Paul Tudor Jones (Trades, Portfolio) of Tudor Investment Corp. purchased a 526,018 share stake of Visa (V, Financial)Â at an average price of $78.27 per share during the second quarter. Since the purchase, Visa’s market price has gained an estimated 6%.
Visa is a global payments technology company that is headquartered in Foster City, California. The company works to enable consumers, businesses, banks and governments to use digital currency. Visa does not issue cards, extend credit, or set rates and fees for consumers. Instead, Visa provides financial institutions with Visa-branded payment products that they can then use to offer credit, debit, prepaid and cash-access programs to its customers. Visa currently offers its services in all continents with the exception of Antarctica, it currently offers its services to more than 200 countries and territories worldwide.
Visa has a market cap of $1.89 billion, a price-earnings (P/E) ratio of 35.96, an enterprise value of $202.34 billion and a dividend yield of 0.67.
According to GuruFocus, Visa has an 8 of 10 profitability and growth rating with an operating margin of 52.40%, a net-margin of 38.72%, a ROE of 18.59% and its EPS growth (3y) is 48.40%, ranking above 90% of the 215 companies in the global credit services industry. Visa also has a 6 of 10 financial strength rating, with a cash to debt ratio of 0.55, an equity to asset ratio of 0.51 and a Piotroski F-Score of 6, which indicates the company’s financial situation is typical for a stable company.
Over the previous year, Visa’s market price has climbed by an estimated 18%. Over the previous 10 years, its market price has skyrocketed by an estimated 485%. Paul Tudor Jones (Trades, Portfolio) likely purchased a stake in Visa because the company is expanding its operations, it is established with 58 years of operating experience, and its dividend growth has increased by 29.30% over the previous three years. Visa also has the capability to run its business operations in more than 200 countries and territories worldwide, which may have been another influencing factor for Jones's decision to purchase a stake in the company.
It is noteworthy that Paul Tudor Jones (Trades, Portfolio) was the only one of the gurus to purchase a stake in Visa during the second quarter. Ron Baron (Trades, Portfolio), First Eagle Investment (Trades, Portfolio), Dodge & Cox, Keeley Asset Management Corp (Trades, Portfolio), Tom Russo (Trades, Portfolio), John Griffin (Trades, Portfolio), Tom Gayner (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Jim Simons (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Robert Olstein (Trades, Portfolio), MS Global Franchise Fund (Trades, Portfolio), John Burbank (Trades, Portfolio) and Chuck Akre (Trades, Portfolio) all added to their holdings in Visa during the second quarter.
Jones is a Memphis, Tennessee native who founded Tudor Investment Corp., an asset management firm headquartered in Greenwich, Connecticut, in 1980. Jones also founded the Robin Hood Foundation in 1988. The foundation is New York's largest poverty fighting organization. Robin Hood has raised more than $1.95 billion for goods and services to provide hundreds of soup kitchens, homeless shelters, schools, job-training programs and other vital services that give New York’s neediest citizens the tools to build better lives.
Disclosure:Â Author does not own any shares of this company.
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