Visa Inc. $V Shares Purchased by Cibc World Market Inc.

Key Points

• Cibc World Market Inc. increased its Visa stake by 1.9% in the fourth quarter, ending with 900,723 shares valued at about $315.9 million. Other large institutions also added to positions, and hedge funds and institutions now own 82.15% of Visa.
• Visa reported strong quarterly results, with EPS of $3.31 beating estimates and revenue of $11.23 billion topping expectations. Revenue rose 17.1% year over year, and analysts still expect full-year EPS of 13.09.
• The company also declared a quarterly dividend of $0.67 and authorized a $20 billion share buyback, signaling confidence in its cash generation and valuation. Analysts broadly remain positive, with a consensus rating of “Buy” and a price target of $389.33.

Cibc World Market Inc. boosted its stake in Visa Inc. (NYSE:V - Free Report) by 1.9% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 900,723 shares of the credit-card processor's stock after buying an additional 16,434 shares during the quarter. Cibc World Market Inc.'s holdings in Visa were worth $315,893,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of V. Norges Bank purchased a new position in Visa in the 4th quarter valued at about $5,877,738,000. Corient Private Wealth LLC lifted its stake in Visa by 110.4% in the 2nd quarter. Corient Private Wealth LLC now owns 3,954,937 shares of the credit-card processor's stock valued at $1,396,930,000 after buying an additional 2,075,289 shares in the last quarter. Holocene Advisors LP lifted its stake in Visa by 286.4% in the 3rd quarter. Holocene Advisors LP now owns 2,526,026 shares of the credit-card processor's stock valued at $862,335,000 after buying an additional 1,872,362 shares in the last quarter. SG Americas Securities LLC lifted its stake in Visa by 121.7% in the 4th quarter. SG Americas Securities LLC now owns 3,022,411 shares of the credit-card processor's stock valued at $1,059,990,000 after buying an additional 1,658,954 shares in the last quarter. Finally, Danske Bank A S purchased a new position in Visa in the 3rd quarter valued at about $565,684,000. 82.15% of the stock is owned by hedge funds and other institutional investors.

Visa Stock Performance

Visa stock opened at $313.90 on Thursday. The firm has a 50 day simple moving average of $315.83 and a 200-day simple moving average of $324.56. 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. The stock has a market cap of $563.07 billion, a price-to-earnings ratio of 27.34, a price-to-earnings-growth ratio of 1.70 and a beta of 0.77.

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, beating the consensus estimate of $3.10 by $0.21. Visa had a net margin of 51.68% and a return on equity of 65.00%. The business had revenue of $11.23 billion during the quarter, compared to analysts' expectations of $10.75 billion. During the same quarter in the prior year, the company posted $2.76 EPS. The business's revenue for the quarter was up 17.1% on a year-over-year basis. On average, analysts expect that Visa Inc. will post 13.09 EPS for the current year.

Visa Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 1st. Stockholders of record on Tuesday, May 12th were paid a $0.67 dividend. The ex-dividend date of this dividend was Tuesday, May 12th. This represents a $2.68 annualized dividend and a dividend yield of 0.9%. Visa's dividend payout ratio is 23.34%.

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

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. Weiss Ratings lowered shares of Visa from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, April 16th. Loop Capital assumed coverage on shares of Visa in a research note on Tuesday, March 31st. They issued a "buy" rating and a $387.00 price target on the stock. Morgan Stanley reaffirmed an "overweight" rating and issued a $415.00 price target on shares of Visa in a research note on Wednesday, April 29th. Citigroup decreased their price target 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. Finally, Cantor Fitzgerald reiterated an "overweight" rating and issued a $400.00 price objective on shares of Visa in a report on Wednesday, April 29th. Six analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus price target of $389.33.

More Visa News

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Visa was named as a backer of a reportedly soon-to-launch stablecoin platform with Mastercard and Stripe, which could support faster and cheaper cross-border settlement and show Visa is helping build the next generation of payment rails. Report: Payments Giants Visa, Mastercard, and Stripe Back Stablecoin Platform for Faster Payments
• Positive Sentiment: Visa’s broader product push in commercial payments is also a tailwind, with recent expansion of its Commercial Solutions Hub and AI-powered receivables tools aimed at improving virtual card adoption, reconciliation, and payment efficiency. Visa (V) Announces Expansion of the Visa Commercial Solutions Hub
• Neutral Sentiment: Visa’s network is being used in new gold-backed consumer cards from Tether and Fasset, underscoring continued demand for Visa’s global acceptance infrastructure, though the direct financial impact is unclear. Tether Backs $1M in Gold Rewards as First Gold-Backed Visa Card Goes Live
• Neutral Sentiment: Visa was also mentioned in reports about companies exiting Cuba amid expanded U.S. sanctions, which is more of a geopolitical compliance issue than a meaningful earnings driver. Visa, Mastercard Join Exodus From Cuba on Expanded US Sanctions
• Negative Sentiment: Investors are focusing on the risk that stablecoin platforms could intensify competition in payments and shift some transaction economics away from traditional card networks like Visa, helping explain the stock’s weakness today. Mastercard and Visa Back Stealth Stablecoin Platform

Insider Activity

In other 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 sale, the chief financial officer owned 9,872 shares of the company's stock, valued at $3,206,524.32. This represents a 51.87% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Lloyd Carney sold 650 shares of the stock in a transaction that occurred on Wednesday, March 11th. The shares were 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 trade represents a 19.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 42,744 shares of company stock valued at $14,356,010 in the last 90 days. Company insiders own 0.12% of the company's stock.

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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