Visa (NYSE:V) Shares Down 1.6% - What's Next?

Key Points

• Visa's shares fell by 1.6% during mid-day trading, closing at $339.82, with a significant decline in trading volume of 62% compared to the average session volume.
• The company's recent quarterly earnings report showed a revenue of $10.17 billion and an earnings per share (EPS) of $2.98, both exceeding analysts' expectations.
• Visa announced a quarterly dividend of $0.59 per share, payable on September 2nd, with a current yield of 0.7% and a payout ratio of 23.05%.

Visa Inc. (NYSE:V - Get Free Report)'s share price traded down 1.6% during mid-day trading on Friday . The company traded as low as $338.80 and last traded at $339.82. 2,516,614 shares were traded during trading, a decline of 62% from the average session volume of 6,588,882 shares. The stock had previously closed at $345.47.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the stock. BMO Capital Markets lifted their target price on shares of Visa from $370.00 to $380.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 30th. Citigroup started coverage on shares of Visa in a report on Monday, June 2nd. They set a "buy" rating on the stock. Oppenheimer raised their target price on shares of Visa from $390.00 to $391.00 and gave the company an "outperform" rating in a research note on Wednesday, July 2nd. Jefferies Financial Group raised their target price on shares of Visa from $400.00 to $410.00 and gave the stock a "buy" rating in a report on Tuesday, May 27th. Finally, Raymond James Financial reissued an "outperform" rating on shares of Visa in a research report on Wednesday. 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 MarketBeat, Visa currently has a consensus rating of "Moderate Buy" and a consensus price target of $380.84.

Visa Price Performance

The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.08 and a current ratio of 1.12. The firm has a market capitalization of $626.79 billion, a P/E ratio of 33.17, a P/E/G ratio of 2.36 and a beta of 0.92. The stock's 50 day simple moving average is $355.36 and its 200 day simple moving average is $346.13.

Visa (NYSE:V - Get Free Report) last issued its quarterly 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. Visa had a net margin of 52.16% and a return on equity of 58.93%. The business had revenue of $10.17 billion for the quarter, compared to analyst estimates of $9.82 billion. During the same quarter in the prior year, the business posted $2.42 EPS. Visa's revenue for the quarter was up 14.3% compared to the same quarter last year. As a group, analysts expect that Visa Inc. will post 11.3 earnings per share for the current fiscal year.

Visa Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 2nd. Shareholders of record on Tuesday, August 12th will be paid a dividend of $0.59 per share. The ex-dividend date of this dividend is Tuesday, August 12th. This represents a $2.36 dividend on an annualized basis and a yield of 0.7%. Visa's payout ratio is 23.05%.

Insider Transactions at Visa

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

Institutional Investors Weigh In On Visa

A number of large investors have recently added to or reduced their stakes in V. Keystone Global Partners LLC purchased a new position in Visa in the first quarter valued at approximately $26,000. Family Legacy Financial Solutions LLC acquired a new stake in shares of Visa during the second quarter worth approximately $28,000. von Borstel & Associates Inc. acquired a new stake in shares of Visa during the first quarter worth approximately $27,000. Harbor Asset Planning Inc. acquired a new position in Visa in the second quarter worth $29,000. Finally, Cranbrook Wealth Management LLC boosted its holdings in Visa by 82.0% in the second quarter. Cranbrook Wealth Management LLC now owns 91 shares of the credit-card processor's stock worth $32,000 after purchasing an additional 41 shares during the period. 82.15% of the stock is 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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