Visa (NYSE:V) Stock Price Down 1.8% - Here's Why

Key Points

• Shares fell 1.8% on Monday, trading as low as $337.32 and last at $343.32, with volume rising about 83% to 13.23 million shares versus an average of 7.23 million.
• Wall Street remains broadly bullish with a consensus "Buy" rating and a $402.52** target (5 Strong Buy, 19 Buy, 4 Hold among covering analysts).
• Visa slightly beat quarterly EPS estimates ($2.98 vs. $2.97) and reported revenue of $10.72 billion (+11.5% YoY), and it raised the quarterly dividend to $0.67 (annualized $2.68, ~0.8% yield).

Visa Inc. (NYSE:V - Get Free Report)'s stock price fell 1.8% on Monday . The company traded as low as $337.32 and last traded at $343.3230. 13,226,466 shares were traded during trading, an increase of 83% from the average session volume of 7,226,409 shares. The stock had previously closed at $349.77.

Wall Street Analysts Forecast Growth

V has been the subject of several research reports. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Visa in a report on Wednesday, October 8th. UBS Group set a $425.00 target price on shares of Visa and gave the stock a "buy" rating in a report on Wednesday, October 29th. Evercore ISI set a $380.00 target price on Visa in a report on Friday, December 12th. Macquarie cut their price target on Visa from $425.00 to $410.00 and set an "outperform" rating on the stock in a report on Wednesday, October 29th. Finally, Erste Group Bank lowered Visa from a "buy" rating to a "hold" rating in a research report on Monday, September 22nd. Five equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus target price of $402.52.

Visa Price Performance

The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.08 and a current ratio of 1.08. The firm has a market capitalization of $625.45 billion, a P/E ratio of 33.63, a price-to-earnings-growth ratio of 2.06 and a beta of 0.81. The business has a fifty day moving average of $340.22 and a 200-day moving average of $344.11.

Visa (NYSE:V - Get Free Report) last announced its quarterly earnings results on Tuesday, October 28th. The credit-card processor reported $2.98 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.97 by $0.01. Visa had a return on equity of 60.31% and a net margin of 50.15%.The company had revenue of $10.72 billion during the quarter, compared to analyst estimates of $10.60 billion. During the same quarter in the previous year, the firm posted $2.71 EPS. The firm's quarterly revenue was up 11.5% on a year-over-year basis. On average, sell-side analysts forecast that Visa Inc. will post 11.3 EPS for the current fiscal year.

Visa Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, December 1st. Investors of record on Wednesday, November 12th were given a $0.67 dividend. The ex-dividend date was Wednesday, November 12th. This represents a $2.68 dividend on an annualized basis and a yield of 0.8%. This is a boost from Visa's previous quarterly dividend of $0.59. Visa's payout ratio is currently 26.25%.

Insider Buying and Selling at Visa

In other Visa news, insider Paul D. Fabara sold 2,172 shares of the business's stock in a transaction dated Friday, November 21st. The shares were sold at an average price of $325.93, for a total transaction of $707,919.96. Following the sale, the insider directly owned 26,413 shares in the company, valued at approximately $8,608,789.09. The trade was a 7.60% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Lloyd Carney sold 900 shares of the company's stock in a transaction that occurred on Tuesday, November 4th. The stock was sold at an average price of $336.48, for a total transaction of $302,832.00. Following the completion of the sale, the director directly owned 2,468 shares of the company's stock, valued at approximately $830,432.64. This represents a 26.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 24,042 shares of company stock valued at $8,247,289. Company insiders own 0.12% of the company's stock.

Institutional Trading of Visa

Several institutional investors and hedge funds have recently added to or reduced their stakes in V. Vanguard Group Inc. grew its holdings in shares of Visa by 0.9% in the 2nd quarter. Vanguard Group Inc. now owns 162,544,006 shares of the credit-card processor's stock worth $57,711,249,000 after acquiring an additional 1,461,575 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of Visa by 2.5% in the 2nd quarter. Geode Capital Management LLC now owns 43,096,802 shares of the credit-card processor's stock valued at $15,253,245,000 after purchasing an additional 1,067,631 shares during the period. Capital World Investors boosted its position in shares of Visa by 0.8% in the 3rd quarter. Capital World Investors now owns 24,792,246 shares of the credit-card processor's stock valued at $8,463,484,000 after purchasing an additional 193,288 shares during the period. Norges Bank purchased a new position in Visa in the 2nd quarter worth about $7,034,939,000. Finally, TCI Fund Management Ltd. raised its holdings in Visa by 14.6% during 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 during the period. 82.15% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.