Dixon Mitchell Investment Counsel Inc. Reduces Stake in Visa Inc.

Dixon Mitchell Investment Counsel Inc. has decreased its investment in Visa Inc. (NYSE:V - Free Report) by 1.8% during the fourth quarter, according to its latest filing with the Securities and Exchange Commission (SEC). After selling 7,186 shares during this period, the fund now holds a total of 395,909 shares of the renowned credit card processor. Visa constitutes approximately 5.8% of Dixon Mitchell Investment Counsel's total portfolio, making it the second largest position held by the fund.

The value of Dixon Mitchell Investment Counsel’s holdings in Visa stood at $125,123,000 based on its most recent SEC filing.

Other Institutional Investors Adjust Their Visa Holdings

In addition, several other large institutional investors have made adjustments to their positions in Visa. Hennion & Walsh Asset Management Inc. increased its holdings in Visa shares by 6.4% over the same period, now owning 45,580 shares worth $14,405,000 after acquiring an additional 2,734 shares. Mason & Associates Inc. also boosted its stake by 2.7%, bringing its total to 1,895 shares valued at $599,000 after purchasing an additional 50 shares. Additionally, Lakewood Asset Management LLC entered a new position in Visa worth $225,000.

SignalPoint Asset Management LLC raised its holdings by 4.2%, now owning 4,170 shares worth $1,318,000 after adding 169 shares. Heritage Family Offices LLP also reported a 4.8% increase in its stake, totaling 6,392 shares valued at $2,020,000 after buying an extra 291 shares. Notably, 82.15% of Visa's stock is currently owned by hedge funds and other institutional investors.

Visa's Stock Performance

Recently, Visa's stock opened at $317.10. The company boasts a market capitalization of $590.71 billion with a P/E ratio of 32.59 and a PEG ratio of 2.06. Over the last year, Visa's stock has seen a low of $252.70 and a high of $321.61. Its fifty-day moving average is $312.94, while the two-hundred day moving average is $287.85. Visa has a debt-to-equity ratio of 0.55, along with both a quick ratio and a current ratio of 1.28.

Strong Earnings Report

On October 29th, Visa released its latest earnings, reporting earnings per share (EPS) of $2.71 for the quarter, surpassing the consensus estimate of $2.58 by $0.13. The company reported revenues of $9.62 billion, exceeding analyst expectations of $9.49 billion. Visa’s return on equity was an impressive 53.16%, and its net margin stood at 54.96%, with reported revenues up 11.7% year-over-year compared to the same quarter last year. Analysts predict Visa will achieve an average EPS of 11.22 for the current year.

Increased Dividend Announcement

Visa recently announced an increase in its quarterly dividend, which was paid on December 2nd. Stockholders of record on November 12th received a dividend of $0.59, cumulatively amounting to an annualized dividend of $2.36, resulting in a dividend yield of 0.74%. This increase marks a rise from the previous quarterly dividend of $0.52, with Visa’s current dividend payout ratio (DPR) at 24.25%.

Insider Activity

In related insider news, CEO Ryan McInerney sold 8,620 shares of Visa on January 2nd at an average price of $317.78, totaling approximately $2.74 million. This transaction was reported in a legal filing with the SEC. Additionally, insider Paul D. Fabara sold 2,171 shares on November 22nd at an average price of $307.97, leading to a total of roughly $668,602.87, thus reducing his stake by 10.82%. Insiders currently hold 0.13% of the company’s stock.

Positive Analyst Ratings

Wall Street analysts have expressed optimistic forecasts regarding Visa. In a recent report, Robert W. Baird increased their price target on Visa shares from $330.00 to $340.00, marking the stock as “outperform.” Similarly, Piper Sandler raised their target price from $319.00 to $322.00 with an “overweight” rating. Deutsche Bank also lifted their target from $300.00 to $340.00, giving Visa a “buy” rating. Royal Bank of Canada pushed their target from $311.00 to $322.00, maintaining an “outperform” rating, while Susquehanna raised their price target from $339.00 to $375.00. Currently, Visa enjoys a consensus rating of "Moderate Buy" and an average target price of $331.92 among analysts.

About Visa Inc.

Visa Inc. operates as a global payment technology company. It is recognized for its transaction processing network known as VisaNet, which facilitates payment authorization, clearing, and settlement. Visa offers a range of card products, including credit, debit, and prepaid cards, along with various digital payment solutions such as tap to pay and tokenization services. It also provides services such as Visa Direct, Visa B2B Connect, and fraud mitigation solutions, positioning itself as a leader in the payment processing sector.

Visa, Investments, Dividends