Jefferies Financial Group Comments on Visa Inc.’s FY2023 Earnings (NYSE:V)

Visa Inc. (NYSE:V – Get Rating) – Equities researchers at Jefferies Financial Group increased their FY2023 earnings per share estimates for shares of Visa in a note issued to investors on Wednesday, January 18th. Jefferies Financial Group analyst T. Williams now expects that the credit-card processor will post earnings of $8.33 per share for the year, up from their previous forecast of $8.28. Jefferies Financial Group has a “Buy” rating and a $260.00 price target on the stock. The consensus estimate for Visa’s current full-year earnings is $8.28 per share. Jefferies Financial Group also issued estimates for Visa’s Q1 2024 earnings at $2.33 EPS, Q2 2024 earnings at $2.31 EPS, Q3 2024 earnings at $2.43 EPS, Q4 2024 earnings at $2.63 EPS and FY2024 earnings at $9.57 EPS.

Visa (NYSE:V – Get Rating) last issued its quarterly earnings results on Tuesday, October 25th. The credit-card processor reported $1.93 EPS for the quarter, topping analysts’ consensus estimates of $1.86 by $0.07. The company had revenue of $7.79 billion during the quarter, compared to analysts’ expectations of $7.55 billion. Visa had a return on equity of 48.56% and a net margin of 51.03%.

V has been the subject of several other research reports. Credit Suisse Group boosted their price objective on Visa from $235.00 to $245.00 and gave the company an “outperform” rating in a report on Wednesday, October 26th. Wells Fargo & Company boosted their price objective on Visa from $225.00 to $250.00 and gave the company an “overweight” rating in a report on Friday, December 2nd. UBS Group decreased their price objective on Visa from $290.00 to $287.00 and set a “buy” rating for the company in a report on Thursday, December 15th. Deutsche Bank Aktiengesellschaft reduced their price target on Visa from $270.00 to $260.00 and set a “buy” rating for the company in a report on Thursday, October 13th. Finally, BMO Capital Markets reduced their price target on Visa from $257.00 to $241.00 and set an “outperform” rating for the company in a report on Thursday, October 27th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and twenty-one have issued a buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $255.07.

Visa Stock Performance

Shares of V stock opened at $224.31 on Thursday. The stock has a market cap of $422.49 billion, a PE ratio of 32.09, a price-to-earnings-growth ratio of 1.80 and a beta of 0.95. The business has a 50-day simple moving average of $212.30 and a 200-day simple moving average of $204.30. The company has a quick ratio of 1.45, a current ratio of 1.45 and a debt-to-equity ratio of 0.61. Visa has a 52-week low of $174.60 and a 52-week high of $235.85.

Visa Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, January 3rd. Investors of record on Friday, December 16th were issued a $0.395 dividend. This represents a $1.58 dividend on an annualized basis and a yield of 0.70%. The ex-dividend date was Thursday, December 15th. Visa’s dividend payout ratio is presently 25.75%.

Visa declared that its board has approved a stock repurchase plan on Tuesday, October 25th that allows the company to repurchase $12.00 billion in outstanding shares. This repurchase authorization allows the credit-card processor to buy up to 3.1% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity at Visa

In related news, President Ryan Mcinerney sold 58,197 shares of the company’s stock in a transaction that occurred on Monday, January 9th. The stock was sold at an average price of $62.47, for a total value of $3,635,566.59. The transaction was disclosed in a legal filing with the SEC, which is available through this link. In other Visa news, insider Rajat Taneja sold 25,627 shares of the company’s stock in a transaction on Friday, December 2nd. The stock was sold at an average price of $216.67, for a total transaction of $5,552,602.09. Following the transaction, the insider now directly owns 232,112 shares in the company, valued at $50,291,707.04. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, President Ryan Mcinerney sold 58,197 shares of the company’s stock in a transaction on Monday, January 9th. The stock was sold at an average price of $62.47, for a total value of $3,635,566.59. The disclosure for this sale can be found here. 0.21% of the stock is currently owned by insiders.

Institutional Trading of Visa

Hedge funds have recently modified their holdings of the stock. MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH raised its stake in shares of Visa by 2.7% in the second quarter. MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH now owns 34,800 shares of the credit-card processor’s stock valued at $6,852,000 after acquiring an additional 913 shares in the last quarter. Venture Visionary Partners LLC raised its stake in shares of Visa by 2.9% in the second quarter. Venture Visionary Partners LLC now owns 82,339 shares of the credit-card processor’s stock valued at $16,212,000 after acquiring an additional 2,318 shares in the last quarter. Pflug Koory LLC raised its stake in shares of Visa by 14.4% in the second quarter. Pflug Koory LLC now owns 2,838 shares of the credit-card processor’s stock valued at $559,000 after acquiring an additional 357 shares in the last quarter. AustralianSuper Pty Ltd raised its stake in shares of Visa by 12.1% in the second quarter. AustralianSuper Pty Ltd now owns 2,774,636 shares of the credit-card processor’s stock valued at $546,298,000 after acquiring an additional 298,792 shares in the last quarter. Finally, First City Capital Management Inc. purchased a new position in Visa in the third quarter valued at $213,000. 81.87% of the stock is currently owned by institutional investors and hedge funds.

About Visa

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Visa, Inc engages in the provision of digital payment services. It also facilitates global commerce through the transfer of value and information among a global network of consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It offers debit cards, credit cards, prepaid products, commercial payment solutions, and global automated teller machines (ATMs).