Citizens Financial Group Boosts Visa Stake by 3.3% in Q2

Citizens Financial Group Inc. has increased its holdings in Visa Inc. by 3.3% during the second quarter of 2023, according to a recent filing with the Securities and Exchange Commission. The Rhode Island-based financial institution acquired an additional 3,372 shares, bringing its total ownership to 104,948 shares. As of the latest report, these holdings are valued at approximately $37.26 million.

Several other institutional investors have also adjusted their stakes in Visa. Semus Wealth Partners LLC raised its holdings by 0.8% during the first quarter, now owning 3,449 shares worth $1.21 million. Similarly, BankPlus Wealth Management LLC increased its stake by 0.9% in the second quarter, resulting in a total of 3,338 shares valued at $1.19 million. Transcendent Capital Group LLC and Valued Retirements Inc. also made notable increases, with the former raising its holdings by 2.9% and the latter by 4.3%.

Hedge funds and institutional investors collectively own 82.15% of Visa’s stock, indicating strong confidence in the company’s performance.

Insider Transactions and Stock Performance

In related news, Visa’s General Counsel, Julie B. Rottenberg, sold 2,027 shares on August 18, 2023, at an average price of $344.02, totaling $697,328.54. Following this transaction, Rottenberg retained 11,925 shares, valued at about $4.10 million. This sale marked a 14.53% reduction in her ownership.

Additionally, Director Lloyd Carney sold 900 shares on November 4, 2023, for a total of $302,832. After this sale, Carney owns 2,468 shares, worth approximately $830,432.64, reflecting a decrease of 26.72% in his position. In total, insiders sold 23,897 shares worth $8.16 million over the past 90 days.

Visa’s performance remained robust as the company announced its quarterly earnings on October 28, 2023. The credit-card processor reported earnings per share of $2.98, exceeding the consensus estimate of $2.97 by a marginal $0.01. The firm achieved revenues of $10.72 billion, surpassing expectations of $10.60 billion. Visa’s net margin stood at 50.15%, with a return on equity of 60.31%.

Dividend Increase and Analyst Ratings

In a positive development for shareholders, Visa announced a quarterly dividend of $0.67, set to be paid on December 1, 2023, to stockholders of record as of November 12, 2023. This represents an increase from the previous quarterly dividend of $0.59, resulting in an annualized dividend of $2.68 and a dividend yield of 0.8%. The company’s dividend payout ratio is currently 26.25%.

Equity analysts have generally maintained a favorable outlook on Visa. Weiss Ratings reaffirmed a “buy” rating on October 8, while Macquarie adjusted its target price from $425.00 to $410.00 on October 29. Other institutions, such as Erste Group Bank and Barclays, have also provided varying assessments, with Barclays increasing its price target to $408.00. Currently, Visa holds an average rating of “Moderate Buy” with a consensus price target of $400.00.

Visa Inc. continues to operate as a key player in the payment technology sector, providing a range of services including credit, debit, and prepaid card products, as well as various transaction processing solutions. Investors and analysts alike are closely watching the company’s performance as it adapts to the evolving financial landscape.