Here’s What a $362 Million Visa Stock Sale Signals for Long-Term Investors

Visa (NYSE:V) saw a major stake reduction by Los Angeles Capital Management, which sold 1 million shares for an estimated $361.9 million, per an SEC filing on October 20.

What Happened

According to an SEC filing on October 20, Los Angeles Capital Management reduced its position in Visa by 1 million shares during the third quarter. The sale was estimated at $361.9 million. The fund now holds 277,352 shares valued at $94.7 million as of September 30. In the previous quarter, Visa represented less than 1.8% of fund assets.

What Else to Know

This sale reduced Visa to 0.35% of Los Angeles Capital Management's 13F AUM as of September 30.

Top five holdings after the filing:

• NASDAQ:NVDA: $2.7 billion (9.3% of AUM)
• NASDAQ:AAPL: $1.9 billion (6.6% of AUM)
• NASDAQ:MSFT: $1.9 billion (6.5% of AUM)
• NASDAQ:GOOGL: $1.4 billion (4.6% of AUM)
• NASDAQ:META: $1.12 billion (3.8% of AUM)

As of market close on Wednesday, Visa shares were priced at $341.28, up 21% over the past year and outperforming the S&P 500's 18.5% gain in the same period.

Company Overview

Company Snapshot

• Visa provides payment processing services, card products, and value-added solutions under brands such as Visa, Interlink, VPAY, and PLUS.
• The company facilitates digital payments through its global VisaNet network and provides value-added services.
• Its core customers include consumers, merchants, financial institutions, businesses, and government entities worldwide.

Visa is a leading payments technology company operating on a global scale, connecting consumers, merchants, and financial institutions through its advanced transaction processing network. Visa's strategic partnerships and focus on innovation reinforce its competitive position in the financial services sector.

Foolish Take

Los Angeles Capital Management’s sharp reduction in its Visa stake this quarter looks less like a loss of conviction and more like a large-scale rebalance after a strong run in megacap tech. The firm sold 1 million Visa shares, cutting the position to just 0.35% of its portfolio. The sale came as Los Angeles Capital trimmed several blue-chip holdings (Walmart, for example, as well) while maintaining heavy exposure to market leaders like Nvidia, Apple, and Microsoft, each accounting for more than 6% of assets.

The disclosure came just days before Visa reported fourth-quarter earnings showing 12% revenue growth to $10.7 billion and a 7% rise in non-GAAP net income. CEO Ryan McInerney said Visa continues to invest in AI-driven commerce and real-time money movement, signaling confidence in long-term growth. The company also raised its dividend by 14% and repurchased $22.8 billion of stock over the fiscal year.

For long-term investors, the fund’s decision likely suggests a tactical profit-taking phase amid broad market gains, not a loss of faith in Visa’s fundamentals. Ultimately, Visa’s expanding cross-border volume and steady payments growth continue to support its leadership in digital payments.

Glossary

13F: A quarterly report filed by institutional investment managers disclosing their equity holdings to the SEC.
Assets Under Management (AUM): The total market value of assets an investment firm manages on behalf of clients.
Quarter (Q3, Q2): A three-month period in a company's financial year, often used for reporting results.
Outperforming: Achieving a higher return or growth rate than a benchmark or comparable index.
Stake: The ownership interest or share held in a particular company by an investor or fund.
Top Holdings: The largest investments in a fund or portfolio, typically by market value.
Reportable Assets: Assets that must be disclosed in regulatory filings, such as those required by the SEC.
Value-added Services: Additional services provided beyond core offerings to enhance customer value or experience.
VisaNet: Visa's global electronic payment processing network connecting financial institutions, merchants, and consumers.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Visa. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.