Visa Inc. $V Stock Position Decreased by BXM Wealth LLC

Key Points

• BXM Wealth LLC sharply cut its Visa stake by 96.3% in the first quarter, leaving it with 1,205 shares worth about $364,000.
• Visa reported better-than-expected quarterly results, with EPS of $3.31 and revenue of $11.23 billion, both ahead of analyst estimates and up strongly year over year.
• The company remains active on shareholder returns and growth initiatives, including a $20 billion buyback authorization, a quarterly dividend of $0.67 per share, and new moves into stablecoins, travel, and small-business payment tools.

BXM Wealth LLC trimmed its position in shares of Visa Inc. (NYSE:V - Free Report) by 96.3% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,205 shares of the credit-card processor's stock after selling 31,794 shares during the quarter. BXM Wealth LLC's holdings in Visa were worth $364,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its position in Visa by 0.7% in the fourth quarter. Vanguard Group Inc. now owns 160,975,832 shares of the credit-card processor's stock worth $56,455,834,000 after acquiring an additional 1,054,343 shares in the last quarter. State Street Corp lifted its stake in shares of Visa by 0.8% in the 4th 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 during the last quarter. Geode Capital Management LLC boosted its holdings in Visa by 0.9% in the fourth quarter. Geode Capital Management LLC now owns 44,042,586 shares of the credit-card processor's stock worth $15,411,395,000 after purchasing an additional 388,996 shares in the last quarter. Price T Rowe Associates Inc. MD increased its position 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 worth $14,411,480,000 after buying an additional 716,218 shares during the last quarter. Finally, Capital World Investors increased 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 worth $8,463,484,000 after buying an additional 193,288 shares during the last quarter. Institutional investors and hedge funds own 82.15% of the company's stock.

Visa News Roundup

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Visa is participating in the launch of the Open USD stablecoin initiative alongside major players like Stripe, Google, and BlackRock, a sign that the company is staying central to the next wave of digital payments and money movement. Visa and Google Sign on to Use Money Movement Stablecoin OpenUSD
• Positive Sentiment: Visa’s new travel platform expansion and cross-border partnership push could support transaction growth, especially as travel and experience spending remain strong. Visa redefines its role in travel with the global expansion of Visa Destinations
• Positive Sentiment: Visa said online deal hunting is helping consumers keep spending on discretionary purchases, which is encouraging for payment volume trends. Visa Says Online Deal Hunting Sustains Consumers' Discretionary Spending
• Neutral Sentiment: Visa also unveiled smartphone-based tools for small businesses to accept payments through Visa Pay, Visa Accept and Visa Direct, which supports its long-term growth story but is more incremental near term. Visa Brings Card Acceptance to SMB Smartphones
• Negative Sentiment: CEO Ryan McInerney sold 20,970 shares in a pre-arranged transaction, which can create a small amount of investor caution even though it was conducted under a 10b5-1 plan. SEC filing for CEO stock sale

Analysts Set New Price Targets

A number of brokerages have weighed in on V. Bank of America began coverage on Visa in a research 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 Visa in a report on Wednesday, April 29th. Cantor Fitzgerald restated an "overweight" rating and issued a $400.00 target price on shares of Visa in a report on Wednesday, April 29th. Loop Capital assumed coverage on Visa in a research report on Tuesday, March 31st. They set a "buy" rating and a $387.00 target price for the company. Finally, UBS Group increased their price target on Visa from $390.00 to $410.00 and gave the company a "buy" rating in a report on Wednesday, April 29th. Six investment analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Buy" and an average target price of $397.96.

Visa Trading Up 0.3%

Visa stock opened at $342.63 on Wednesday. Visa Inc. has a 52 week low of $293.89 and a 52 week high of $359.66. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.09 and a current ratio of 1.09. The firm has a market capitalization of $614.60 billion, a PE ratio of 29.85, a PEG ratio of 1.82 and a beta of 0.77. The business's 50-day simple moving average is $324.40 and its 200-day simple moving average is $324.52.

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 firm 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 firm's revenue for the quarter was up 17.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.76 EPS. Equities research analysts forecast that Visa Inc. will post 13.09 earnings per share for the current year.

Visa Dividend Announcement

The firm also recently disclosed 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 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend was Tuesday, May 12th. Visa's dividend payout ratio is currently 23.34%.

Visa declared that its Board of Directors has approved 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 reacquire up to 3.6% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its shares are undervalued.

Insider Activity at Visa

In related news, CFO Chris Suh sold 10,639 shares of the business's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $324.81, for a total transaction of $3,455,653.59. Following the transaction, the chief financial officer owned 9,872 shares of the company's stock, valued at approximately $3,206,524.32. The trade was a 51.87% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Ryan Mcinerney sold 20,970 shares of the company's stock in a transaction on Monday, June 29th. The shares were sold at an average price of $340.25, for a total transaction of $7,135,042.50. Following the transaction, the chief executive officer owned 15,174 shares of the company's stock, valued at approximately $5,162,953.50. The trade was a 58.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 63,064 shares of company stock valued at $21,289,800 over the last three months. 0.12% of the stock is owned by company insiders.

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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