Visa Inc. $V Stock: Convergence Financial LLC Cuts Position

Key Points

• Convergence Financial LLC cut its Visa position by 48.6% in the third quarter, selling 3,516 shares and retaining 3,715 shares valued at approximately $1.34 million. Institutional investors collectively own 82.15% of Visa.
• Visa reported stronger-than-expected quarterly results, with earnings of $3.48 per share and revenue of $12.14 billion, up 13.2% year over year. The company also raised its quarterly dividend from $0.67 to $0.78 per share.
• Analyst sentiment remains positive, with Visa holding a consensus “Buy” rating and an average price target of $437.42, although its premium valuation, higher expenses and a potential £5 billion U.K. interchange-fee lawsuit present risks.

Convergence Financial LLC lowered its position in shares of Visa Inc. (NYSE:V - Free Report) by 48.6% in the third quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 3,715 shares of the credit-card processor's stock after selling 3,516 shares during the quarter. Convergence Financial LLC's holdings in Visa were worth $1,335,000 as of its most recent filing with the SEC.

Several other hedge funds also recently made changes to their positions in V. Sigma Investment Counselors Inc. grew its holdings in Visa by 11.7% during the third quarter. Sigma Investment Counselors Inc. now owns 18,295 shares of the credit-card processor's stock worth $6,574,000 after acquiring an additional 1,917 shares during the period. Victory Financial Group LLC raised its position in Visa by 37.7% in the third quarter. Victory Financial Group LLC now owns 6,072 shares of the credit-card processor's stock worth $2,182,000 after acquiring an additional 1,661 shares in the last quarter. Guerra Pan Advisors LLC lifted its holdings in Visa by 1.8% in the third quarter. Guerra Pan Advisors LLC now owns 5,791 shares of the credit-card processor's stock valued at $2,081,000 after acquiring an additional 102 shares during the period. Great Lakes Retirement Inc. lifted its holdings in Visa by 3.8% in the third quarter. Great Lakes Retirement Inc. now owns 16,783 shares of the credit-card processor's stock valued at $6,031,000 after acquiring an additional 618 shares during the period. Finally, Generali Asset Management SPA SGR boosted its position in shares of Visa by 4.3% during the 3rd quarter. Generali Asset Management SPA SGR now owns 153,455 shares of the credit-card processor's stock worth $55,141,000 after purchasing an additional 6,371 shares in the last quarter. Institutional investors and hedge funds own 82.15% of the company's stock.

Visa Stock Performance

NYSE V opened at $400.79 on Thursday. The business has a 50 day moving average price of $379.47 and a 200 day moving average price of $341.60. The company has a market capitalization of $715.18 billion, a P/E ratio of 34.08, a PEG ratio of 1.92 and a beta of 0.77. Visa Inc. has a 1-year low of $293.89 and a 1-year high of $414.60. The company has a debt-to-equity ratio of 0.60, a current ratio of 0.99 and a quick ratio of 0.99.

Visa (NYSE:V - Get Free Report) last posted its earnings results on Tuesday, October 27th. The credit-card processor reported $3.48 EPS for the quarter, topping analysts' consensus estimates of $3.44 by $0.04. The company had revenue of $12.14 billion for the quarter, compared to the consensus estimate of $12.09 billion. Visa had a return on equity of 67.68% and a net margin of 50.78%. Visa's quarterly revenue was up 13.2% compared to the same quarter last year. During the same period in the previous year, the business earned $2.98 earnings per share. Sell-side analysts expect that Visa Inc. will post 13.22 EPS for the current fiscal year.

Visa Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Tuesday, November 10th will be paid a dividend of $0.78 per share. This is a boost from Visa's previous quarterly dividend of $0.67. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $3.12 annualized dividend and a dividend yield of 0.8%. Visa's dividend payout ratio is presently 22.79%.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on V shares. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $466.00 price target on shares of Visa in a research note on Wednesday. Rothschild & Co Redburn raised their price objective on shares of Visa from $430.00 to $444.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. Barclays raised their price objective on shares of Visa from $420.00 to $440.00 and gave the company an "overweight" rating in a research note on Wednesday. JPMorgan Chase & Co. boosted their price objective on shares of Visa from $450.00 to $455.00 and gave the stock an "overweight" rating in a report on Wednesday. Finally, KeyCorp upped their target price on shares of Visa from $415.00 to $425.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 29th. Two research analysts have rated the stock with a Strong Buy rating and thirty-five have issued a Buy rating to the company. Based on data from MarketBeat.com, Visa currently has a consensus rating of "Buy" and an average target price of $437.42.

Visa News Summary

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Visa reported adjusted earnings of $3.48 per share, exceeding the $3.43 consensus estimate, while revenue rose 13.2% year over year to $12.14 billion, ahead of expectations. Growth was supported by higher payment volumes, cross-border activity and processed transactions. Visa Q4 Earnings Beat Estimates on Strong Payment Volumes
• Positive Sentiment: Management highlighted resilient consumer spending, international payment growth, value-added services and stablecoin initiatives, while targeting double-digit revenue growth for fiscal 2027. Commentary that the U.S. consumer is holding up supports Visa’s near-term transaction outlook. Visa Q4 Earnings Call Highlights FY27 Outlook and Growth Priorities
• Positive Sentiment: Visa raised its quarterly dividend to $0.78 per share from $0.67, a 16.4% increase. The higher payout signals confidence in cash generation and strengthens the shareholder-return story, despite the stock’s relatively low 0.8% dividend yield.
• Positive Sentiment: JPMorgan raised its price target to $455, Barclays to $440 and Oppenheimer to $440, while RBC reaffirmed an “outperform” rating with a $466 target. The revisions reflect confidence in Visa’s earnings momentum and long-term growth prospects.
• Neutral Sentiment: Analysts cited Visa’s results as a favorable read-through for Mastercard, particularly on consumer spending and international transactions. This reinforces the health of the payments industry but offers only indirect benefit to Visa. Analyst Signals Favorable Earnings Setup for Mastercard After Visa’s Results
• Negative Sentiment: Higher client incentives and expenses, along with slightly slower payment-volume growth, could temper the earnings reaction. Visa’s premium valuation also leaves less room for execution disappointments.
• Negative Sentiment: Visa faces a collective lawsuit in the United Kingdom seeking about £5 billion on behalf of roughly one million businesses. The claim alleges excessive interchange fees and competition-law violations, creating a potentially significant legal and regulatory overhang. Visa Is Defending a UK Card Fee Lawsuit

Insider Buying and Selling at Visa

In related news, General Counsel Julie Rottenberg sold 2,028 shares of the business's stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $381.35, for a total value of $773,377.80. Following the sale, the general counsel directly owned 18,404 shares in the company, valued at $7,018,365.40. The trade was a 9.93% decrease in their position. The transaction was disclosed in a filing 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, CEO Ryan Mcinerney sold 5,875 shares of the business's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $367.87, for a total transaction of $2,161,236.25. Following the completion of the sale, the chief executive officer owned 15,174 shares in the company, valued at $5,582,059.38. This represents a 27.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 21,520 shares of company stock valued at $7,960,757 in the last ninety days. Corporate insiders own 0.12% of the company's stock.

Visa Company Profile

Visa Inc NYSE: V is a global payments technology company that facilitates electronic payments between consumers, businesses, financial institutions and governments. Through its VisaNet network, the company authorizes, clears and settles transactions made with Visa-branded credit, debit and prepaid cards, while generally not issuing cards, extending credit or setting cardholder account terms.

Visa provides payment products and services for consumer, commercial and government payments, as well as digital commerce and money movement.

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