Insiders Sell Visa Stock: Is A Pullback Coming?

• Kornitzer Capital Management Inc. KS has reduced its position in Visa Inc. (V) by 2.4%, selling 1,751 shares.
• High-level insiders, including the CEO and General Counsel, have recently sold significant amounts of their stock holdings.
• Despite the sales, Visa posted strong quarterly earnings, beating analyst expectations on both revenue and earnings per share.
• Wall Street analysts continue to show strong support for Visa, with a consensus “Moderate Buy” rating and optimistic price targets.

Major Fund Trims Visa Holdings Amid Insider Sells

Recent filings with the Securities and Exchange Commission reveal that Kornitzer Capital Management Inc. KS has trimmed its investment in Visa Inc. (NYSE:V), adding to a wave of insider selling that could signal a shift in sentiment for the credit card giant. This activity comes even as the company posts robust financial results and maintains favor with Wall Street analysts.

Kornitzer Capital’s Strategic Reduction

In the second quarter, Kornitzer Capital Management sold 1,751 shares of Visa, marking a 2.4% decrease in its holdings. The firm now holds 70,407 shares, valued at approximately $25 million according to its latest filing. While this is a modest reduction, it contributes to a broader narrative of institutional and insider moves surrounding the company’s stock.

Other institutional investors have been active as well, though with mixed strategies. While some new, smaller stakes were purchased by firms like Keystone Global Partners LLC and von Borstel & Associates Inc., the moves by established holders and company executives are drawing more scrutiny.

Executive Stock Sales Raise Eyebrows

More concerning for investors might be the recent transactions by Visa’s own leadership. General Counsel Julie B. Rottenberg sold 2,027 shares for a total of nearly $700,000. In a more dramatic move, CEO Ryan Mcinerney sold 10,485 shares, pocketing over $3.5 million. This sale represented a staggering 95.13% decrease in the CEO’s directly owned position, a move that is sure to capture the market’s attention.

Contrasting Signals: Strong Fundamentals and Analyst Confidence

While the insider sales could be a red flag for some, they contrast sharply with the company’s powerful performance and the prevailing optimism from financial analysts.

Blockbuster Earnings and Performance

Visa recently announced quarterly earnings that handily beat expectations. The company reported earnings per share (EPS) of $2.98, surpassing the consensus estimate of $2.85. Revenue was also a bright spot, coming in at $10.17 billion against an expected $9.82 billion, a 14.3% increase from the same quarter last year. The stock currently trades around $347.71, with a market capitalization of $637.28 billion.

Wall Street Remains Bullish on V Stock

The analyst community remains firmly in Visa’s corner. Several prominent firms, including Wells Fargo & Company, Morgan Stanley, and UBS Group, have recently issued positive reports, with many raising their price targets. The consensus rating for Visa stock is a “Moderate Buy,” with an average price target of $392.75, suggesting significant upside from its current level. This widespread support from experts provides a strong counter-narrative to the insider selling.