Royal Bank of Canada Sells 60,820 Shares of Visa Inc. $V

Royal Bank of Canada cut its position in shares of Visa Inc. (NYSE:V) by 0.5% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 12,520,047 shares of the credit-card processor’s stock after selling 60,820 shares during the period. Visa makes up 0.7% of Royal Bank of Canada’s portfolio, making the stock its 24th largest holding. Royal Bank of Canada owned about 0.70% of Visa worth $3,784,058,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Clayton Financial Group LLC lifted its stake in shares of Visa by 446.2% during the 4th quarter. Clayton Financial Group LLC now owns 71 shares of the credit-card processor’s stock worth $25,000 after acquiring an additional 58 shares during the last quarter. PayPay Securities Corp increased its stake in Visa by 102.7% in the fourth quarter. PayPay Securities Corp now owns 75 shares of the credit-card processor’s stock worth $26,000 after purchasing an additional 38 shares during the period. Cresta Advisors Ltd. purchased a new stake in Visa in the fourth quarter worth $26,000. Parvin Asset Management LLC lifted its position in shares of Visa by 200.0% during the third quarter. Parvin Asset Management LLC now owns 75 shares of the credit-card processor’s stock worth $26,000 after purchasing an additional 50 shares during the last quarter. Finally, Dorato Capital Management purchased a new stake in shares of Visa during the fourth quarter valued at $30,000. 82.15% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Visa

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Quarterly results exceeded expectations. Visa reported fiscal Q3 revenue of $11.63 billion, up 14.4% year over year and ahead of the roughly $11.40 billion consensus estimate. Adjusted EPS was $3.32, compared with expectations of $3.23 and $2.98 a year earlier. The company also reported $5.63 billion in profit. Visa Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Spending and transaction growth remained resilient. Double-digit growth in payments volume, cross-border volume and processed transactions indicates continued strength in consumer and business spending, supporting Visa’s core payments outlook. Visa Expands Money Movement as Card Spending Accelerates
• Positive Sentiment: New growth initiatives could expand Visa’s addressable market. Visa highlighted investments in stablecoin settlement, tokenized deposits, wallet infrastructure, commercial payments and money movement. Its participation in the OpenStandard consortium and plans to support OpenUSD could create longer-term opportunities beyond traditional card transactions. Visa Outlines Stablecoin Strategy
• Neutral Sentiment: X Money provides a potential incremental payments channel. Elon Musk’s X launched a broader banking and payments product using Visa-branded debit cards and Cross River Bank’s infrastructure. The partnership may increase card volumes, but its financial contribution to Visa is not yet clear. X Money Launches With Visa Debit Card
• Negative Sentiment: Margin concerns limited the market’s reaction. Despite the earnings beat, investors focused on profitability and expense trends, leading to weakness in extended trading. Visa’s planned restructuring also introduces execution and severance-cost risks.
• Negative Sentiment: Workforce reductions underscore a significant transition. Visa plans to eliminate approximately 2,600 positions, or 7% of its workforce, primarily in technology and product operations, as it uses AI to improve efficiency and redirect investment toward stablecoins, B2B payments and other growth areas. While potentially positive for costs, the cuts may raise concerns about disruption and future innovation. Visa Workforce Reduction

Insider Activity at Visa

In related news, General Counsel Julie B. Rottenberg sold 2,027 shares of the business’s stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $360.00, for a total value of $729,720.00. Following the completion of the transaction, the general counsel owned 18,404 shares of the company’s stock, valued at $6,625,440. The trade was a 9.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Chris Suh sold 10,639 shares of the company’s stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $324.81, for a total value of $3,455,653.59. Following the sale, the chief financial officer owned 9,872 shares of the company’s stock, valued at approximately $3,206,524.32. This represents a 51.87% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 44,126 shares of company stock valued at $14,928,871 over the last ninety days. 0.12% of the stock is owned by company insiders.

Visa Stock Up 1.1%

NYSE:V opened at $366.49 on Wednesday. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.09 and a quick ratio of 1.09. Visa Inc. has a 1-year low of $293.89 and a 1-year high of $371.16. The company has a 50-day moving average of $338.90 and a 200 day moving average of $325.25. The firm has a market cap of $657.40 billion, a PE ratio of 31.92, a price-to-earnings-growth ratio of 1.93 and a beta of 0.75.

Visa (NYSE:V) last posted its quarterly earnings results on Tuesday, July 28th. The credit-card processor reported $3.32 EPS for the quarter, beating the consensus estimate of $3.23 by $0.09. Visa had a net margin of 51.68% and a return on equity of 65.00%. The business had revenue of $11.63 billion during the quarter, compared to analyst estimates of $11.40 billion. During the same quarter in the previous year, the business posted $2.98 EPS. The company’s quarterly revenue was up 14.4% compared to the same quarter last year. As a group, research analysts anticipate that Visa Inc. will post 13.12 EPS for the current fiscal year.

Visa declared that its board has initiated a stock repurchase plan on Tuesday, April 28th that authorizes the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization authorizes the credit-card processor to buy up to 3.6% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the stock. Truist Financial raised their price target on shares of Visa from $371.00 to $394.00 and gave the stock a “buy” rating in a research note on Friday, July 24th. Citigroup lowered their price objective on shares of Visa from $450.00 to $400.00 and set a “buy” rating for the company in a research report on Tuesday, April 14th. BMO Capital Markets restated an “outperform” rating and issued a $387.00 target price (up from $375.00) on shares of Visa in a research note on Wednesday, July 15th. Weiss Ratings raised shares of Visa from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, July 6th. Finally, Raymond James Financial reaffirmed an “outperform” rating and set a $389.00 target price on shares of Visa in a research report on Wednesday, April 29th. Eight research analysts have rated the stock with a Strong Buy rating and twenty have assigned a Buy rating to the stock. According to data from MarketBeat, Visa currently has a consensus rating of “Buy” and an average target price of $399.41.

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.