the current fiscal year.

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

Visa Announces Dividend

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

Insider Activity

In other news, CEO Ryan Mcinerney sold 31,455 shares of Visa stock in a transaction dated Wednesday, April 29th. The shares were 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 directly owned 15,174 shares in the company, valued at $5,161,284.36. This trade represents a 67.46% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Lloyd Carney sold 650 shares of Visa stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $309.62, for a total transaction of $201,253.00. Following the transaction, the director owned 2,679 shares of the company's stock, valued at $829,471.98. This represents a 19.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 42,744 shares of company stock worth $14,356,010 over the last three months. 0.12% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of research firms have commented on V. Oppenheimer restated an "outperform" rating and issued a $403.00 price target (up from $391.00) on shares of Visa in a report on Wednesday, April 29th. Bank of America began coverage on shares of Visa in a report on Thursday, March 5th. They issued a "buy" rating and a $410.00 price target for the company. Weiss Ratings cut shares of Visa from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, April 16th. TD Cowen restated a "buy" rating on shares of Visa in a report on Friday, January 30th. Finally, Citigroup reduced their price target on shares of Visa from $450.00 to $400.00 and set a "buy" rating for the company in a report on Tuesday, April 14th. Six analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Visa presently has a consensus rating of "Buy" and an average price target of $387.67.

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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