Visa (NYSE:V) Stock Price Down 1.3% - Here's Why

Key Points

• Visa shares fell 1.3% in Tuesday trading, ending near $355.94 after trading as low as $354.69, with volume below the daily average.
• Despite the dip, Wall Street remains broadly bullish: several analysts reiterated or initiated overweight/buy ratings, and Visa’s consensus target price is about $398.36.
• The company recently posted strong quarterly results, beating EPS and revenue estimates, and also authorized a $20 billion share buyback while paying a quarterly dividend of $0.67 per share.

Visa Inc. (NYSE:V - Get Free Report)'s stock price traded down 1.3% during mid-day trading on Tuesday . The stock traded as low as $354.69 and last traded at $355.9370. 5,974,387 shares traded hands during trading, a decline of 26% from the average session volume of 8,038,257 shares. The stock had previously closed at $360.57.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on V shares. Oppenheimer reaffirmed an "outperform" rating and set a $403.00 target price (up from $391.00) on shares of Visa in a research note on Wednesday, April 29th. Piper Sandler assumed coverage on Visa in a report on Monday, June 29th. They set an "overweight" rating and a $394.00 price objective for the company. Evercore set a $350.00 price objective on Visa in a research report on Wednesday, April 29th. Cantor Fitzgerald reiterated an "overweight" rating and set a $400.00 target price on shares of Visa in a research report on Wednesday, April 29th. Finally, Barclays assumed coverage on shares of Visa in a report on Tuesday, July 7th. They issued an "overweight" rating and a $420.00 price target on the stock. Seven analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Buy" and an average target price of $398.36.

Visa Stock Down 1.3%

The company has a debt-to-equity ratio of 0.64, a current ratio of 1.09 and a quick ratio of 1.09. The stock has a market cap of $638.47 billion, a PE ratio of 31.00, a price-to-earnings-growth ratio of 1.91 and a beta of 0.75. The business has a fifty day moving average of $335.15 and a 200-day moving average of $325.05.

Visa (NYSE:V - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The credit-card processor reported $3.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.10 by $0.21. The company had revenue of $11.23 billion for the quarter, compared to analysts' expectations of $10.75 billion. Visa had a return on equity of 65.00% and a net margin of 51.68%.Visa's revenue was up 17.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.76 earnings per share. Equities research analysts anticipate that Visa Inc. will post 13.11 earnings per share for the current year.

Visa Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 1st. Stockholders of record on Tuesday, May 12th were given a dividend of $0.67 per share. The ex-dividend date of this dividend was Tuesday, May 12th. This represents a $2.68 dividend on an annualized basis and a dividend yield of 0.8%. Visa's dividend payout ratio is presently 23.34%.

Visa declared that its Board of Directors has approved a stock repurchase plan on Tuesday, April 28th that permits the company to buyback $20.00 billion in outstanding shares. This buyback authorization permits the credit-card processor to reacquire up to 3.6% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's management believes its stock is undervalued.

Insider Activity

In related news, CFO Chris Suh sold 10,639 shares of Visa stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $324.81, for a total value of $3,455,653.59. Following the completion of the sale, the chief financial officer directly owned 9,872 shares in the company, valued at $3,206,524.32. The trade was a 51.87% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO Ryan Mcinerney sold 31,455 shares of the company's stock in a transaction dated Wednesday, April 29th. The stock was sold at an average price of $340.14, for a total transaction of $10,699,103.70. Following the completion of the sale, the chief executive officer directly owned 15,174 shares of the company's stock, valued at approximately $5,161,284.36. This trade represents a 67.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 75,581 shares of company stock worth $25,627,975. Company insiders own 0.12% of the company's stock.

Institutional Investors Weigh In On Visa

Several hedge funds have recently modified their holdings of V. Clayton Financial Group LLC increased its holdings in shares of Visa by 446.2% in the 4th quarter. Clayton Financial Group LLC now owns 71 shares of the credit-card processor's stock valued at $25,000 after acquiring an additional 58 shares during the period. PayPay Securities Corp lifted its stake in shares of Visa by 102.7% during the 4th quarter. PayPay Securities Corp now owns 75 shares of the credit-card processor's stock worth $26,000 after purchasing an additional 38 shares during the last quarter. Cresta Advisors Ltd. purchased a new stake in shares of Visa during the 4th quarter worth $26,000. Parvin Asset Management LLC boosted its position in Visa by 200.0% during the third quarter. Parvin Asset Management LLC now owns 75 shares of the credit-card processor's stock valued at $26,000 after purchasing an additional 50 shares in the last quarter. Finally, Dorato Capital Management bought a new stake in Visa during the fourth quarter valued at about $30,000. Hedge funds and other institutional investors own 82.15% of the company's stock.

About Visa

Visa Inc is a global payments technology company that facilitates electronic funds transfers and digital commerce by connecting consumers, merchants, financial institutions and governments. The firm operates one of the world's largest payment networks, providing processing, authorization, clearing and settlement services for credit, debit and prepaid card transactions. Visa's network-based model enables partner banks and other issuers to offer branded payment products while Visa focuses on the infrastructure, standards and technologies that move money securely and efficiently around the world.

Visa's product and service portfolio includes card-based payment products for consumers and businesses, real-time push-payment capabilities, tokenization and authentication services, fraud and risk-management tools, data analytics and APIs for fintech and merchant integration.

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