Visa (NYSE:V) Trading Down 1.3% – What’s Next?

Visa Inc. (NYSE:V) was down 1.3% during mid-day trading on Monday . The stock traded as low as $318.43 and last traded at $319.5060. Approximately 5,564,618 shares traded hands during mid-day trading, a decline of 29% from the average daily volume of 7,830,366 shares. The stock had previously closed at $323.57.

Analysts Set New Price Targets

A number of research firms have weighed in on V. Evercore set a $350.00 price objective on shares of Visa in a research note on Wednesday, April 29th. Raymond James Financial restated an “outperform” rating and issued a $389.00 target price on shares of Visa in a report on Wednesday, April 29th. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $400.00 price target on shares of Visa in a research report on Wednesday, April 29th. Morgan Stanley reiterated an “overweight” rating and set a $415.00 price target on shares of Visa in a research note on Wednesday, April 29th. Finally, Citigroup decreased their price objective on Visa from $450.00 to $400.00 and set a “buy” rating for the company in a report on Tuesday, April 14th. Six research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Buy” and an average price target of $387.78.

Visa Stock Performance

The company has a market cap of $573.12 billion, a PE ratio of 27.83, a P/E/G ratio of 1.73 and a beta of 0.77. The company’s fifty day moving average price is $316.53 and its 200 day moving average price is $324.48. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.09 and a quick ratio of 1.09.

Visa (NYSE:V) last issued its quarterly earnings data on Tuesday, April 28th. The credit-card processor reported $3.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.10 by $0.21. Visa had a net margin of 51.68% and a return on equity of 65.00%. The business had revenue of $11.23 billion during the quarter, compared to the consensus estimate of $10.75 billion. During the same period in the prior year, the firm posted $2.76 EPS. The firm’s quarterly revenue was up 17.1% compared to the same quarter last year. On average, equities research analysts predict that Visa Inc. will post 13.09 earnings per share for the current year.

Visa Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 1st. Investors of record on Tuesday, May 12th were issued a dividend of $0.67 per share. This represents a $2.68 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Tuesday, May 12th. Visa’s dividend payout ratio (DPR) is 23.34%.

Visa declared that its board has authorized a stock buyback program on Tuesday, April 28th that allows the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization allows the credit-card processor to buy up to 3.6% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s management believes its shares are undervalued.

Insider Activity

In related news, Director Lloyd Carney sold 650 shares of the stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $309.62, for a total transaction of $201,253.00. Following the completion of the transaction, the director owned 2,679 shares in the company, valued at approximately $829,471.98. This represents a 19.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Chris Suh sold 10,639 shares of Visa stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $324.81, for a total transaction of $3,455,653.59. Following the completion of the sale, the chief financial officer directly owned 9,872 shares in the company, valued at approximately $3,206,524.32. This represents a 51.87% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 42,744 shares of company stock valued at $14,356,010 in the last ninety days. 0.12% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Visa

A number of hedge funds have recently modified their holdings of V. Brighton Jones LLC boosted its position in Visa by 50.1% during the fourth quarter. Brighton Jones LLC now owns 20,635 shares of the credit-card processor’s stock worth $6,522,000 after purchasing an additional 6,883 shares during the period. Revolve Wealth Partners LLC raised its position in shares of Visa by 68.9% in the fourth quarter. Revolve Wealth Partners LLC now owns 11,811 shares of the credit-card processor’s stock valued at $3,733,000 after purchasing an additional 4,817 shares during the period. Nicholas Hoffman & Company LLC. lifted its stake in shares of Visa by 4.6% during the 1st quarter. Nicholas Hoffman & Company LLC. now owns 10,941 shares of the credit-card processor’s stock valued at $3,834,000 after buying an additional 477 shares in the last quarter. Matrix Asset Advisors Inc. NY boosted its holdings in Visa by 16.9% in the 2nd quarter. Matrix Asset Advisors Inc. NY now owns 1,133 shares of the credit-card processor’s stock worth $402,000 after buying an additional 164 shares during the period. Finally, Schnieders Capital Management LLC. grew its stake in Visa by 13.8% in the 2nd quarter. Schnieders Capital Management LLC. now owns 18,367 shares of the credit-card processor’s stock valued at $6,521,000 after buying an additional 2,230 shares in the last quarter. Institutional investors own 82.15% of the company’s stock.

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.