Visa Inc. $V Shares Sold by Allen Investment Management LLC

Key Points

• Allen Investment Management LLC trimmed its Visa stake by 3.4% in the fourth quarter, selling 40,276 shares and leaving it with 1,129,646 shares valued at about $396.2 million.
• Visa reported strong quarterly results, with earnings of $3.31 per share and revenue of $11.23 billion, both ahead of analyst expectations. Revenue also rose 17.1% year over year.
• The company continues to return cash to shareholders through a $0.67 quarterly dividend and a newly approved $20 billion stock repurchase plan, while analysts maintain a consensus Buy rating with a $386.70 price target.

Allen Investment Management LLC reduced its holdings in Visa Inc. (NYSE:V - Free Report) by 3.4% during the 4th quarter, according to the company in its most recent disclosure with the SEC. The fund owned 1,129,646 shares of the credit-card processor's stock after selling 40,276 shares during the quarter. Visa comprises 4.4% of Allen Investment Management LLC's portfolio, making the stock its 5th biggest holding. Allen Investment Management LLC owned approximately 0.06% of Visa worth $396,178,000 at the end of the most recent quarter.

Several other institutional investors also recently added to or reduced their stakes in V. Crestmont Private Wealth LLC raised its stake in shares of Visa by 3.1% in the 4th quarter. Crestmont Private Wealth LLC now owns 3,033 shares of the credit-card processor's stock valued at $1,064,000 after buying an additional 92 shares in the last quarter. Vantus Wealth LLC acquired a new position in Visa in the fourth quarter valued at about $620,000. Spinnaker Trust increased its stake in shares of Visa by 4.1% in the fourth quarter. Spinnaker Trust now owns 32,564 shares of the credit-card processor's stock valued at $11,421,000 after buying an additional 1,296 shares in the last quarter. Select Asset Management & Trust acquired a new stake in Visa in the 4th quarter valued at about $381,000. Finally, One Capital Management LLC raised its stake in shares of Visa by 3.4% in the fourth quarter. One Capital Management LLC now owns 51,234 shares of the credit-card processor's stock worth $17,968,000 after acquiring an additional 1,685 shares during the last quarter. 82.15% of the stock is owned by institutional investors.

Key Stories Impacting Visa

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Visa’s long-term business model remains strong because it earns a fee on a huge share of global digital transactions, making it a durable “buy and hold forever” candidate for investors focused on secular growth. American Express vs. Visa: 2 Different Ways to Bet on Premium Consumer Spending
• Positive Sentiment: Market commentators say Visa now screens attractively after a year of weaker performance, suggesting the selloff may have reset the valuation on this high-quality payments franchise. Visa at $326, Mastercard at $493: Buy, Sell or Hold?
• Positive Sentiment: Visa’s recent investment in Replit and its work on AI-driven commerce could help position the company for future payment flows beyond traditional card swipes and tap-to-pay transactions. Visa’s Replit Investment Links AI Agents To Future Commerce Growth
• Neutral Sentiment: Several analyst-focused articles and comparisons with Mastercard and American Express are keeping Visa in the spotlight, but they mainly reinforce the debate over whether the stock is a buy, hold, or relative value play rather than pointing to a clear catalyst.
• Negative Sentiment: Investors remain concerned that stablecoin adoption and interchange-related legal pressure could threaten Visa’s long-term economics, contributing to the stock’s recent underperformance versus the broader market. Visa at $326, Mastercard at $493: Buy, Sell or Hold?
• Negative Sentiment: One recent market view argues Visa may trail the equity market going forward, reflecting skepticism that the stock will quickly regain leadership after its recent slump. Visa: Why Trailing The Equity Market Seems The Most Likely Scenario Ahead

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the company. Freedom Capital raised Visa from a "hold" rating to a "strong-buy" rating in a research note on Monday, February 16th. Morgan Stanley reaffirmed an "overweight" rating and set a $415.00 price objective on shares of Visa in a research note on Wednesday, April 29th. Bank of America assumed 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. Evercore set a $350.00 price objective on shares of Visa in a report on Wednesday, April 29th. Finally, Weiss Ratings cut shares of Visa from a "buy (b-)" rating to a "hold (c+)" rating in a report 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 assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Buy" and a consensus price target of $386.70.

Visa Stock Performance

V opened at $322.57 on Tuesday. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 0.64. Visa Inc. has a 12-month low of $293.89 and a 12-month high of $375.51. The business has a 50 day moving average of $315.33 and a 200-day moving average of $324.87. The stock has a market cap of $578.62 billion, a price-to-earnings ratio of 28.10, a PEG ratio of 1.74 and a beta of 0.78.

Visa (NYSE:V - Get Free Report) last announced its quarterly 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. The business had revenue of $11.23 billion during 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 company's quarterly revenue was up 17.1% on a year-over-year basis. During the same quarter last year, the firm posted $2.76 EPS. On average, equities research analysts expect that Visa Inc. will post 13.09 earnings per share for the current year.

Visa Announces Dividend

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

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

Insider Activity at Visa

In other Visa news, CFO Chris Suh sold 10,639 shares of Visa stock in a transaction dated 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 in the company, valued at $3,206,524.32. The trade was a 51.87% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Lloyd Carney sold 650 shares of the company's 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 of the company's stock, valued at approximately $829,471.98. The trade was a 19.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 42,744 shares of company stock worth $14,356,010. Corporate 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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