Redwood Investment Management LLC Decreases Stock Holdings in Visa Inc. $V

Key Points

• Redwood Investment Management LLC has drastically reduced its holdings in Visa Inc. by 47.7%, now owning approximately 3,995 shares worth $1.4 million.
• Visa reported a quarterly earnings per share of $2.98, exceeding estimates, and saw revenue increase to $10.17 billion, representing a 14.3% year-over-year growth.
• The company declared a quarterly dividend of $0.59 per share, with an annualized dividend yield of 0.7% and a dividend payout ratio of 23.05%.

Redwood Investment Management LLC trimmed its position in Visa Inc. (NYSE:V - Free Report) by 47.7% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 3,995 shares of the credit-card processor's stock after selling 3,641 shares during the period. Redwood Investment Management LLC's holdings in Visa were worth $1,400,000 at the end of the most recent reporting period.

Several other large investors have also recently bought and sold shares of the company. Vanguard Group Inc. boosted its holdings in Visa by 1.1% in the 1st quarter. Vanguard Group Inc. now owns 161,082,431 shares of the credit-card processor's stock valued at $56,452,949,000 after purchasing an additional 1,677,088 shares during the period. Northern Trust Corp boosted its holdings in Visa by 4.0% in the 1st quarter. Northern Trust Corp now owns 18,987,013 shares of the credit-card processor's stock valued at $6,654,189,000 after purchasing an additional 726,299 shares during the period. GAMMA Investing LLC boosted its holdings in Visa by 38,416.3% in the 1st quarter. GAMMA Investing LLC now owns 14,761,375 shares of the credit-card processor's stock valued at $5,173,271,000 after purchasing an additional 14,723,050 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in Visa by 14.9% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 13,321,754 shares of the credit-card processor's stock valued at $4,210,207,000 after purchasing an additional 1,723,785 shares during the period. Finally, Ameriprise Financial Inc. boosted its holdings in Visa by 1.3% in the 4th quarter. Ameriprise Financial Inc. now owns 12,796,415 shares of the credit-card processor's stock valued at $4,045,149,000 after purchasing an additional 164,008 shares during the period. 82.15% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several brokerages have commented on V. Mizuho raised shares of Visa from a "neutral" rating to an "outperform" rating and raised their price target for the company from $359.00 to $425.00 in a report on Thursday, June 5th. Wall Street Zen raised shares of Visa from a "hold" rating to a "buy" rating in a report on Monday, May 12th. Citigroup started coverage on shares of Visa in a report on Monday, June 2nd. They set a "buy" rating for the company. Barclays reaffirmed an "overweight" rating and set a $408.00 price objective (up from $396.00) on shares of Visa in a report on Thursday, July 31st. Finally, UBS Group reaffirmed a "buy" rating and set a $415.00 price objective (up from $405.00) on shares of Visa in a report on Wednesday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $380.84.

Insider Buying and Selling

In related news, General Counsel Julie B. Rottenberg sold 2,027 shares of the business's stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $344.02, for a total transaction of $697,328.54. Following the sale, the general counsel owned 11,925 shares of the company's stock, valued at $4,102,438.50. The trade was a 14.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Ryan Mcinerney sold 8,630 shares of the business's stock in a transaction dated Tuesday, July 1st. The stock was sold at an average price of $353.82, for a total transaction of $3,053,466.60. Following the sale, the chief executive officer directly owned 537 shares in the company, valued at $190,001.34. The trade was a 94.14% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 77,127 shares of company stock valued at $28,340,553 over the last quarter. Corporate insiders own 0.13% of the company's stock.

Visa Trading Down 0.1%

Shares of V stock traded down $0.25 during mid-day trading on Thursday, reaching $350.10. The stock had a trading volume of 4,987,056 shares, compared to its average volume of 6,288,815. The stock's 50-day moving average price is $348.07 and its two-hundred day moving average price is $347.44. Visa Inc. has a 52-week low of $268.23 and a 52-week high of $375.51. The firm has a market capitalization of $641.65 billion, a PE ratio of 34.19, a price-to-earnings-growth ratio of 2.33 and a beta of 0.94. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 0.52.

Visa (NYSE:V - Get Free Report) last announced its quarterly earnings results on Tuesday, July 29th. The credit-card processor reported $2.98 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.85 by $0.13. Visa had a net margin of 52.16% and a return on equity of 58.93%. The company had revenue of $10.17 billion for the quarter, compared to analysts' expectations of $9.82 billion. During the same quarter in the previous year, the company earned $2.42 earnings per share. Visa's quarterly revenue was up 14.3% on a year-over-year basis. Equities analysts expect that Visa Inc. will post 11.3 earnings per share for the current fiscal year.

Visa Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 2nd. Investors of record on Tuesday, August 12th will be paid a dividend of $0.59 per share. The ex-dividend date of this dividend is Tuesday, August 12th. This represents a $2.36 annualized dividend and a yield of 0.7%. Visa's payout ratio is presently 23.05%.

Visa Profile

Visa Inc operates as a payment technology company in the United States and internationally. The company operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. It also offers credit, debit, and prepaid card products; tap to pay, tokenization, and click to pay services; Visa Direct, a solution that facilitates the delivery of funds to eligible cards, deposit accounts, and digital wallets; Visa B2B Connect, a multilateral business-to-business cross-border payments network; Visa Cross-Border Solution, a cross-border consumer payments solution; and Visa DPS that provides a range of value-added services, including fraud mitigation, dispute management, data analytics, campaign management, a suite of digital solutions, and contact center services.