Visa (NYSE:V) Stock Price Down 1.3% – Here’s Why

Shares of Visa Inc. (NYSE:V) dropped 1.3% during trading on Tuesday . The stock traded as low as $354.69 and last traded at $355.9370. 5,974,387 shares changed hands during trading, a decline of 26% from the average daily volume of 8,038,257 shares. The stock had previously closed at $360.57.

Analyst Upgrades and Downgrades

V has been the topic of a number of analyst reports. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $400.00 price objective on shares of Visa in a research report on Wednesday, April 29th. Truist Financial set a $371.00 target price on shares of Visa and gave the company a “buy” rating in a research report on Tuesday, May 12th. Raymond James Financial restated an “outperform” rating and issued a $389.00 target price on shares of Visa in a research note on Wednesday, April 29th. Oppenheimer reaffirmed an “outperform” rating and issued a $403.00 price target (up from $391.00) on shares of Visa in a report on Wednesday, April 29th. Finally, BMO Capital Markets reaffirmed an “outperform” rating and set a $387.00 price target (up from $375.00) on shares of Visa in a research report on Wednesday, July 15th. Seven investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Buy” and an average target price of $398.36.

Visa Stock Performance

The firm has a market cap of $638.47 billion, a price-to-earnings ratio of 31.00, a P/E/G ratio of 1.91 and a beta of 0.75. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.09 and a quick ratio of 1.09. The firm has a fifty day simple moving average of $335.15 and a two-hundred day simple moving average of $325.05.

Visa (NYSE:V) last posted its quarterly earnings data on Tuesday, April 28th. The credit-card processor reported $3.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.10 by $0.21. The firm had revenue of $11.23 billion for the quarter, compared to the consensus estimate of $10.75 billion. Visa had a net margin of 51.68% and a return on equity of 65.00%. The company’s revenue for the quarter was up 17.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.76 earnings per share. On average, analysts expect that Visa Inc. will post 13.11 EPS for the current year.

Visa Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, June 1st. Shareholders of record on Tuesday, May 12th were given a dividend of $0.67 per share. This represents a $2.68 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Tuesday, May 12th. Visa’s payout ratio is currently 23.34%.

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

Insider Buying and Selling at Visa

In other Visa news, CFO Chris Suh sold 10,639 shares of the company’s stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $324.81, for a total transaction of $3,455,653.59. Following the transaction, the chief financial officer owned 9,872 shares in the company, valued at approximately $3,206,524.32. This represents a 51.87% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Ryan Mcinerney sold 31,455 shares of the firm’s stock in a transaction on Wednesday, April 29th. The stock was sold at an average price of $340.14, for a total transaction of $10,699,103.70. Following the completion of the transaction, the chief executive officer directly owned 15,174 shares of the company’s stock, valued at approximately $5,161,284.36. This represents a 67.46% 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. In the last quarter, insiders have sold 75,581 shares of company stock worth $25,627,975. 0.12% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Norges Bank acquired a new stake in Visa during the 4th quarter valued at approximately $5,877,738,000. Cardano Risk Management B.V. raised its holdings in shares of Visa by 867.6% during the fourth quarter. Cardano Risk Management B.V. now owns 8,213,610 shares of the credit-card processor’s stock worth $2,880,595,000 after purchasing an additional 7,364,762 shares during the last quarter. Diamant Asset Management Inc. lifted its position in Visa by 29,706.3% during the first quarter. Diamant Asset Management Inc. now owns 7,332,947 shares of the credit-card processor’s stock valued at $2,216,310,000 after purchasing an additional 7,308,345 shares during the period. J. Stern & Co. LLP boosted its holdings in Visa by 12,497.1% in the fourth quarter. J. Stern & Co. LLP now owns 3,378,039 shares of the credit-card processor’s stock valued at $1,184,712,000 after purchasing an additional 3,351,223 shares during the last quarter. Finally, Victory Capital Management Inc. grew its position in Visa by 48.2% during the 4th quarter. Victory Capital Management Inc. now owns 6,508,089 shares of the credit-card processor’s stock worth $2,282,472,000 after purchasing an additional 2,116,463 shares during the period. 82.15% of the stock is owned by institutional investors and hedge funds.

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.