Visa (NYSE:V) Stock Price Down 3.1% – Here’s Why

Visa Inc. (NYSE:V)’s share price dropped 3.1% on Friday . The company traded as low as $312.82 and last traded at $314.1270. Approximately 11,625,592 shares changed hands during mid-day trading, an increase of 36% from the average daily volume of 8,544,014 shares. The stock had previously closed at $324.18.

Wall Street Analyst Weigh In

V has been the topic of several recent research reports. Piper Sandler set a $160.00 target price on Visa in a research report on Wednesday, January 28th. Wells Fargo & Company upgraded Visa to a “strong-buy” rating in a research note on Wednesday, October 22nd. Daiwa Securities Group raised Visa from a “neutral” rating to an “outperform” rating and set a $370.00 target price for the company in a report on Monday, February 2nd. Morgan Stanley reissued an “overweight” rating and issued a $411.00 price target (up from $398.00) on shares of Visa in a report on Friday, January 30th. Finally, UBS Group reaffirmed a “buy” rating on shares of Visa in a research note on Tuesday, January 13th. Six analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Buy” and an average target price of $392.21.

Visa Trading Down 3.1%

The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.11 and a current ratio of 1.11. The stock has a market cap of $570.19 billion, a P/E ratio of 29.47, a P/E/G ratio of 1.89 and a beta of 0.79. The stock has a 50-day moving average price of $338.32 and a 200-day moving average price of $340.18.

Visa (NYSE:V) last posted its quarterly earnings data on Thursday, January 29th. The credit-card processor reported $3.17 earnings per share for the quarter, topping the consensus estimate of $3.14 by $0.03. The company had revenue of $10.90 billion for the quarter, compared to analysts’ expectations of $10.69 billion. Visa had a net margin of 50.23% and a return on equity of 61.74%. Visa’s revenue for the quarter was up 14.6% compared to the same quarter last year. During the same period in the prior year, the business earned $2.75 earnings per share. On average, equities research analysts expect that Visa Inc. will post 11.3 EPS for the current year.

Visa Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, March 2nd. Stockholders of record on Tuesday, February 10th will be issued a $0.67 dividend. The ex-dividend date of this dividend is Tuesday, February 10th. This represents a $2.68 dividend on an annualized basis and a dividend yield of 0.9%. Visa’s dividend payout ratio is presently 25.14%.

Insider Buying and Selling at Visa

In other news, insider Paul D. Fabara sold 2,172 shares of Visa stock in a transaction on Friday, November 21st. The shares were sold at an average price of $325.93, for a total transaction of $707,919.96. Following the completion of the sale, the insider directly owned 26,413 shares of the company’s stock, valued at approximately $8,608,789.09. The trade was a 7.60% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Ryan Mcinerney sold 10,485 shares of the company’s stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $349.18, for a total transaction of $3,661,152.30. Following the completion of the transaction, the chief executive officer owned 9,401 shares of the company’s stock, valued at $3,282,641.18. This trade represents a 52.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.12% of the company’s stock.

Hedge Funds Weigh In On Visa

Several institutional investors have recently modified their holdings of the company. Winter & Associates Inc. purchased a new position in shares of Visa during the 4th quarter valued at about $305,000. Night Owl Capital Management LLC boosted its stake in Visa by 1.5% in the fourth quarter. Night Owl Capital Management LLC now owns 95,262 shares of the credit-card processor’s stock worth $33,409,000 after buying an additional 1,402 shares in the last quarter. Visionary Wealth Advisors grew its position in Visa by 4.0% during the fourth quarter. Visionary Wealth Advisors now owns 10,072 shares of the credit-card processor’s stock valued at $3,532,000 after acquiring an additional 383 shares during the last quarter. UMB Bank n.a. raised its stake in shares of Visa by 2.9% during the fourth quarter. UMB Bank n.a. now owns 163,046 shares of the credit-card processor’s stock worth $57,182,000 after acquiring an additional 4,588 shares in the last quarter. Finally, GM Advisory Group LLC lifted its holdings in shares of Visa by 86.1% in the 4th quarter. GM Advisory Group LLC now owns 26,333 shares of the credit-card processor’s stock worth $9,235,000 after acquiring an additional 12,185 shares during the last quarter. 82.15% of the stock is currently 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.