Visa (NYSE:V) Trading 1.2% Higher - Here's Why

Key Points

• Visa's stock (NYSE:V) saw a 1.2% increase in trading on Monday, closing at $343.55, despite a significant drop in trading volume.
• Wall Street analysts remain optimistic about Visa, with a consensus rating of "Moderate Buy" and a price target averaging $380.84, following multiple upgrades from several brokerages.
• The company recently reported a quarterly EPS of $2.98, exceeding analysts' expectations, and announced a quarterly dividend of $0.59 per share to be paid on September 2nd.

Visa Inc. (NYSE:V - Get Free Report) traded up 1.2% during trading on Monday . The company traded as high as $343.38 and last traded at $343.55. 1,263,817 shares changed hands during mid-day trading, a decline of 81% from the average session volume of 6,593,922 shares. The stock had previously closed at $339.35.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on V. Truist Financial decreased their price objective on Visa from $400.00 to $397.00 and set a "buy" rating on the stock in a report on Thursday, July 17th. William Blair reaffirmed an "outperform" rating on shares of Visa in a report on Wednesday, April 30th. Raymond James Financial reissued an "outperform" rating on shares of Visa in a research report on Wednesday, July 30th. BMO Capital Markets boosted their target price on Visa from $370.00 to $380.00 and gave the company an "outperform" rating in a research report on Wednesday, April 30th. Finally, Macquarie boosted their target price on Visa from $380.00 to $425.00 and gave the company an "outperform" rating in a research report on Thursday. Five research analysts have rated the stock with a hold rating, twenty-three have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $380.84.

Visa Stock Performance

The stock has a market cap of $631.27 billion, a PE ratio of 33.41, a P/E/G ratio of 2.26 and a beta of 0.94. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 0.52. The stock has a 50-day moving average of $355.06 and a 200 day moving average of $346.75.

Visa (NYSE:V - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The credit-card processor reported $2.98 EPS for the quarter, topping analysts' consensus estimates of $2.85 by $0.13. Visa had a return on equity of 58.93% and a net margin of 52.16%. The firm had revenue of $10.17 billion for the quarter, compared to the consensus estimate of $9.82 billion. During the same quarter last year, the business posted $2.42 earnings per share. The firm's revenue was up 14.3% compared to the same quarter last year. Equities analysts predict that Visa Inc. will post 11.3 EPS for the current fiscal year.

Visa Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 2nd. Investors of record on Tuesday, August 12th will be issued a $0.59 dividend. This represents a $2.36 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Tuesday, August 12th. Visa's payout ratio is currently 23.05%.

Insider Buying and Selling at Visa

In related news, CEO Ryan Mcinerney sold 8,630 shares of the business's stock in a transaction on Tuesday, July 1st. The stock was sold at an average price of $353.82, for a total transaction of $3,053,466.60. Following the completion of the transaction, the chief executive officer directly owned 537 shares of the company's stock, valued at $190,001.34. The trade was a 94.14% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Paul D. Fabara sold 11,636 shares of the business's stock in a transaction on Wednesday, June 11th. The stock was sold at an average price of $375.00, for a total value of $4,363,500.00. Following the transaction, the insider directly owned 26,413 shares of the company's stock, valued at $9,904,875. The trade was a 30.58% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 89,913 shares of company stock worth $32,902,432 in the last quarter. Company insiders own 0.13% of the company's stock.

Institutional Trading of Visa

Institutional investors and hedge funds have recently made changes to their positions in the company. Brighton Jones LLC raised its stake in Visa by 50.1% during the 4th quarter. Brighton Jones LLC now owns 20,635 shares of the credit-card processor's stock valued at $6,522,000 after acquiring an additional 6,883 shares during the last quarter. Revolve Wealth Partners LLC increased its stake in Visa by 68.9% in the 4th quarter. Revolve Wealth Partners LLC now owns 11,811 shares of the credit-card processor's stock valued at $3,733,000 after purchasing an additional 4,817 shares in the last quarter. Oarsman Capital Inc. increased its stake in Visa by 1.9% in the 4th quarter. Oarsman Capital Inc. now owns 1,697 shares of the credit-card processor's stock valued at $536,000 after purchasing an additional 32 shares in the last quarter. Hurley Capital LLC purchased a new position in Visa in the 4th quarter valued at approximately $56,000. Finally, Quadrant Capital Group LLC increased its stake in Visa by 4.6% in the 4th quarter. Quadrant Capital Group LLC now owns 17,797 shares of the credit-card processor's stock valued at $5,624,000 after purchasing an additional 784 shares in the last quarter. 82.15% of the stock is owned by hedge funds and other institutional investors.

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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