Visa (NYSE:V) Trading Down 2.2% – Here’s Why

Visa Inc. (NYSE:V) shares traded down 2.2% during mid-day trading on Friday . The stock traded as low as $361.52 and last traded at $362.32. Approximately 5,086,532 shares changed hands during trading, a decline of 36% from the average daily volume of 7,934,634 shares. The stock had previously closed at $370.47.

Analysts Set New Price Targets

V has been the topic of a number of analyst reports. Morgan Stanley reaffirmed an “overweight” rating and issued a $416.00 price target on shares of Visa in a research note on Wednesday, July 29th. Sanford C. Bernstein restated an “outperform” rating and issued a $450.00 target price on shares of Visa in a report on Tuesday, June 2nd. Oppenheimer reaffirmed an “outperform” rating and issued a $403.00 target price (up from $391.00) on shares of Visa in a research note on Wednesday, April 29th. Weiss Ratings upgraded shares of Visa from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, July 30th. Finally, UBS Group reissued a “buy” rating and set a $420.00 price target (up from $410.00) on shares of Visa in a research report on Wednesday, July 29th. Seven equities research analysts have rated the stock with a Strong Buy rating and twenty-four have given a Buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average price target of $413.58.

Visa Price Performance

The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.99 and a current ratio of 0.99. The business has a 50-day simple moving average of $344.41 and a 200 day simple moving average of $326.79. The firm has a market cap of $649.92 billion, a P/E ratio of 30.81, a price-to-earnings-growth ratio of 1.98 and a beta of 0.74.

Visa (NYSE:V) last issued its quarterly earnings data on Tuesday, July 28th. The credit-card processor reported $3.32 earnings per share for the quarter, topping analysts’ consensus estimates of $3.23 by $0.09. Visa had a return on equity of 67.68% and a net margin of 50.78%.The firm had revenue of $11.63 billion for the quarter, compared to analyst estimates of $11.40 billion. During the same period last year, the company earned $2.98 EPS. The business’s quarterly revenue was up 14.4% compared to the same quarter last year. On average, analysts anticipate that Visa Inc. will post 13.14 earnings per share for the current fiscal year.

Visa Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Tuesday, August 11th will be paid a $0.67 dividend. The ex-dividend date of this dividend is Tuesday, August 11th. This represents a $2.68 dividend on an annualized basis and a yield of 0.7%. Visa’s dividend payout ratio (DPR) is presently 22.79%.

Visa announced that its board has authorized a stock repurchase plan on Tuesday, April 28th that authorizes the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization authorizes the credit-card processor to buy up to 3.6% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its stock is undervalued.

Insider Activity at Visa

In other Visa news, CEO Ryan Mcinerney sold 20,970 shares of the business’s stock in a transaction on Monday, June 29th. The shares were sold at an average price of $340.25, for a total transaction of $7,135,042.50. Following the transaction, the chief executive officer directly owned 15,174 shares of the company’s stock, valued at approximately $5,162,953.50. The trade was a 58.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Julie B. Rottenberg sold 2,027 shares of the company’s stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $360.00, for a total transaction of $729,720.00. Following the completion of the transaction, the general counsel owned 18,404 shares of the company’s stock, valued at $6,625,440. This trade represents a 9.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 101,398 shares of company stock valued at $35,831,433 in the last 90 days. 0.12% of the stock is owned by company insiders.

Institutional Trading of Visa

Large investors have recently bought and sold shares of the company. Norges Bank bought a new position in shares of Visa during the fourth quarter valued at approximately $5,877,738,000. Cardano Risk Management B.V. boosted its position in shares of Visa by 867.6% in the 4th quarter. Cardano Risk Management B.V. now owns 8,213,610 shares of the credit-card processor’s stock worth $2,880,595,000 after purchasing an additional 7,364,762 shares in the last quarter. Diamant Asset Management Inc. grew its stake in shares of Visa by 29,706.3% in the 1st quarter. Diamant Asset Management Inc. now owns 7,332,947 shares of the credit-card processor’s stock worth $2,216,310,000 after buying an additional 7,308,345 shares during the last quarter. J. Stern & Co. LLP grew its stake in shares of Visa by 12,497.1% in the 4th quarter. J. Stern & Co. LLP now owns 3,378,039 shares of the credit-card processor’s stock worth $1,184,712,000 after buying an additional 3,351,223 shares during the last quarter. Finally, Victory Capital Management Inc. increased its position in Visa by 48.2% during the 4th quarter. Victory Capital Management Inc. now owns 6,508,089 shares of the credit-card processor’s stock valued at $2,282,472,000 after buying an additional 2,116,463 shares in the last quarter. 82.15% of the stock is owned by institutional investors.

Visa Company Profile

Visa Inc is a global payments technology company that facilitates electronic funds transfers and digital commerce by connecting consumers, merchants, financial institutions and governments. The firm operates one of the world’s largest payment networks, providing processing, authorization, clearing and settlement services for credit, debit and prepaid card transactions. Visa’s network-based model enables partner banks and other issuers to offer branded payment products while Visa focuses on the infrastructure, standards and technologies that move money securely and efficiently around the world.

Visa’s product and service portfolio includes card-based payment products for consumers and businesses, real-time push-payment capabilities, tokenization and authentication services, fraud and risk-management tools, data analytics and APIs for fintech and merchant integration.