Visa (NYSE:V) Stock Price Down 1.1% - Should You Sell?

Key Points

• Visa's stock price decreased by 1.1%, trading last at $335.09, with a notable drop in trading volume by 17% compared to its average session.
• Wall Street analysts have mixed reviews, with most ratings ranging from "Buy" to "Hold," and an average target price of $385.96.
• The company reported earnings of $2.98 per share for the last quarter, surpassing estimates, with revenues increasing 14.3% year-over-year to $10.17 billion.

Visa Inc. (NYSE:V - Get Free Report) fell 1.1% during mid-day trading on Thursday . The stock traded as low as $334.51 and last traded at $335.09. 5,387,738 shares changed hands during trading, a decline of 17% from the average session volume of 6,478,164 shares. The stock had previously closed at $338.68.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on V shares. Raymond James Financial restated an "outperform" rating on shares of Visa in a report on Wednesday, July 30th. Barclays restated an "overweight" rating and set a $408.00 price objective (up from $396.00) on shares of Visa in a research report on Thursday, July 31st. The Goldman Sachs Group initiated coverage on shares of Visa in a research note on Monday, June 2nd. They issued a "neutral" rating for the company. Erste Group Bank lowered Visa from a "buy" rating to a "hold" rating in a research note on Monday. Finally, UBS Group restated a "buy" rating and set a $415.00 price objective (up from $405.00) on shares of Visa in a report on Wednesday, July 30th. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $385.96.

Visa Trading Down 1.1%

The firm has a market capitalization of $614.15 billion, a price-to-earnings ratio of 32.72, a P/E/G ratio of 2.25 and a beta of 0.92. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 0.52. The firm's 50-day moving average is $345.19 and its 200 day moving average is $346.27.

Visa (NYSE:V - Get Free Report) last released its quarterly earnings data on Tuesday, July 29th. The credit-card processor reported $2.98 earnings per share for the quarter, beating the consensus estimate of $2.85 by $0.13. The company had revenue of $10.17 billion during 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%. Visa's revenue for the quarter was up 14.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.42 EPS. On average, equities analysts predict that Visa Inc. will post 11.3 earnings per share for the current fiscal year.

Visa Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 2nd. Stockholders of record on Tuesday, August 12th were given a dividend of $0.59 per share. The ex-dividend date was Tuesday, August 12th. This represents a $2.36 annualized dividend and a dividend yield of 0.7%. Visa's dividend payout ratio is currently 23.05%.

Insider Activity at Visa

In other Visa news, CEO Ryan Mcinerney sold 8,630 shares of the stock in a transaction that occurred 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 transaction, the chief executive officer directly owned 537 shares in the company, valued at $190,001.34. This trade represents a 94.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, General Counsel Julie B. Rottenberg sold 2,027 shares of the stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $344.02, for a total transaction of $697,328.54. Following the transaction, the general counsel owned 11,925 shares in the company, valued at $4,102,438.50. The trade was a 14.53% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.13% of the stock is currently owned by corporate insiders.

Institutional Trading of Visa

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Norges Bank bought a new position in Visa in the second quarter worth $7,034,939,000. GAMMA Investing LLC increased its holdings in Visa by 38,416.3% in the 1st 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. Nuveen LLC bought a new stake in Visa in the 1st quarter worth about $3,518,533,000. TCI Fund Management Ltd. increased its holdings in Visa by 14.6% in the 2nd quarter. TCI Fund Management Ltd. now owns 19,067,558 shares of the credit-card processor's stock worth $6,769,936,000 after buying an additional 2,429,996 shares in the last quarter. Finally, Corient Private Wealth LLC increased its holdings in Visa by 110.4% in the 2nd quarter. Corient Private Wealth LLC now owns 3,954,937 shares of the credit-card processor's stock worth $1,396,930,000 after buying an additional 2,075,289 shares in the last quarter. Hedge funds and other institutional investors own 82.15% of the company's stock.

Visa Company Profile

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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