Visa (NYSE:V) Stock Price Down 3.1% - Here's What Happened

Key Points

• Visa's stock price experienced a decline of 3.1% on Thursday, falling to $335.01 from a previous close of $345.69, with approximately 6.23 million shares traded.
• Analysts remain largely optimistic, with numerous ratings including Barclays' "overweight" and UBS's "buy" with a price target increase to $415.00, while the consensus target price is set at $389.00.
• Visa's recent quarterly results showcased a 14.3% increase in revenue year-over-year, reporting $2.98 EPS which exceeded analyst expectations of $2.85.

Visa Inc. (NYSE:V - Get Free Report)'s share price dropped 3.1% on Thursday . The stock traded as low as $334.17 and last traded at $335.01. Approximately 6,225,685 shares traded hands during trading, a decline of 3% from the average daily volume of 6,431,794 shares. The stock had previously closed at $345.69.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the stock. Barclays reiterated an "overweight" rating and issued a $408.00 price target (up from $396.00) on shares of Visa in a report on Thursday, July 31st. Truist Financial dropped their price target on shares of Visa from $400.00 to $397.00 and set a "buy" rating for the company in a research note on Thursday, July 17th. Raymond James Financial reaffirmed an "outperform" rating on shares of Visa in a research note on Wednesday, July 30th. UBS Group reissued a "buy" rating and issued a $415.00 price objective (up from $405.00) on shares of Visa in a research report on Wednesday, July 30th. Finally, Oppenheimer boosted their price objective on shares of Visa from $390.00 to $391.00 and gave the company an "outperform" rating in a research report on Wednesday, July 2nd. One analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $389.00.

Visa Price Performance

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 firm has a market cap of $614.00 billion, a price-to-earnings ratio of 32.72, a price-to-earnings-growth ratio of 2.06 and a beta of 0.90. The stock's 50 day simple moving average is $344.14 and its 200-day simple moving average is $346.97.

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. Equities research analysts anticipate that Visa Inc. will post 11.3 EPS for the current fiscal year.

Visa Dividend Announcement

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

Insider Buying and Selling at Visa

In other news, CEO Ryan Mcinerney sold 10,485 shares of the firm's stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $342.30, for a total value of $3,589,015.50. Following the transaction, the chief executive officer directly owned 537 shares of the company's stock, valued at approximately $183,815.10. This trade represents a 95.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, General Counsel Julie B. Rottenberg sold 2,027 shares of the firm's stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $344.02, for a total transaction of $697,328.54. Following the completion of the transaction, the general counsel directly owned 11,925 shares in the company, valued at approximately $4,102,438.50. This represents 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 company insiders.

Institutional Investors Weigh In On Visa

A number of institutional investors have recently made changes to their positions in V. Hoese & Co LLP grew its holdings in shares of Visa by 75.0% in the third quarter. Hoese & Co LLP now owns 175 shares of the credit-card processor's stock valued at $60,000 after purchasing an additional 75 shares in the last quarter. Bill Few Associates Inc. lifted its stake in Visa by 3.0% in the third quarter. Bill Few Associates Inc. now owns 4,947 shares of the credit-card processor's stock worth $1,689,000 after acquiring an additional 143 shares during the last quarter. Willner & Heller LLC lifted its position in shares of Visa by 0.8% during the 3rd quarter. Willner & Heller LLC now owns 3,770 shares of the credit-card processor's stock worth $1,287,000 after buying an additional 31 shares during the last quarter. Carnegie Investment Counsel lifted its position in shares of Visa by 0.6% during the 3rd quarter. Carnegie Investment Counsel now owns 182,032 shares of the credit-card processor's stock worth $62,142,000 after buying an additional 1,105 shares during the last quarter. Finally, LeConte Wealth Management LLC lifted its position in shares of Visa by 8.6% during the 3rd quarter. LeConte Wealth Management LLC now owns 1,725 shares of the credit-card processor's stock worth $589,000 after buying an additional 137 shares during the last quarter. 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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