Fernbridge Capital Management LP Reduces Stake in Visa Inc.

Fernbridge Capital Management LP has recently reduced its holdings in shares of Visa Inc. (NYSE:V) by 43.4% during the third quarter. This information comes from the company's latest 13F filing with the Securities and Exchange Commission (SEC). Post this reduction, Fernbridge now holds 60,391 shares after selling 46,228 shares in the quarter. Visa Inc. makes up approximately 1.0% of Fernbridge's overall investment portfolio, ranking as their 23rd largest position. The value of Fernbridge’s investment in Visa was around $16,605,000 at the end of the latest reporting period.

Changes by Other Investors

In addition to Fernbridge, several other hedge funds have recently adjusted their positions in Visa. Peterson Financial Group Inc. entered into a new investment in Visa during the third quarter valued at around $26,000. Meanwhile, POM Investment Strategies LLC significantly increased its stake in Visa by 970.0% during the second quarter, now owning 107 shares valued at approximately $28,000 after acquiring an additional 97 shares. Reston Wealth Management LLC also invested in Visa during the third quarter, with a new stake valued at $31,000. TruNorth Capital Management LLC increased its holding by 211.9% in the same quarter, now holding 131 shares worth about $34,000 after purchasing an additional 89 shares. Bbjs Financial Advisors LLC, too, initiated a new position in Visa valued at $35,000 in the previous quarter. Overall, institutional investors and hedge funds control 82.15% of Visa’s stock.

Insider Activity

In notable insider trading, Paul D. Fabara, an insider, sold 2,171 shares of Visa on November 22, at an average price of $307.97, totaling about $668,602.87. Following this transaction, he holds 17,894 shares worth $5,510,815.18, which represents a 10.82% decrease in his position. This sale was disclosed in a filing with the SEC. Additionally, CEO Ryan McInerney sold 8,620 shares on September 3 at an average price of $276.37, amounting to $2,382,309.40. After this sale, he has 538 shares valued at around $148,687.06, marking a 94.13% decrease in his holding. Corporate insiders presently own 0.19% of Visa’s shares.

Visa Stock Overview

Visa's stock opened at $311.82 on Wednesday. The company exhibits a quick ratio of 1.28, a current ratio of 1.28, and a debt-to-equity ratio of 0.55. The stock's 50-day moving average stands at $290.37, while the 200-day moving average is at $277.80. Visa Inc. has recorded a 52-week low of $251.61 and a high of $314.50, with a market capitalization of $580.88 billion. It operates with a P/E ratio of 32.05 and a PEG ratio of 2.10, alongside a beta of 0.95.

Earnings Report

Visa issued its latest earnings report on October 29, showcasing earnings of $2.71 per share for the quarter, surpassing analysts' expectations of $2.58 by $0.13. The company achieved a net margin of 54.96% and a return on equity of 53.16%. Total revenues for the quarter reached $9.62 billion, exceeding the anticipated $9.49 billion. This marks an 11.7% increase compared to the same quarter last year, where the company posted $2.33 earnings per share.

Dividend Increase

Recently, Visa declared a quarterly dividend of $0.59, which is set to be disbursed on December 2. This increase from the previous dividend of $0.52 signifies an annualized dividend of $2.36 and a yield of 0.76%. The ex-dividend date for this payout was November 12, with Visa's current dividend payout ratio noted at 24.25%.

Analyst Ratings and Price Targets

A wave of analysts has recently provided insights on Visa. Jefferies Financial Group adjusted their price target for Visa from $320.00 to $330.00, giving the stock a "buy" rating in a report released on October 30. Macquarie has raised their target price from $300.00 to $335.00 while assigning an "outperform" rating. The Goldman Sachs Group reiterated a buy rating with a price target of $317.00 as of September 12. Piper Sandler increased their objective from $319.00 to $322.00 on the same day. BNP Paribas upgraded Visa from "neutral" to "outperform," setting a price target of $325.00. Currently, four analysts hold a hold rating, twenty-four have given a buy rating, with two presenting a strong buy rating. Analysis from MarketBeat.com illustrates that Visa has a consensus rating of "Moderate Buy" and an average price target of $321.74.

About Visa Inc.

Visa Inc. operates as a leading payment technology organization, functioning both in the United States and across the globe. The company manages VisaNet, a transaction processing network that facilitates the authorization, clearing, and settlement of payment transactions. Visa offers a variety of products including credit, debit, and prepaid card services, along with innovative payment methods such as tap to pay and tokenization.

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