Visteon (NASDAQ:VC) Shares Down 9.4% Following Analyst Downgrade

Key Points

• Visteon shares fell 9.4% after Wells Fargo trimmed its price target from $139 to $137, though the firm kept an overweight rating. The stock briefly traded as low as $98.40 during the session.
• Analysts remain broadly positive on the company, with 11 Buy ratings and 4 Hold ratings and a consensus price target of $134. Recent calls from JPMorgan, UBS, Barclays, Baird, and TD Cowen were also favorable.
• Visteon recently posted mixed quarterly results, missing EPS estimates at $1.65 versus $1.96 expected, even as revenue came in above forecasts at $954 million. The company also paid a quarterly dividend of $0.375 per share, equal to a 1.5% annualized yield.

Shares of Visteon Corporation (NASDAQ:VC - Get Free Report) were down 9.4% during trading on Friday after Wells Fargo & Company lowered their price target on the stock from $139.00 to $137.00. Wells Fargo & Company currently has an overweight rating on the stock. Visteon traded as low as $98.40 and last traded at $101.0180. 107,326 shares were traded during mid-day trading, a decline of 82% from the average session volume of 583,598 shares. The stock had previously closed at $111.50.

Several other equities research analysts have also weighed in on VC. JPMorgan Chase & Co. raised shares of Visteon from a "neutral" rating to an "overweight" rating and upped their target price for the stock from $108.00 to $165.00 in a report on Monday. UBS Group boosted their price target on shares of Visteon from $120.00 to $130.00 and gave the company a "buy" rating in a research report on Friday, April 24th. Barclays raised shares of Visteon from an "equal weight" rating to an "overweight" rating and upped their price objective for the stock from $115.00 to $145.00 in a research note on Monday. Robert W. Baird raised their price objective on shares of Visteon from $112.00 to $121.00 and gave the stock an "outperform" rating in a report on Friday, April 24th. Finally, TD Cowen reiterated a "buy" rating on shares of Visteon in a research note on Monday. Eleven investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, Visteon currently has an average rating of "Moderate Buy" and a consensus price target of $134.00.

Insider Buying and Selling

In other news, CEO Sachin Lawande sold 38,817 shares of the firm's stock in a transaction on Friday, April 24th. The stock was sold at an average price of $113.63, for a total value of $4,410,775.71. Following the completion of the sale, the chief executive officer directly owned 193,822 shares in the company, valued at approximately $22,023,993.86. This trade represents a 16.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Brett D. Pynnonen sold 5,000 shares of the company's stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $120.00, for a total transaction of $600,000.00. Following the transaction, the senior vice president owned 8,503 shares in the company, valued at approximately $1,020,360. This trade represents a 37.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 58,901 shares of company stock valued at $6,699,220 in the last 90 days. 2.00% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Visteon

Institutional investors have recently modified their holdings of the business. Amundi lifted its holdings in Visteon by 1.3% in the second quarter. Amundi now owns 6,862 shares of the company's stock valued at $706,000 after buying an additional 86 shares during the period. Orion Porfolio Solutions LLC grew its holdings in Visteon by 1.2% during the 3rd quarter. Orion Porfolio Solutions LLC now owns 8,141 shares of the company's stock worth $976,000 after acquiring an additional 97 shares during the period. Oregon Public Employees Retirement Fund grew its holdings in Visteon by 1.8% during the 1st quarter. Oregon Public Employees Retirement Fund now owns 5,582 shares of the company's stock worth $509,000 after acquiring an additional 100 shares during the period. Advisors Asset Management Inc. raised its position in shares of Visteon by 1.8% during the 4th quarter. Advisors Asset Management Inc. now owns 6,536 shares of the company's stock valued at $622,000 after acquiring an additional 116 shares during the last quarter. Finally, UMB Bank n.a. raised its position in shares of Visteon by 32.1% during the 4th quarter. UMB Bank n.a. now owns 506 shares of the company's stock valued at $48,000 after acquiring an additional 123 shares during the last quarter. Institutional investors and hedge funds own 99.71% of the company's stock.

Visteon Stock Performance

The stock has a 50 day moving average price of $112.83 and a two-hundred day moving average price of $101.61. The company has a current ratio of 1.73, a quick ratio of 1.43 and a debt-to-equity ratio of 0.17. The company has a market cap of $2.71 billion, a price-to-earnings ratio of 12.39, a P/E/G ratio of 1.48 and a beta of 1.26.

Visteon (NASDAQ:VC - Get Free Report) last announced its quarterly earnings data on Thursday, April 23rd. The company reported $1.65 EPS for the quarter, missing analysts' consensus estimates of $1.96 by ($0.31). The company had revenue of $954.00 million for the quarter, compared to analyst estimates of $901.33 million. Visteon had a return on equity of 15.93% and a net margin of 5.99%.The firm's revenue for the quarter was up 2.1% on a year-over-year basis. During the same period last year, the firm earned $2.47 earnings per share. Analysts predict that Visteon Corporation will post 8.58 EPS for the current year.

Visteon Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 1st were given a dividend of $0.375 per share. This represents a $1.50 annualized dividend and a dividend yield of 1.5%. The ex-dividend date was Monday, June 1st. Visteon's payout ratio is presently 18.27%.

Visteon Company Profile

Visteon Corporation is a global automotive electronics supplier that specializes in designing, engineering and manufacturing cockpit electronics and connected vehicle solutions. The company's product portfolio spans digital instrument clusters, infotainment systems, domain controllers and advanced driver interaction technologies. By integrating hardware, software and services, Visteon aims to deliver complete cockpit electronics platforms that enhance driver experience, safety and connectivity.

Founded in 2000 as a spin-off from Ford Motor Company, Visteon has evolved its focus toward next-generation electronics and software-driven vehicle architectures.

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