Zeno Equity Partners LLP Invests $12.43 Million in Visa Inc. $V

Key Points

• Zeno Equity Partners LLP opened a new position in Visa, buying 35,441 shares worth about $12.43 million. Visa now makes up 4.9% of the firm’s portfolio and is its 8th-largest holding.
• Visa reported better-than-expected quarterly results, posting EPS of $3.31 versus estimates of $3.10 and revenue of $11.23 billion, up 17.1% year over year. The company also maintained strong profitability with a 51.68% net margin and 65.00% return on equity.
• The board authorized a $20 billion share repurchase program and Visa declared a quarterly dividend of $0.67 per share payable June 1, implying an annualized yield of about 0.8%. Analysts remain constructive, with a consensus rating of Buy and an average price target of $387.67.

Zeno Equity Partners LLP purchased a new position in shares of Visa Inc. (NYSE:V - Free Report) during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 35,441 shares of the credit-card processor's stock, valued at approximately $12,430,000. Visa makes up 4.9% of Zeno Equity Partners LLP's portfolio, making the stock its 8th largest position.

Several other large investors have also made changes to their positions in V. Invariant Investment Management acquired a new stake in Visa in the fourth quarter valued at approximately $969,000. Vanguard Group Inc. lifted its holdings in shares of Visa by 0.7% during 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 purchasing an additional 1,054,343 shares during the period. Federated Hermes Inc. lifted its holdings in shares of Visa by 24.1% during the third quarter. Federated Hermes Inc. now owns 823,262 shares of the credit-card processor's stock worth $281,045,000 after purchasing an additional 159,906 shares during the period. Mawer Investment Management Ltd. lifted its holdings in shares of Visa by 11.3% during the third quarter. Mawer Investment Management Ltd. now owns 2,352,766 shares of the credit-card processor's stock worth $803,187,000 after purchasing an additional 238,872 shares during the period. Finally, Swiss Life Asset Management Ltd lifted its holdings in shares of Visa by 4.7% during the third quarter. Swiss Life Asset Management Ltd now owns 527,530 shares of the credit-card processor's stock worth $180,088,000 after purchasing an additional 23,863 shares during the period. Institutional investors and hedge funds own 82.15% of the company's stock.

Insider Buying and Selling

In related news, Director Lloyd Carney sold 650 shares of Visa stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $309.62, for a total transaction of $201,253.00. Following the completion of the transaction, the director owned 2,679 shares of the company's stock, valued at $829,471.98. This trade represents a 19.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Ryan Mcinerney sold 31,455 shares of Visa stock in a transaction on Wednesday, April 29th. The stock was sold at an average price of $340.14, for a total transaction of $10,699,103.70. Following the transaction, the chief executive officer directly owned 15,174 shares of the company's stock, valued at $5,161,284.36. This represents a 67.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 42,744 shares of company stock valued at $14,356,010 over the last quarter. Insiders own 0.12% of the company's stock.

Visa Price Performance

Shares of NYSE V opened at $329.21 on Monday. Visa Inc. has a twelve month low of $293.89 and a twelve month high of $375.51. The firm has a fifty day simple moving average of $312.77 and a 200 day simple moving average of $325.34. The company has a market capitalization of $590.53 billion, a PE ratio of 28.68, a P/E/G ratio of 1.76 and a beta of 0.78. 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 (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, topping analysts' consensus estimates of $3.10 by $0.21. Visa had a net margin of 51.68% and a return on equity of 65.00%. The business had revenue of $11.23 billion during the quarter, compared to the consensus estimate of $10.75 billion. During the same quarter last year, the firm earned $2.76 earnings per share. Visa's quarterly revenue was up 17.1% on a year-over-year basis. On average, sell-side analysts forecast that Visa Inc. will post 13.09 EPS for the current year.

Visa announced that its board has authorized a stock repurchase plan on Tuesday, April 28th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the credit-card processor to purchase up to 3.6% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's management believes its stock is undervalued.

Visa Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, June 1st. Investors of record on Tuesday, May 12th will be paid a dividend of $0.67 per share. This represents a $2.68 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend is Tuesday, May 12th. Visa's dividend payout ratio (DPR) is currently 23.34%.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on V. Oppenheimer reiterated an "outperform" rating and set a $403.00 price target (up from $391.00) on shares of Visa in a report on Wednesday, April 29th. TD Cowen reiterated a "buy" rating on shares of Visa in a report on Friday, January 30th. Rothschild & Co Redburn set a $385.00 price target on shares of Visa in a report on Wednesday, January 28th. BMO Capital Markets began coverage on shares of Visa in a report on Tuesday, April 21st. They set an "outperform" rating and a $365.00 price target on the stock. Finally, Truist Financial set a $371.00 price target on shares of Visa and gave the stock a "buy" rating in a report on Tuesday, May 12th. Six analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, Visa currently has a consensus rating of "Buy" and a consensus price target of $387.67.

Visa News Roundup

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Visa is expanding its push into digital payments by testing stablecoin settlement in Canada and advancing AI-enabled “agentic commerce” tools, which could support long-term transaction growth and keep the company relevant as payment methods evolve. Visa Tests Stablecoin Settlement And AI Commerce To Shape Future Fees
• Positive Sentiment: Visa’s partnership with Trip.com to target digital-first travelers in Asia-Pacific adds another growth avenue in travel spending, a high-volume category that can boost payment network activity. Visa and Trip.com Partner to Reach Digital-First Travelers in Asia-Pacific
• Neutral Sentiment: Several reports framed Visa as a long-term beneficiary of crypto and blockchain adoption, but these pieces were more thesis-driven than near-term catalysts for the stock. Crypto and Blockchain Stocks Positioned for Long-Term Growth
• Neutral Sentiment: Visa continues to receive favorable analyst coverage, with brokerages assigning an average “Buy” rating, which supports sentiment but does not appear to be a new catalyst. Visa Inc. Receives Average Recommendation of "Buy" from Brokerages
• Negative Sentiment: Visa is facing renewed regulatory scrutiny in the U.K. and Europe, where authorities are pushing for more fee transparency and alternative payment options, raising the risk of pressure on card-network fees and market power. Should Visa & Mastercard Investors Worry About UK & Europe's Moves?
• Negative Sentiment: The UK Payments Systems Regulator also proposed new reporting rules for Visa and Mastercard after saying the two networks do not face effective competition, reinforcing concerns about tighter oversight. UK PSR proposes new reporting rules for Mastercard and Visa
• Negative Sentiment: Visa’s own fraud warnings highlight a rising threat from AI-powered scams and criminal targeting of consumers, which could increase compliance and security costs even if the company is helping defend against the problem. Visa Says Criminals Target People as Core Payment Security Tightens

Visa Profile

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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