Visa (NYSE:V) Announces Earnings Results

Key Points

• Visa reported earnings of $2.98 per share, surpassing analysts' expectations by $0.14, driven by a net margin of 52.86%.
• The company announced a quarterly dividend of $0.59, with an annualized yield of 0.67% and a payout ratio of 23.72%.
• Multiple analysts upgraded their price targets for Visa, with the average target now set at $375.52, reflecting a consensus rating of "Moderate Buy."

Visa (NYSE:V - Get Free Report) released its quarterly earnings results on Tuesday. The credit-card processor reported $2.98 earnings per share for the quarter, topping the consensus estimate of $2.85 by $0.13, Zacks reports. Visa had a return on equity of 56.28% and a net margin of 52.86%. The company had revenue of $10.17 billion during the quarter, compared to the consensus estimate of $9.82 billion. During the same quarter last year, the business posted $2.42 earnings per share. Visa's revenue was up 14.3% compared to the same quarter last year.

Visa Stock Down 1.0%

Visa stock opened at $351.92 on Wednesday. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.08 and a quick ratio of 1.08. Visa has a fifty-two week low of $254.51 and a fifty-two week high of $375.51. The firm has a fifty day moving average price of $355.76 and a two-hundred day moving average price of $345.83. The firm has a market cap of $649.35 billion, a price-to-earnings ratio of 35.37, a P/E/G ratio of 2.40 and a beta of 0.92.

Visa Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 2nd. Investors of record on Tuesday, August 12th will be issued a dividend of $0.59 per share. This represents a $2.36 annualized dividend and a dividend yield of 0.67%. Visa's dividend payout ratio is currently 23.72%.

Insider Transactions at Visa

In related news, CEO Ryan Mcinerney sold 8,630 shares of the company's stock in a transaction on Tuesday, July 1st. The shares were sold at an average price of $353.82, for a total transaction of $3,053,466.60. Following the completion of 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, General Counsel Julie B. Rottenberg sold 2,575 shares of the business's stock in a transaction dated Thursday, May 1st. The shares were sold at an average price of $345.58, for a total value of $889,868.50. Following the transaction, the general counsel owned 11,925 shares in the company, valued at $4,121,041.50. This represents a 17.76% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 101,108 shares of company stock worth $36,771,200. Company insiders own 0.13% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Revolve Wealth Partners LLC boosted its holdings in Visa by 68.9% during the fourth quarter. Revolve Wealth Partners LLC now owns 11,811 shares of the credit-card processor's stock worth $3,733,000 after buying an additional 4,817 shares during the last quarter. Brighton Jones LLC lifted its holdings in shares of Visa by 50.1% in the fourth quarter. Brighton Jones LLC now owns 20,635 shares of the credit-card processor's stock valued at $6,522,000 after purchasing an additional 6,883 shares in the last quarter. Finally, Nicholas Hoffman & Company LLC. boosted its position in shares of Visa by 4.6% during the first quarter. Nicholas Hoffman & Company LLC. now owns 10,941 shares of the credit-card processor's stock worth $3,834,000 after buying an additional 477 shares during the period. Institutional investors own 82.15% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on V shares. Wall Street Zen raised shares of Visa from a "hold" rating to a "buy" rating in a research note on Monday, May 12th. Truist Financial decreased their target price on shares of Visa from $400.00 to $397.00 and set a "buy" rating for the company in a research note on Thursday, July 17th. BMO Capital Markets raised their price objective on Visa from $370.00 to $380.00 and gave the company an "outperform" rating in a research note on Wednesday, April 30th. William Blair reissued an "outperform" rating on shares of Visa in a research report on Wednesday, April 30th. Finally, Citigroup initiated coverage on shares of Visa in a research note on Monday, June 2nd. They issued a "buy" rating for the company. Five equities research analysts have rated the stock with a hold rating, twenty-three have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, Visa currently has an average rating of "Moderate Buy" and an average target price of $375.52.

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.