Visa Inc. (NYSE:V) Stock Has Consensus Price Target of $426.12

Key Points

• Analysts remain bullish on Visa: Thirty-seven research firms give the stock a consensus “Buy” rating, with an average 12-month price target of $426.12. Recent targets range from $406 to $438.
• Strong financial performance supports the outlook: Visa reported quarterly earnings of $3.32 per share, exceeding estimates, while revenue rose 14.4% year over year to $11.63 billion. The company also maintains a quarterly dividend of $0.67 per share.
• Shares are trading near record highs, but insiders have been selling: Visa opened at $403.05 versus a 12-month high of $404.74, while institutional investors own 82.15% of outstanding shares. Company insiders sold 78,792 shares worth approximately $28.9 million during the quarter.

Shares of Visa Inc. (NYSE:V - Get Free Report) have been assigned an average recommendation of "Buy" from the thirty-seven research firms that are covering the firm, Marketbeat Ratings reports. Thirty-four equities research analysts have rated the stock with a buy rating and three have assigned a strong buy rating to the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $426.12.

Several research analysts recently commented on the company. Barclays started coverage on Visa in a research note on Tuesday, July 7th. They issued an "overweight" rating and a $420.00 price target on the stock. Argus raised their price objective on Visa from $396.00 to $420.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Truist Financial set a $406.00 price objective on Visa and gave the company a "buy" rating in a research note on Wednesday, August 5th. The Goldman Sachs Group lifted their price objective on Visa from $420.00 to $438.00 and gave the stock a "buy" rating in a report on Wednesday, July 29th. Finally, Piper Sandler reaffirmed an "overweight" rating and issued a $430.00 target price (up from $394.00) on shares of Visa in a research report on Wednesday, July 29th.

Insider Transactions at Visa

In related news, General Counsel Julie B. Rottenberg sold 1,867 shares of the company's stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $368.34, for a total value of $687,690.78. Following the sale, the general counsel directly owned 18,404 shares of the company's stock, valued at $6,778,929.36. This represents a 9.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ryan Mcinerney sold 5,875 shares of the company's stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $358.81, for a total transaction of $2,108,008.75. Following the completion of the sale, the chief executive officer directly owned 15,174 shares in the company, valued at $5,444,582.94. This represents a 27.91% 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. Over the last quarter, insiders sold 78,792 shares of company stock valued at $28,863,319. 0.12% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Nixon Peabody Trust Co. lifted its position in Visa by 58.1% in the 1st quarter. Nixon Peabody Trust Co. now owns 4,201 shares of the credit-card processor's stock valued at $1,270,000 after purchasing an additional 1,543 shares during the last quarter. Vega Investment Solutions acquired a new position in Visa during the 2nd quarter valued at about $829,000. Beacon Financial Group grew its position in Visa by 83.9% in the 1st quarter. Beacon Financial Group now owns 22,501 shares of the credit-card processor's stock worth $6,801,000 after purchasing an additional 10,267 shares during the last quarter. XXEC Inc. grew its position in Visa by 153,118.8% in the 2nd quarter. XXEC Inc. now owns 186,260,448 shares of the credit-card processor's stock worth $63,904,097,000 after purchasing an additional 186,138,883 shares during the last quarter. Finally, The Manufacturers Life Insurance Company grew its position in Visa by 23.5% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 2,343,195 shares of the credit-card processor's stock worth $803,925,000 after purchasing an additional 445,775 shares during the last quarter. 82.15% of the stock is owned by institutional investors and hedge funds.

Visa Stock Performance

Shares of V stock opened at $403.05 on Friday. The company has a debt-to-equity ratio of 0.60, a current ratio of 0.99 and a quick ratio of 0.99. The company's fifty day moving average price is $372.73 and its two-hundred day moving average price is $346.29. The firm has a market capitalization of $719.21 billion, a P/E ratio of 34.27, a P/E/G ratio of 1.89 and a beta of 0.77. Visa has a 12 month low of $293.89 and a 12 month high of $404.74.

Visa (NYSE:V - Get Free Report) last announced its earnings results on Tuesday, July 28th. The credit-card processor reported $3.32 earnings per share for the quarter, beating the consensus estimate of $3.23 by $0.09. Visa had a return on equity of 67.68% and a net margin of 50.78%. The company had revenue of $11.63 billion during the quarter, compared to the consensus estimate of $11.40 billion. During the same period last year, the firm earned $2.98 earnings per share. The company's revenue was up 14.4% on a year-over-year basis. On average, research analysts anticipate that Visa will post 13.22 earnings per share for the current fiscal year.

Visa Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 11th were given a dividend of $0.67 per share. The ex-dividend date of this dividend was Tuesday, August 11th. This represents a $2.68 dividend on an annualized basis and a dividend yield of 0.7%. Visa's dividend payout ratio (DPR) is presently 22.79%.

Key Stories Impacting Visa

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Stablecoin payments move into commercial use: Visa Direct has begun rolling out stablecoin-enabled prefunding for businesses conducting cross-border payments. Inyo Global is the first enabler to launch the capability for eligible clients and partners, potentially improving payment speed, liquidity management and Visa’s relevance in digital money movement. Visa Direct Accelerates Cross-Border Money Movement With Stablecoin Prefunding
• Positive Sentiment: Investor rotation supports valuation: Visa and Mastercard are among large-cap stocks reaching records as investors rotate away from chip and artificial-intelligence shares. This shift has increased demand for defensive, cash-generative companies ahead of earnings season. Coca-Cola, Visa and Mastercard Hit Records as Investors Rotate Out of Chip Stocks
• Positive Sentiment: Technical and analyst support: Visa recently broke out into a reported buy zone, while an analyst upgrade has added to bullish sentiment. The stock’s momentum is notable given its premium valuation and position near its annual high. Visa Shares Up on Analyst Upgrade
• Positive Sentiment: Payments ecosystem expansion: Barclaycard Payments is integrating Visa Unified Checkout in the United Kingdom, allowing merchants to accept cards, Click to Pay and digital wallets. Transferra also launched Visa cards for business and private clients, supporting additional card issuance and transaction volume. Barclaycard Payments Integrates Visa Unified Checkout in UK
• Neutral Sentiment: Consumer spending remains resilient: Analysts continue to view Visa as a beneficiary of stock-market-supported consumer spending and resilient earnings, but the outlook is tempered by rising credit-card delinquencies that could eventually pressure payment volumes or consumer credit conditions. 3 Stocks to Watch as Wall Street Wealth Fuels Consumer Spending

About Visa

Visa Inc NYSE: V is a global payments technology company that facilitates electronic payments between consumers, businesses, financial institutions and governments. Through its VisaNet network, the company authorizes, clears and settles transactions made with Visa-branded credit, debit and prepaid cards, while generally not issuing cards, extending credit or setting cardholder account terms.

Visa provides payment products and services for consumer, commercial and government payments, as well as digital commerce and money movement.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.