Visa Inc. $V Stake Lowered by Dock Street Asset Management Inc.

Key Points

• Dock Street Asset Management trimmed its Visa stake by 4.7% in Q1, selling 7,367 shares and leaving it with 148,829 shares worth about $44.98 million. Visa remains one of the fund’s top holdings, making up roughly 4.7% of its portfolio.
• Visa continues to see positive business developments, including the launch of Visa Destinations in 10 major markets and the expansion of Visa Cloud Connect with partners Mintoak and Thredd in Asia Pacific. These moves are aimed at boosting travel-related engagement and faster card issuance for fintechs and banks.
• The company reported strong quarterly results, with earnings and revenue both beating expectations, and it also authorized a $20 billion share buyback and paid a quarterly dividend of $0.67 per share. Analysts remain upbeat, with a consensus rating of Buy and an average price target of $387.78.

Dock Street Asset Management Inc. cut its position in shares of Visa Inc. (NYSE:V - Free Report) by 4.7% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 148,829 shares of the credit-card processor's stock after selling 7,367 shares during the period. Visa makes up about 4.7% of Dock Street Asset Management Inc.'s portfolio, making the stock its 6th biggest holding. Dock Street Asset Management Inc.'s holdings in Visa were worth $44,982,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in shares of Visa by 0.7% during the 4th quarter. Vanguard Group Inc. now owns 160,975,832 shares of the credit-card processor's stock valued at $56,455,834,000 after acquiring an additional 1,054,343 shares during the last quarter. State Street Corp raised its stake in Visa by 0.8% during the fourth quarter. State Street Corp now owns 82,798,151 shares of the credit-card processor's stock valued at $29,038,140,000 after purchasing an additional 626,821 shares in the last quarter. Geode Capital Management LLC raised its stake in Visa by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 44,042,586 shares of the credit-card processor's stock valued at $15,411,395,000 after purchasing an additional 388,996 shares in the last quarter. Price T Rowe Associates Inc. MD raised its stake in Visa by 1.8% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 41,092,294 shares of the credit-card processor's stock valued at $14,411,480,000 after purchasing an additional 716,218 shares in the last quarter. Finally, Capital World Investors lifted its position in Visa by 0.8% during the third quarter. Capital World Investors now owns 24,792,246 shares of the credit-card processor's stock valued at $8,463,484,000 after purchasing an additional 193,288 shares during the last quarter. Hedge funds and other institutional investors own 82.15% of the company's stock.

Key Stories Impacting Visa

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Visa launched Visa Destinations, a global travel platform now live in 10 major markets, designed to engage cardholders earlier in the travel journey and deepen use of Visa’s network through curated experiences and exclusive access. Visa Redefines Its Role in Travel With the Global Launch of Visa Destinations
• Positive Sentiment: Visa expanded Visa Cloud Connect with Mintoak and Thredd in Asia Pacific, which could help fintechs and banks issue cards faster and broaden Visa’s reach in merchant SaaS and cloud-based issuing. Visa (V), Mintoak Partner to Expand Merchant SaaS Offerings Across Asia Pacific
• Positive Sentiment: Analysts are highlighting Visa’s new travel push and international expansion efforts as potential future growth drivers, reinforcing the view that Visa can keep monetizing cross-border spending and travel-related activity. Can Visa's New Travel Play Become Its Next Growth Driver?
• Neutral Sentiment: Several recent write-ups on Visa’s travel and partner initiatives are largely descriptive, but they underscore investor focus on whether these new products can meaningfully add to growth over time. Visa Explores Travel Planning Space With Visa Destinations
• Neutral Sentiment: One opinion piece argued Visa could be vulnerable to payment disruption, but it did not include new fundamental data and appears to be more of a long-term risk discussion than a near-term catalyst. Visa: May Be Next On The Disruption Hit List

Visa Stock Up 1.9%

NYSE V opened at $336.96 on Friday. 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 52 week low of $293.89 and a 52 week high of $359.66. The firm has a market capitalization of $604.43 billion, a price-to-earnings ratio of 29.35, a PEG ratio of 1.77 and a beta of 0.77. The company has a fifty day moving average of $323.36 and a two-hundred day moving average of $324.30.

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 for the quarter, beating the consensus estimate of $3.10 by $0.21. The business 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 business's revenue for the quarter was up 17.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.76 earnings per share. On average, analysts predict that Visa Inc. will post 13.09 earnings per share for the current year.

Visa Announces Dividend

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

Visa announced that its Board of Directors has initiated a share buyback plan on Tuesday, April 28th that authorizes the company to buyback $20.00 billion in shares. This buyback authorization authorizes the credit-card processor to purchase up to 3.6% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. Evercore set a $350.00 price objective on shares of Visa in a research note on Wednesday, April 29th. Oppenheimer restated an "outperform" rating and set a $403.00 target price (up from $391.00) on shares of Visa in a research report on Wednesday, April 29th. Loop Capital began coverage on shares of Visa in a report on Tuesday, March 31st. They issued a "buy" rating and a $387.00 price target for the company. Raymond James Financial reiterated an "outperform" rating and issued a $389.00 price target on shares of Visa in a research report on Wednesday, April 29th. Finally, UBS Group boosted their price objective on Visa from $390.00 to $410.00 and gave the stock a "buy" rating in a research note on Wednesday, April 29th. Six analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Buy" and a consensus target price of $387.78.

Insider Transactions at Visa

In other Visa news, CEO Ryan Mcinerney sold 31,455 shares of the firm's stock in a transaction dated 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 of the company's stock, valued at $5,161,284.36. This trade represents a 67.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Chris Suh sold 10,639 shares of the stock in a transaction that occurred on Tuesday, May 12th. The stock was 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 approximately $3,206,524.32. The trade was a 51.87% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.12% of the company's stock.

About Visa

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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