Visa (NYSE:V) Trading 3% Higher - Here's What Happened

Key Points

• Visa shares rose 3% to about $382.35, with trading volume slightly above its average.
• Analysts remain bullish, with an average “Buy” rating and a consensus price target of $413.58; several firms recently raised their targets.
• Visa beat quarterly expectations with $3.32 in EPS and $11.63 billion in revenue, while maintaining a $0.67 quarterly dividend and a $20 billion share-repurchase authorization.

Visa Inc. (NYSE:V - Get Free Report)'s stock price shot up 3% during trading on Monday . The company traded as high as $383.43 and last traded at $382.35. Approximately 8,421,077 shares changed hands during trading, an increase of 7% from the average daily volume of 7,906,784 shares. The stock had previously closed at $371.04.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. Wolfe Research reissued an "outperform" rating and set a $435.00 target price (up from $430.00) on shares of Visa in a research note on Wednesday, July 29th. Oppenheimer reiterated an "outperform" rating and issued a $403.00 target price (up from $391.00) on shares of Visa in a research report on Wednesday, April 29th. Clear Str upgraded Visa to a "strong-buy" rating in a report on Thursday, July 16th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $430.00 price objective on shares of Visa in a report on Wednesday, July 29th. Finally, UBS Group restated a "buy" rating and issued a $420.00 price target (up from $410.00) on shares of Visa in a research report on Wednesday, July 29th. Seven investment analysts have rated the stock with a Strong Buy rating and twenty-four have assigned a Buy rating to the company's stock. According to MarketBeat, Visa currently has an average rating of "Buy" and a consensus price target of $413.58.

Visa Stock Performance

The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 0.60. The stock has a market cap of $682.28 billion, a P/E ratio of 32.51, a PEG ratio of 1.99 and a beta of 0.74. The business has a 50 day moving average price of $353.73 and a 200 day moving average price of $329.61.

Visa (NYSE:V - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The credit-card processor reported $3.32 EPS for the quarter, beating the consensus estimate of $3.23 by $0.09. Visa had a return on equity of 67.68% and a net margin of 50.78%.The company had revenue of $11.63 billion for the quarter, compared to the consensus estimate of $11.40 billion. During the same quarter in the prior year, the company posted $2.98 EPS. Visa's quarterly revenue was up 14.4% on a year-over-year basis. As a group, sell-side analysts expect that Visa Inc. will post 13.16 EPS for the current year.

Visa Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 11th will be given a dividend of $0.67 per share. The ex-dividend date of this dividend is Tuesday, August 11th. This represents a $2.68 dividend on an annualized basis and a yield of 0.7%. Visa's dividend payout ratio (DPR) is 22.79%.

Visa announced that its Board of Directors has authorized a stock repurchase program on Tuesday, April 28th that allows the company to repurchase $20.00 billion in shares. This repurchase authorization allows the credit-card processor to buy up to 3.6% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board believes its shares are undervalued.

Insider Activity

In other news, General Counsel Julie B. Rottenberg sold 2,027 shares of the firm's stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $360.00, for a total value of $729,720.00. Following the completion of the sale, the general counsel owned 18,404 shares of the company's stock, valued at $6,625,440. This trade represents a 9.92% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Tullier Kelly Mahon sold 57,272 shares of the firm's stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $364.97, for a total value of $20,902,561.84. Following the completion of the sale, the insider directly owned 49,662 shares of the company's stock, valued at approximately $18,125,140.14. This represents a 53.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 90,759 shares of company stock worth $32,375,779. 0.12% of the stock is currently owned by company insiders.

Institutional Trading of Visa

A number of institutional investors and hedge funds have recently added to or reduced their stakes in V. Brighton Jones LLC lifted its position in Visa by 50.1% during the fourth quarter. Brighton Jones LLC now owns 20,635 shares of the credit-card processor's stock valued at $6,522,000 after purchasing an additional 6,883 shares during the period. Revolve Wealth Partners LLC raised its stake in shares of Visa by 68.9% during 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 buying an additional 4,817 shares during the last quarter. Nicholas Hoffman & Company LLC. lifted its holdings in shares of Visa by 4.6% in the 1st quarter. Nicholas Hoffman & Company LLC. now owns 10,941 shares of the credit-card processor's stock valued at $3,834,000 after buying an additional 477 shares during the period. Matrix Asset Advisors Inc. NY lifted its holdings in shares of Visa by 16.9% in the 2nd quarter. Matrix Asset Advisors Inc. NY now owns 1,133 shares of the credit-card processor's stock valued at $402,000 after buying an additional 164 shares during the period. Finally, Schnieders Capital Management LLC. boosted its stake in shares of Visa by 13.8% in the second quarter. Schnieders Capital Management LLC. now owns 18,367 shares of the credit-card processor's stock worth $6,521,000 after buying an additional 2,230 shares during the last quarter. Institutional investors and hedge funds own 82.15% of the company's stock.

Visa Company Profile

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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