Visa (NYSE:V) Shares Down 1.3% – What’s Next?

Visa Inc. (NYSE:V) shares 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 mid-day trading, a decline of 26% from the average daily volume of 8,038,257 shares. The stock had previously closed at $360.57.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the company. Truist Financial set a $371.00 target price on Visa and gave the company a “buy” rating in a research report on Tuesday, May 12th. Raymond James Financial restated an “outperform” rating and set a $389.00 price objective on shares of Visa in a research report on Wednesday, April 29th. Piper Sandler started coverage on shares of Visa in a report on Monday, June 29th. They set an “overweight” rating and a $394.00 price objective on the stock. Clear Str raised shares of Visa to a “strong-buy” rating in a research note on Thursday, July 16th. Finally, Robert W. Baird set a $412.00 price target on shares of Visa and gave the stock an “outperform” rating in a research report on Monday, July 6th. Eight research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Buy” and an average target price of $398.36.

Visa Stock Performance

The company has a market cap of $627.01 billion, a price-to-earnings ratio of 30.45, a PEG ratio of 1.89 and a beta of 0.75. The firm’s 50 day simple moving average is $336.39 and its 200-day simple moving average is $325.10. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.09 and a current ratio of 1.09.

Visa (NYSE:V) last issued its earnings results on Tuesday, April 28th. The credit-card processor reported $3.31 EPS for the quarter, beating 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 quarterly revenue was up 17.1% compared to the same quarter last year. During the same period in the prior year, the business earned $2.76 earnings per share. On average, sell-side analysts predict that Visa Inc. will post 13.13 EPS for the current year.

Visa Announces Dividend

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

Visa announced that its board has initiated a share repurchase plan on Tuesday, April 28th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the credit-card processor to purchase up to 3.6% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Insider Activity at Visa

In other Visa news, 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 value of $3,608,455.10. Following the completion of the sale, the chief executive officer directly owned 15,174 shares in the company, valued at $5,219,704.26. This represents a 40.87% decrease in their position. The sale was disclosed in a 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, 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 directly owned 18,404 shares of the company’s stock, valued at $6,625,440. This trade represents a 9.92% decrease in their ownership of the stock. 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. Over the last 90 days, insiders sold 75,581 shares of company stock valued at $25,627,975. 0.12% of the stock is currently owned by insiders.

Institutional Trading of Visa

Hedge funds have recently made changes to their positions in 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 worth $25,000 after purchasing an additional 58 shares during the period. PayPay Securities Corp raised its holdings in Visa by 102.7% in the 4th quarter. PayPay Securities Corp now owns 75 shares of the credit-card processor’s stock valued at $26,000 after buying an additional 38 shares during the period. Cresta Advisors Ltd. acquired a new position in Visa in the fourth quarter valued at about $26,000. Parvin Asset Management LLC boosted its stake in Visa by 200.0% during the third quarter. Parvin Asset Management LLC now owns 75 shares of the credit-card processor’s stock worth $26,000 after buying an additional 50 shares during the period. Finally, Dorato Capital Management purchased a new position in Visa during the fourth quarter worth about $30,000. 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.