Visa Inc. $V Stock Bought by Retirement Systems of Alabama

Key Points

• Retirement Systems of Alabama increased its Visa stake by 1.2% in the third quarter, adding 8,696 shares to bring its holdings to 736,352 shares, valued at about $264.6 million.
• Visa beat quarterly earnings estimates, reporting $3.48 per share and $12.14 billion in revenue; revenue grew 13.2% year over year. The company also raised its quarterly dividend from $0.67 to $0.78 per share.
• Analysts remain broadly positive: Visa has an average “Buy” rating and a $440.82 average price target, according to MarketBeat.

Retirement Systems of Alabama increased its position in Visa Inc. (NYSE:V - Free Report) by 1.2% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 736,352 shares of the credit-card processor's stock after buying an additional 8,696 shares during the period. Visa accounts for approximately 0.8% of Retirement Systems of Alabama's investment portfolio, making the stock its 23rd biggest holding. Retirement Systems of Alabama's holdings in Visa were worth $264,593,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Beacon Capital Management LLC boosted its holdings in Visa by 2.0% in the third quarter. Beacon Capital Management LLC now owns 1,283 shares of the credit-card processor's stock worth $461,000 after acquiring an additional 25 shares in the last quarter. Argyle Capital Partners LLC grew its stake in Visa by 0.7% in the third quarter. Argyle Capital Partners LLC now owns 3,912 shares of the credit-card processor's stock valued at $1,406,000 after acquiring an additional 27 shares during the period. Verus Financial Partners Inc. grew its stake in Visa by 3.7% in the third quarter. Verus Financial Partners Inc. now owns 752 shares of the credit-card processor's stock valued at $270,000 after acquiring an additional 27 shares during the period. Concorde Asset Management LLC increased its holdings in shares of Visa by 4.0% during the second quarter. Concorde Asset Management LLC now owns 728 shares of the credit-card processor's stock valued at $250,000 after acquiring an additional 28 shares in the last quarter. Finally, Ellis Investment Partners LLC increased its holdings in shares of Visa by 2.1% during the third quarter. Ellis Investment Partners LLC now owns 1,363 shares of the credit-card processor's stock valued at $490,000 after acquiring an additional 28 shares in the last quarter. 82.15% of the stock is owned by institutional investors.

Visa Trading Down 0.0%

Shares of V stock opened at $422.46 on Tuesday. Visa Inc. has a 52-week low of $293.89 and a 52-week high of $442.23. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.99 and a current ratio of 0.97. The company has a 50-day simple moving average of $386.67 and a two-hundred day simple moving average of $345.18. The company has a market capitalization of $753.84 billion, a price-to-earnings ratio of 34.26, a PEG ratio of 1.86 and a beta of 0.80.

Visa (NYSE:V - Get Free Report) last released its quarterly earnings data on Tuesday, October 27th. The credit-card processor reported $3.48 earnings per share for the quarter, beating analysts' consensus estimates of $3.44 by $0.04. Visa had a net margin of 51.20% and a return on equity of 70.50%. The business had revenue of $12.14 billion during the quarter, compared to analyst estimates of $12.09 billion. During the same period in the previous year, the business earned $2.98 EPS. Visa's revenue was up 13.2% compared to the same quarter last year. Research analysts anticipate that Visa Inc. will post 15.02 EPS for the current fiscal year.

Visa Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Tuesday, November 10th will be issued a dividend of $0.78 per share. The ex-dividend date is Tuesday, November 10th. This represents a $3.12 annualized dividend and a yield of 0.7%. This is a boost from Visa's previous quarterly dividend of $0.67. Visa's dividend payout ratio (DPR) is currently 21.74%.

Insider Activity

In other Visa news, General Counsel Julie B. Rottenberg sold 1,867 shares of Visa stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $368.34, for a total value of $687,690.78. Following the transaction, the general counsel directly owned 18,404 shares of the company's stock, valued at $6,778,929.36. The trade was a 9.21% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ryan Mcinerney sold 5,875 shares of the business's stock in a transaction that occurred on Monday, November 2nd. The shares were sold at an average price of $416.22, for a total value of $2,445,292.50. Following the completion of the sale, the chief executive officer owned 15,174 shares of the company's stock, valued at $6,315,722.28. The trade was a 27.91% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 27,395 shares of company stock valued at $10,406,050 over the last 90 days. 0.12% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the company. TD Cowen reaffirmed a "buy" rating and set a $450.00 target price (up from $420.00) on shares of Visa in a research report on Wednesday, October 28th. Evercore set a $405.00 price target on shares of Visa in a research report on Wednesday, October 28th. Clear Str upgraded shares of Visa to a "strong-buy" rating in a research note on Thursday, July 16th. Weiss Ratings downgraded shares of Visa from a "buy (b+)" rating to a "buy (b)" rating in a report on Wednesday, October 28th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $430.00 price objective on shares of Visa in a report on Wednesday, July 29th. Two equities research analysts have rated the stock with a Strong Buy rating and thirty-five have assigned a Buy rating to the company's stock. According to data from MarketBeat.com, Visa has an average rating of "Buy" and an average price target of $440.82.

Visa Company Profile

Visa Inc operates a global payments network that connects consumers, merchants, financial institutions and governments. Its network supports the authorization, clearing and settlement of electronic payments, including transactions made in person and online.

The company's services include payment processing, fraud prevention, identity and risk management, and money-transfer solutions such as Visa Direct. Visa-branded credit, debit and prepaid cards are issued by participating financial institutions; Visa generally provides the network and related services rather than issuing cards or extending credit directly to consumers.

Visa traces its roots to BankAmericard, a bank card program launched in California in 1958.

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