Visa (NYSE:V) Trading Down 1.2% - Here's What Happened

Key Points

• Visa shares fell 1.2% to approximately $371.08 in midday trading, with volume slightly below the daily average.
• Analysts remain broadly bullish, with an average rating of “Buy” and a consensus price target of $416.62; several firms recently raised their targets to between $420 and $440.
• Visa reported stronger-than-expected quarterly results, including $3.32 in EPS and $11.63 billion in revenue, while revenue rose 14.4% year over year. The company also maintains a quarterly dividend of $0.67 per share, though insiders have sold more than 106,000 shares over the past 90 days.

Visa Inc. (NYSE:V - Get Free Report) shares traded down 1.2% on Wednesday . The stock traded as low as $368.12 and last traded at $371.0770. Approximately 7,197,567 shares changed hands during mid-day trading, a decline of 6% from the average daily volume of 7,678,195 shares. The stock had previously closed at $375.62.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on V. Citigroup restated a "buy" rating and issued a $440.00 target price (up from $400.00) on shares of Visa in a research note on Wednesday, July 29th. Piper Sandler reissued an "overweight" rating and issued a $430.00 price objective (up from $394.00) on shares of Visa in a report on Wednesday, July 29th. Clear Str upgraded Visa to a "strong-buy" rating in a research note on Thursday, July 16th. UBS Group reaffirmed a "buy" rating and set a $420.00 target price (up from $410.00) on shares of Visa in a report on Wednesday, July 29th. Finally, Barclays assumed coverage on Visa in a research report on Tuesday, July 7th. They issued an "overweight" rating and a $420.00 target price for the company. Seven analysts have rated the stock with a Strong Buy rating and twenty-four have given a Buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Buy" and a consensus target price of $416.62.

Visa Stock Performance

The stock's 50-day moving average price is $366.28 and its 200-day moving average price is $336.18. The company has a current ratio of 0.99, a quick ratio of 0.99 and a debt-to-equity ratio of 0.60. The company has a market capitalization of $662.16 billion, a P/E ratio of 31.55, a P/E/G ratio of 2.01 and a beta of 0.76.

Visa (NYSE:V - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The credit-card processor reported $3.32 earnings per share for the quarter, beating analysts' consensus estimates of $3.23 by $0.09. Visa had a net margin of 50.78% and a return on equity of 67.68%. The business had revenue of $11.63 billion during the quarter, compared to the consensus estimate of $11.40 billion. During the same quarter in the prior year, the firm earned $2.98 EPS. The company's revenue for the quarter was up 14.4% compared to the same quarter last year. As a group, equities analysts expect that Visa Inc. will post 13.16 EPS for the current year.

Visa Dividend Announcement

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

Insider Transactions at Visa

In related news, CEO Ryan Mcinerney sold 5,875 shares of the firm's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $379.65, for a total value of $2,230,443.75. Following the sale, the chief executive officer owned 15,174 shares of the company's stock, valued at approximately $5,760,809.10. This trade represents a 27.91% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Tullier Mahon sold 57,272 shares of the business's stock in a transaction that occurred on Thursday, July 30th. The shares were sold at an average price of $364.97, for a total value of $20,902,561.84. Following the transaction, the insider owned 49,662 shares of the company's stock, valued at $18,125,140.14. This represents a 53.56% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 106,404 shares of company stock worth $38,228,528. 0.12% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Visa

Hedge funds and other institutional investors have recently modified their holdings of the company. Philadelphia Investment Partners LLC acquired a new position in Visa during the 2nd quarter valued at about $29,000. Virtus Advisers LLC acquired a new stake in shares of Visa in the second quarter valued at approximately $33,000. RHL Group LLC bought a new stake in shares of Visa during the fourth quarter valued at approximately $34,000. Copos Capital S.a r.l. bought a new stake in shares of Visa during the fourth quarter valued at approximately $35,000. Finally, Robinswood Financial LLC acquired a new position in shares of Visa during the first quarter worth approximately $35,000. Institutional investors and hedge funds own 82.15% of the company's stock.

About Visa

Visa Inc is a global payments technology company that operates one of the world's largest electronic payment networks. The company connects consumers, businesses, financial institutions and governments, enabling transactions through credit, debit, prepaid and commercial payment products. Visa generally does not issue cards, extend credit or set consumer interest rates; instead, it provides the network, technology and services that support payments.

Visa's products and services include Visa-branded cards, digital payment solutions, tokenization, fraud prevention, risk management, data analytics and payment acceptance tools.

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