Visa (NYSE:V) Trading Down 2.2% - What's Next?

Key Points

• Visa shares fell 2.2% to about $362.32 in Friday trading, but remained above their 50-day and 200-day moving averages. The company has a market capitalization of roughly $649.9 billion and trades at a P/E ratio of 30.81.
• Analysts remain bullish, with an average rating of “Buy” and an average price target of $413.58; recent targets range from $403 to $445. Visa also exceeded quarterly expectations, reporting $3.32 in EPS and $11.63 billion in revenue, with revenue up 14.4% year over year.
• Visa declared a quarterly dividend of $0.67 per share and authorized a $20 billion share-repurchase program, while insiders have sold more than 101,000 shares worth approximately $35.8 million over the past 90 days.

Shares of Visa Inc. (NYSE:V - Get Free Report) fell 2.2% during trading on Friday . The company traded as low as $361.52 and last traded at $362.32. Approximately 5,086,532 shares traded hands during mid-day trading, a decline of 36% from the average session volume of 7,934,634 shares. The stock had previously closed at $370.47.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Truist Financial set a $406.00 target price on shares of Visa and gave the stock a "buy" rating in a report on Wednesday. Royal Bank Of Canada reissued an "outperform" rating and issued a $412.00 price target (up from $395.00) on shares of Visa in a report on Wednesday, July 29th. Clear Str upgraded shares of Visa to a "strong-buy" rating in a research report on Thursday, July 16th. Cantor Fitzgerald set a $445.00 price target on shares of Visa and gave the stock an "overweight" rating in a report on Monday. Finally, Oppenheimer reiterated an "outperform" rating and issued a $403.00 price objective (up from $391.00) on shares of Visa in a research report on Wednesday, April 29th. Seven research 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, the company has an average rating of "Buy" and an average 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 company's 50-day moving average is $344.41 and its two-hundred day moving average is $326.79. The company has a market capitalization of $649.92 billion, a P/E ratio of 30.81, a PEG ratio of 1.98 and a beta of 0.74.

Visa (NYSE:V - Get Free Report) last announced its earnings results on Tuesday, July 28th. The credit-card processor reported $3.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.23 by $0.09. Visa had a net margin of 50.78% and a return on equity of 67.68%. The business had revenue of $11.63 billion during the quarter, compared to analyst estimates of $11.40 billion. During the same period in the previous year, the business posted $2.98 earnings per share. Visa's revenue for the quarter was up 14.4% on a year-over-year basis. Equities analysts anticipate that Visa Inc. will post 13.14 earnings per share for the current fiscal year.

Visa Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 11th will be issued a dividend of $0.67 per share. This represents a $2.68 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Tuesday, August 11th. Visa's payout ratio is currently 22.79%.

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

Insider Activity at Visa

In related news, General Counsel Julie B. Rottenberg sold 2,027 shares of the 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 transaction, the general counsel owned 18,404 shares of the company's stock, valued at $6,625,440. This represents a 9.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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 shares were sold at an average price of $364.97, for a total value of $20,902,561.84. Following the sale, the insider owned 49,662 shares in the company, valued at $18,125,140.14. The trade was a 53.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 101,398 shares of company stock valued at $35,831,433 over the last ninety days. 0.12% of the stock is currently owned by insiders.

Institutional Trading of Visa

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Clayton Financial Group LLC grew its holdings in shares of Visa by 446.2% during the 4th quarter. Clayton Financial Group LLC now owns 71 shares of the credit-card processor's stock valued at $25,000 after purchasing an additional 58 shares during the last quarter. PayPay Securities Corp lifted its stake in Visa by 102.7% in the fourth 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. bought a new stake in Visa in the fourth quarter worth $26,000. Parvin Asset Management LLC grew its stake in shares of 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 buying an additional 50 shares during the last quarter. Finally, RHL Group LLC bought a new position in shares of Visa during the fourth quarter valued at about $34,000. 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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