Visa Inc. $V is Tandem Investment Advisors Inc.'s Largest Position

Key Points

• Tandem Investment Advisors trimmed its Visa stake by 4.3% in the fourth quarter, but Visa remained its largest holding at about 5.4% of the portfolio, worth roughly $146.3 million.
• Visa reported strong quarterly results, with EPS of $3.31 topping estimates and revenue of $11.23 billion beating expectations; revenue also rose 17.1% year over year.
• The company announced a $20 billion share repurchase program and a quarterly dividend of $0.67 per share, while analysts broadly remain positive with a consensus rating of Buy and a target price of $387.67.

Tandem Investment Advisors Inc. lowered its position in Visa Inc. (NYSE:V - Free Report) by 4.3% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 417,098 shares of the credit-card processor's stock after selling 18,803 shares during the period. Visa makes up approximately 5.4% of Tandem Investment Advisors Inc.'s investment portfolio, making the stock its biggest holding. Tandem Investment Advisors Inc.'s holdings in Visa were worth $146,280,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in the stock. Allstate Corp raised its holdings in shares of Visa by 106.3% in the fourth quarter. Allstate Corp now owns 128,535 shares of the credit-card processor's stock valued at $45,079,000 after acquiring an additional 66,228 shares in the last quarter. MSH Capital Advisors LLC grew its holdings in Visa by 32.4% during the 4th quarter. MSH Capital Advisors LLC now owns 7,916 shares of the credit-card processor's stock worth $2,776,000 after acquiring an additional 1,936 shares in the last quarter. Summitry LLC increased its position in Visa by 3.0% during the 4th quarter. Summitry LLC now owns 194,792 shares of the credit-card processor's stock valued at $68,316,000 after purchasing an additional 5,622 shares during the period. Annis Gardner Whiting Capital Advisors LLC raised its holdings in shares of Visa by 2.3% in the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 8,396 shares of the credit-card processor's stock valued at $2,945,000 after purchasing an additional 192 shares in the last quarter. Finally, Fisher Asset Management LLC raised its holdings in shares of Visa by 1.7% in the 4th quarter. Fisher Asset Management LLC now owns 7,485,132 shares of the credit-card processor's stock valued at $2,625,111,000 after purchasing an additional 125,909 shares in the last quarter. 82.15% of the stock is currently owned by institutional investors.

Visa Stock Performance

Shares of V opened at $329.21 on Tuesday. The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 0.64. The firm has a market cap of $590.53 billion, a PE ratio of 28.68, a P/E/G ratio of 1.76 and a beta of 0.78. Visa Inc. has a 12 month low of $293.89 and a 12 month high of $375.51. The stock has a fifty day moving average price of $313.23 and a 200-day moving average price of $325.27.

Visa (NYSE:V - Get Free Report) last announced its earnings results on Tuesday, April 28th. The credit-card processor reported $3.31 earnings per share (EPS) for the quarter, beating the consensus estimate 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 for the quarter, compared to analyst estimates of $10.75 billion. During the same period in the prior year, the company posted $2.76 EPS. The firm's quarterly revenue was up 17.1% compared to the same quarter last year. Equities research analysts predict that Visa Inc. will post 13.09 earnings per share for the current fiscal year.

Visa declared that its Board of Directors has authorized a share repurchase program 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 programs are typically an indication that the company's board believes its stock is undervalued.

Visa Dividend Announcement

The business 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. 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 23.34%.

Insider Activity at Visa

In related news, CFO Chris Suh sold 10,639 shares of the stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $324.81, for a total value of $3,455,653.59. Following the completion of the transaction, the chief financial officer directly 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 sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Lloyd Carney sold 650 shares of the business's 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 sale, the director directly owned 2,679 shares in the company, valued at approximately $829,471.98. This represents a 19.53% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 42,744 shares of company stock valued at $14,356,010 in the last three months. 0.12% of the stock is owned by insiders.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on V. TD Cowen reiterated a "buy" rating on shares of Visa in a research note on Friday, January 30th. Weiss Ratings downgraded shares of Visa from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, April 16th. Morgan Stanley reaffirmed an "overweight" rating and set a $415.00 target price on shares of Visa in a research report on Wednesday, April 29th. Evercore set a $350.00 price target on Visa in a report on Wednesday, April 29th. Finally, Bank of America began coverage on Visa in a research note on Thursday, March 5th. They set a "buy" rating and a $410.00 price objective for the company. Six research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, Visa presently has an average rating of "Buy" and a consensus target price 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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