JPMorgan Chase & Co. has reduced its stake in Visteon Corporation (NASDAQ:VC) by 16.3% in the third quarter of 2023, according to its latest 13F filing with the Securities and Exchange Commission (SEC). The financial institution sold 72,506 shares, leaving it with a total of 371,241 shares valued at approximately $44,497,000 at the end of the quarter.
This divestment reflects a broader trend among institutional investors adjusting their positions in Visteon. The Royal Bank of Canada notably increased its holdings by an impressive 389.3% during the first quarter, acquiring an additional 17,497 shares to reach a total of 21,992 shares valued at $1,707,000. Similarly, Goldman Sachs Group Inc. raised its position by 31.5%, now owning 249,564 shares worth approximately $19,371,000.
The State of New Jersey Common Pension Fund D also grew its investment by 2.1%, adding 469 shares to its holdings for a total of 22,422 shares valued at $2,092,000. Envestnet Asset Management Inc. increased its stake by 42.4%, bringing its total to 35,161 shares, valued at $3,280,000. Atria Investments Inc. entered the picture by purchasing a new position in Visteon worth $243,000 during the second quarter. Collectively, institutional investors now hold approximately 99.71% of Visteon’s stock.
Analysts Adjust Ratings
Recent analyst reports have prompted further examination of Visteon’s stock performance. Robert W. Baird has lowered its price target from $126.00 to $119.00, maintaining an “outperform” rating. Wall Street Zen also adjusted its recommendation, downgrading Visteon from a “buy” to a “hold” rating.
UBS Group reduced its price target from $130.00 to $120.00, while The Goldman Sachs Group has set a target of $120.00. Royal Bank of Canada has made a similar adjustment, decreasing its target from $140.00 to $127.00. Currently, nine analysts rate the stock as a “buy,” while six have issued a “hold” rating, leading to a consensus rating of “Moderate Buy” and a price target of $122.15, according to MarketBeat.com.
On February 19, 2024, Visteon reported its quarterly earnings, revealing earnings per share of $2.96, surpassing analysts’ estimates of $2.08 by $0.88. The company generated $948.00 million in revenue, beating the anticipated $920.25 million. Visteon’s net margin stood at 6.93%, with a return on equity of 17.94%. Year-over-year revenue growth was recorded at 1.0%, although earnings per share showed a decline from $4.44 in the same quarter the previous year. Analysts predict Visteon will post $8.42 earnings per share for the current year.
Dividend Increase and Company Overview
In a bid to enhance shareholder value, Visteon recently declared a quarterly dividend of $0.375 per share, set to be paid on March 16, 2024. Shareholders of record as of March 2 will receive this payout, marking an increase from the previous dividend of $0.28. This equates to an annualized dividend of $1.50 and a yield of 1.5%, with an ex-dividend date also set for March 2. Visteon’s payout ratio currently stands at 11.66%.
Founded in 2000 as a spin-off from Ford Motor Company, Visteon Corporation has established itself as a global supplier of automotive electronics. The company specializes in designing and manufacturing cockpit electronics and connected vehicle solutions, including digital instrument clusters and advanced driver interaction technologies. By integrating hardware and software, Visteon aims to enhance driver experience, safety, and connectivity in modern vehicles.
