Visa Inc. $V Shares Purchased by Capital Group Investment Management PTE. LTD.

Key Points

• Capital Group Investment Management PTE. LTD. increased its Visa stake by 18.4% in the fourth quarter, adding 3,968 shares and bringing its total holding to 25,575 shares valued at about $8.97 million.
• Visa posted strong quarterly results, with EPS of $3.31 and revenue of $11.23 billion, both above analyst estimates. Revenue rose 17.1% year over year, and the company also announced a $20 billion share buyback.
• Analysts remain broadly bullish on Visa, with a consensus Buy rating and an average price target of $387.78. However, the article also notes recent insider selling, including a significant stock sale by CEO Ryan McInerney.

Capital Group Investment Management PTE. LTD. increased its holdings in shares of Visa Inc. (NYSE:V - Free Report) by 18.4% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 25,575 shares of the credit-card processor's stock after acquiring an additional 3,968 shares during the quarter. Visa comprises 1.5% of Capital Group Investment Management PTE. LTD.'s investment portfolio, making the stock its 14th biggest position. Capital Group Investment Management PTE. LTD.'s holdings in Visa were worth $8,969,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the business. Beacon Capital Management LLC boosted its position in Visa by 2.0% during the third quarter. Beacon Capital Management LLC now owns 1,541 shares of the credit-card processor's stock worth $526,000 after acquiring an additional 30 shares during the last quarter. Chapman Financial Group LLC raised its stake in Visa by 0.9% during the third quarter. Chapman Financial Group LLC now owns 3,211 shares of the credit-card processor's stock worth $1,096,000 after purchasing an additional 30 shares during the period. Ransom Advisory Ltd raised its stake in Visa by 0.3% during the fourth quarter. Ransom Advisory Ltd now owns 9,447 shares of the credit-card processor's stock worth $3,313,000 after purchasing an additional 30 shares during the period. TSA Wealth Managment LLC raised its stake in Visa by 4.9% during the third quarter. TSA Wealth Managment LLC now owns 659 shares of the credit-card processor's stock worth $225,000 after purchasing an additional 31 shares during the period. Finally, Bank OZK raised its stake in Visa by 3.7% during the third quarter. Bank OZK now owns 858 shares of the credit-card processor's stock worth $293,000 after purchasing an additional 31 shares during the period. 82.15% of the stock is currently owned by institutional investors and hedge funds.

Visa Trading Up 1.2%

Shares of NYSE:V opened at $324.03 on Friday. Visa Inc. has a 52 week low of $293.89 and a 52 week high of $375.51. The company's 50 day moving average is $316.53 and its two-hundred day moving average is $324.49. 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 company has a market cap of $581.24 billion, a PE ratio of 28.23, a P/E/G ratio of 1.73 and a beta of 0.77.

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, 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 quarterly revenue was up 17.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.76 EPS. Equities 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 initiated a share buyback plan on Tuesday, April 28th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the credit-card processor to reacquire up to 3.6% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's leadership believes its stock is undervalued.

Visa Dividend Announcement

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

Key Headlines Impacting Visa

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Visa is testing private stablecoin settlement with Brale on the Canton Network, a proof of concept aimed at enabling institutional payments with more privacy and efficiency. Investors may see this as evidence that Visa is expanding its payments infrastructure into a potentially high-growth use case. Article: Visa tests private stablecoin settlement with Brale, Canton
• Positive Sentiment: Visa’s new partnership with Brale reinforces its stablecoin strategy and suggests the company is actively building tools for institutional blockchain settlement, which could strengthen long-term growth prospects. Article: How Visa Advances Stablecoin Payment Vision With Brale Partnership?
• Positive Sentiment: Reports that Visa, Mastercard, Stripe and others are collaborating on a new stablecoin platform suggest major payments players are validating the opportunity, which may help Visa if the initiative gains merchant traction. Article: Visa Mastercard Stablecoin Push Tests Circle USDC And Rich Valuation
• Neutral Sentiment: Visa also announced leadership appointments in Asia Pacific to support value-added services and Southeast Asia growth, a positive operating update but likely not a major near-term stock driver. Article: Visa Announces Asia Pacific Leadership Appointments to Scale Value-Added Services and Southeast Asia Growth
• Negative Sentiment: News that Visa and Mastercard payments are being halted in Cuba adds a small regional headwind, though the revenue impact is likely limited compared with Visa’s overall global business. Article: Visa, Mastercard payments to be halted in Cuba amid new US sanctions

Insider Buying and Selling

In other news, CEO Ryan Mcinerney sold 31,455 shares of the firm's stock in a transaction on Wednesday, April 29th. The shares were sold at an average price of $340.14, for a total value of $10,699,103.70. Following the completion of the sale, the chief executive officer 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, 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 firm's stock in a transaction 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 owned 2,679 shares of the company's stock, valued at $829,471.98. This trade represents a 19.53% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 42,744 shares of company stock worth $14,356,010 in the last 90 days. Company insiders own 0.12% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on V shares. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $450.00 target price on shares of Visa in a research note on Tuesday. Citigroup reduced their target price on shares of Visa from $450.00 to $400.00 and set a "buy" rating on the stock in a research note on Tuesday, April 14th. Truist Financial set a $371.00 target price on shares of Visa and gave the stock a "buy" rating in a research note on Tuesday, May 12th. Loop Capital started coverage on shares of Visa in a research note on Tuesday, March 31st. They set a "buy" rating and a $387.00 target price on the stock. Finally, Weiss Ratings downgraded shares of Visa from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, April 16th. Six research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and two have given 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 $387.78.

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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