Visa (NYSE:V) Shares Down 1.4% - Should You Sell?

Key Points

• Visa shares fell by 1.4%, trading last at $337.36, amidst a significant decline in trading volume, dropping to 1,850,332 shares from an average of 6,600,231 shares.
• Analysts have varied price targets for Visa, with a consensus target price of $380.84 and the majority rating it as a "Moderate Buy."
• The company recently announced a quarterly dividend of $0.59 per share, representing an annual yield of 0.7%.

Visa Inc. (NYSE:V - Get Free Report) dropped 1.4% during trading on Tuesday . The company traded as low as $335.55 and last traded at $337.36. Approximately 1,850,332 shares traded hands during trading, a decline of 72% from the average daily volume of 6,600,231 shares. The stock had previously closed at $342.15.

Analysts Set New Price Targets

V has been the topic of a number of recent analyst reports. UBS Group restated a "buy" rating and set a $415.00 price target (up previously from $405.00) on shares of Visa in a research note on Wednesday, July 30th. Piper Sandler upped their target price on shares of Visa from $383.00 to $384.00 and gave the stock an "overweight" rating in a report on Wednesday, April 30th. The Goldman Sachs Group initiated coverage on shares of Visa in a report on Monday, June 2nd. They issued a "neutral" rating for the company. Evercore ISI assumed coverage on shares of Visa in a report on Wednesday, April 9th. They issued an "in-line" rating and a $330.00 price objective for the company. Finally, Truist Financial decreased their target price on shares of Visa from $400.00 to $397.00 and set a "buy" rating on the stock in a research report on Thursday, July 17th. Five research 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. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $380.84.

Visa Stock Performance

The company has a market capitalization of $622.62 billion, a PE ratio of 32.93, a PEG ratio of 2.26 and a beta of 0.94. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.12 and a current ratio of 1.12. The company has a 50 day moving average price of $354.82 and a 200 day moving average price of $346.91.

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

Visa Dividend Announcement

The company also recently announced 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 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Tuesday, August 12th. Visa's payout ratio is presently 23.05%.

Insider Transactions at Visa

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

Institutional Investors Weigh In On Visa

A number of institutional investors have recently bought and sold shares of the business. Lakeridge Wealth Management LLC lifted its holdings in Visa by 5.7% in the 1st quarter. Lakeridge Wealth Management LLC now owns 1,507 shares of the credit-card processor's stock worth $528,000 after purchasing an additional 81 shares during the last quarter. Blue Rock Wealth Management LLC bought a new position in Visa in the fourth quarter valued at about $306,000. Aptus Capital Advisors LLC boosted its holdings in Visa by 19.8% during the fourth quarter. Aptus Capital Advisors LLC now owns 182,658 shares of the credit-card processor's stock worth $57,727,000 after buying an additional 30,185 shares during the last quarter. Eagle Strategies LLC raised its position in shares of Visa by 2.5% during the fourth quarter. Eagle Strategies LLC now owns 2,568 shares of the credit-card processor's stock worth $811,000 after purchasing an additional 63 shares during the period. Finally, Rafferty Asset Management LLC raised its position in shares of Visa by 7.7% during the fourth quarter. Rafferty Asset Management LLC now owns 610,517 shares of the credit-card processor's stock worth $192,948,000 after purchasing an additional 43,546 shares during the period. 82.15% of the stock is currently owned by institutional investors and hedge funds.

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.

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