Visa (NYSE:V) Trading Down 1.4% on Insider Selling

Shares of Visa Inc. (NYSE:V) were down 1.4% during mid-day trading on Monday following insider selling activity. The company traded as low as $348.85 and last traded at $357.22. 11,482,368 shares traded hands during trading, an increase of 42% from the average daily volume of 8,088,847 shares. The stock had previously closed at $362.13.

Specifically, General Counsel Julie B. Rottenberg sold 2,027 shares of the company’s stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $360.00, for a total transaction 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 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 link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ryan Mcinerney sold 10,490 shares of the company’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $343.99, for a total transaction of $3,608,455.10. Following the transaction, the chief executive officer owned 15,174 shares of the company’s stock, valued at approximately $5,219,704.26. This represents a 40.87% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In related news, CEO Ryan Mcinerney sold 20,970 shares of the stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $340.25, for a total value of $7,135,042.50. Following the sale, the chief executive officer directly owned 15,174 shares of the company’s stock, valued at $5,162,953.50. This represents a 58.02% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on V. Truist Financial set a $371.00 price target on Visa and gave the stock a “buy” rating in a research report on Tuesday, May 12th. BMO Capital Markets assumed coverage on shares of Visa in a research report on Tuesday, April 21st. They issued an “outperform” rating and a $365.00 target price on the stock. Piper Sandler began coverage on shares of Visa in a report on Monday, June 29th. They set an “overweight” rating and a $394.00 target price for the company. Evercore set a $350.00 target price on Visa in a report on Wednesday, April 29th. Finally, Citigroup dropped their price target on shares of Visa from $450.00 to $400.00 and set a “buy” rating for the company in a research report on Tuesday, April 14th. Six investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus target price of $397.39.

Visa News Summary

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Visa is being highlighted as poised to beat upcoming earnings estimates again, supported by its strong history of earnings surprises and favorable setup for another quarterly outperformance. Why Visa (V) is Poised to Beat Earnings Estimates Again
• Positive Sentiment: Visa is also being described as a strong long-term holding, reinforcing the view that investors see durable business quality and attractive portfolio fit. Why Visa (V) is a Top Stock for the Long-Term
• Positive Sentiment: Visa’s stablecoin analytics showed record June transaction volume of $1.79 trillion, suggesting continued growth in digital payments activity and potential upside from crypto-linked payment rails. Stablecoin transaction volume hits record $1.79T in June
• Positive Sentiment: Visa was included in a note discussing Bank of America’s top U.S. Q3 stock picks, which can support investor confidence in the name. 4 of Bank of America’s Top US Q3 Picks Pay Dividends With Double-Digit Upside Potential
• Neutral Sentiment: One commentary argued Visa is fundamentally strong but preferred waiting for a better entry point, which is more of a valuation caution than a business concern. Visa Is Fundamentally Robust, But I’ll Wait For Better Entry Points
• Neutral Sentiment: Analyst-focused pieces and broader market commentary were generally supportive, but they do not appear to introduce a major new catalyst on their own. Is It Worth Investing in Visa (V) Based on Wall Street’s Bullish Views?

Visa Price Performance

The stock has a market cap of $640.77 billion, a price-to-earnings ratio of 31.12, a PEG ratio of 1.93 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 company’s 50 day moving average is $327.17 and its 200 day moving average is $324.74.

Visa (NYSE:V) last issued its quarterly earnings data on Tuesday, April 28th. The credit-card processor reported $3.31 earnings per share for the quarter, topping analysts’ consensus estimates of $3.10 by $0.21. The business had revenue of $11.23 billion during the quarter, compared to analysts’ expectations of $10.75 billion. Visa had a net margin of 51.68% and a return on equity of 65.00%. The company’s revenue was up 17.1% on a year-over-year basis. During the same period last year, the company posted $2.76 EPS. Research analysts forecast that Visa Inc. will post 13.1 earnings per share for the current fiscal year.

Visa Dividend Announcement

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

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

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in V. Clayton Financial Group LLC lifted its holdings in Visa by 446.2% in the 4th quarter. Clayton Financial Group LLC now owns 71 shares of the credit-card processor’s stock valued at $25,000 after acquiring an additional 58 shares during the last quarter. PayPay Securities Corp grew its position in Visa by 102.7% during the fourth quarter. PayPay Securities Corp now owns 75 shares of the credit-card processor’s stock valued at $26,000 after purchasing an additional 38 shares in the last quarter. Cresta Advisors Ltd. acquired a new position in Visa in the 4th quarter worth about $26,000. Parvin Asset Management LLC raised its position in 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 acquiring an additional 50 shares in the last quarter. Finally, Dorato Capital Management bought a new stake in Visa in the fourth quarter worth approximately $30,000. 82.15% of the stock is currently owned by institutional investors.

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.