UBS Group Reaffirms "Buy" Rating for Visa (NYSE:V)

Key Points

• UBS Group has raised its price target for Visa's stock from $405.00 to $415.00, indicating a potential upside of 16.95% from the stock's previous close, while maintaining a "buy" rating.
• Visa's quarterly earnings exceeded expectations, reporting $2.98 earnings per share, surpassing the consensus estimate by $0.13, and a revenue of $10.17 billion, up 14.3% compared to last year.
• Insider selling activity includes CEO Ryan Mcinerney and Paul D. Fabara, with significant reductions in their positions, suggesting concerns among insiders regarding the stock's performance.

Visa (NYSE:V - Get Free Report)'s stock had its "buy" rating reiterated by investment analysts at UBS Group in a research note issued on Wednesday, Marketbeat reports. They presently have a $415.00 price objective on the credit-card processor's stock, up from their prior price objective of $405.00. UBS Group's price target indicates a potential upside of 22.49% from the company's current price.

Several other research analysts also recently issued reports on the company. Wall Street Zen raised Visa from a "hold" rating to a "buy" rating in a report on Monday, May 12th. Macquarie cut their price target on Visa from $400.00 to $380.00 and set an "outperform" rating on the stock in a research note on Wednesday, April 30th. Deutsche Bank Aktiengesellschaft assumed coverage on Visa in a research report on Thursday, July 17th. They issued a "buy" rating and a $410.00 price objective for the company. Truist Financial reduced their target price on shares of Visa from $400.00 to $397.00 and set a "buy" rating on the stock in a research note on Thursday, July 17th. Finally, William Blair reissued an "outperform" rating on shares of Visa in a research note on Wednesday, April 30th. Five analysts have rated the stock with a hold rating, twenty-three have given a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $380.84.

Visa Price Performance

Shares of V stock opened at $338.81 on Wednesday. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.12 and a quick ratio of 1.08. The stock's fifty day simple moving average is $355.06 and its 200 day simple moving average is $346.34. Visa has a one year low of $254.51 and a one year high of $375.51. The firm has a market cap of $625.16 billion, a price-to-earnings ratio of 33.09, a P/E/G ratio of 2.30 and a beta of 0.94.

Visa (NYSE:V - Get Free Report) last released its quarterly earnings results on Tuesday, July 29th. The credit-card processor reported $2.98 EPS for the quarter, beating analysts' consensus estimates of $2.85 by $0.13. The firm had revenue of $10.17 billion for the quarter, compared to analyst estimates of $9.82 billion. Visa had a net margin of 52.16% and a return on equity of 58.93%. The company's revenue for the quarter was up 14.3% compared to the same quarter last year. During the same period in the previous year, the business earned $2.42 earnings per share. On average, analysts expect that Visa will post 11.3 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Paul D. Fabara sold 46,214 shares of the stock in a transaction on Thursday, June 5th. The stock was sold at an average price of $370.00, for a total value of $17,099,180.00. Following the completion of the sale, the insider directly owned 26,413 shares of the company's stock, valued at approximately $9,772,810. This represents a 63.63% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Ryan Mcinerney sold 8,630 shares of Visa stock in a transaction on Tuesday, July 1st. The stock was sold at an average price of $353.82, for a total transaction of $3,053,466.60. Following the transaction, the chief executive officer directly owned 537 shares in the company, valued at $190,001.34. This represents a 94.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 89,913 shares of company stock worth $32,902,432. 0.13% of the stock is owned by insiders.

Institutional Trading of Visa

A number of large investors have recently added to or reduced their stakes in V. Vanguard Group Inc. lifted its position in shares of Visa by 1.1% during the first quarter. Vanguard Group Inc. now owns 161,082,431 shares of the credit-card processor's stock worth $56,452,949,000 after acquiring an additional 1,677,088 shares in the last quarter. Capital International Investors boosted its stake in Visa by 3.8% in the 4th quarter. Capital International Investors now owns 23,816,573 shares of the credit-card processor's stock worth $7,526,660,000 after purchasing an additional 866,596 shares during the period. Capital World Investors grew its holdings in Visa by 1.0% during the 4th quarter. Capital World Investors now owns 23,277,622 shares of the credit-card processor's stock valued at $7,356,614,000 after buying an additional 241,057 shares in the last quarter. Northern Trust Corp increased its position in shares of Visa by 4.0% during the first quarter. Northern Trust Corp now owns 18,987,013 shares of the credit-card processor's stock valued at $6,654,189,000 after buying an additional 726,299 shares during the period. Finally, GAMMA Investing LLC lifted its holdings in shares of Visa by 38,416.3% in the first quarter. GAMMA Investing LLC now owns 14,761,375 shares of the credit-card processor's stock worth $5,173,271,000 after buying an additional 14,723,050 shares in the last quarter. Hedge funds and other institutional investors own 82.15% of the company's stock.

About Visa

Visa Inc operates as a payment technology company in the United States and internationally. The company operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. It also offers credit, debit, and prepaid card products; tap to pay, tokenization, and click to pay services; Visa Direct, a solution that facilitates the delivery of funds to eligible cards, deposit accounts, and digital wallets; Visa B2B Connect, a multilateral business-to-business cross-border payments network; Visa Cross-Border Solution, a cross-border consumer payments solution; and Visa DPS that provides a range of value-added services, including fraud mitigation, dispute management, data analytics, campaign management, a suite of digital solutions, and contact center services.