Visa (NYSE:V) Stock Price Down 1.4% – Here’s Why

Shares of Visa Inc. (NYSE:V) fell 1.4% during mid-day trading on Monday . The company traded as low as $358.52 and last traded at $358.94. Approximately 10,266,788 shares traded hands during mid-day trading, an increase of 30% from the average session volume of 7,907,100 shares. The stock had previously closed at $364.15.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the stock. Truist Financial set a $406.00 price target on shares of Visa and gave the company a “buy” rating in a report on Wednesday, August 5th. Weiss Ratings upgraded shares of Visa from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, July 30th. Oppenheimer reissued an “outperform” rating and set a $403.00 target price (up from $391.00) on shares of Visa in a research note on Wednesday, April 29th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $430.00 target price on shares of Visa in a research note on Wednesday, July 29th. Finally, Barclays initiated coverage on shares of Visa in a research note on Tuesday, July 7th. They issued an “overweight” rating and a $420.00 price target on the stock. Seven research analysts have rated the stock with a Strong Buy rating and twenty-four have issued a Buy rating to the company’s stock. Based on data from MarketBeat, Visa has an average rating of “Buy” and a consensus price target of $413.58.

Visa Stock Performance

The company has a market cap of $640.50 billion, a P/E ratio of 30.52, a PEG ratio of 1.95 and a beta of 0.74. The company has a 50 day moving average price of $349.37 and a 200-day moving average price of $328.29. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 0.60.

Visa (NYSE:V) last issued its quarterly earnings results on Tuesday, July 28th. The credit-card processor reported $3.32 EPS for the quarter, beating analysts’ consensus estimates of $3.23 by $0.09. The company had revenue of $11.63 billion for the quarter, compared to analyst estimates of $11.40 billion. Visa had a return on equity of 67.68% and a net margin of 50.78%.The company’s quarterly revenue was up 14.4% compared to the same quarter last year. During the same period last year, the company earned $2.98 earnings per share. Equities analysts expect that Visa Inc. will post 13.15 EPS for the current fiscal year.

Visa Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 11th will be given 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 is Tuesday, August 11th. Visa’s payout ratio is 22.79%.

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

Insider Activity

In other Visa news, CEO Ryan Mcinerney sold 20,970 shares of the company’s stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $340.25, for a total value of $7,135,042.50. Following the completion of the sale, the chief executive officer directly owned 15,174 shares in the company, valued at $5,162,953.50. This represents a 58.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $360.00, for a total value of $729,720.00. Following the transaction, the general counsel directly owned 18,404 shares of the company’s stock, valued at approximately $6,625,440. The trade was a 9.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 90,759 shares of company stock worth $32,375,779 over the last three months. Corporate insiders own 0.12% of the company’s stock.

Institutional Trading of Visa

Hedge funds and other institutional investors have recently modified their holdings of the company. Philadelphia Investment Partners LLC acquired a new stake in shares of Visa in the second quarter valued at $29,000. Port Capital LLC grew its holdings in Visa by 4.8% during the second quarter. Port Capital LLC now owns 122,593 shares of the credit-card processor’s stock worth $42,060,000 after acquiring an additional 5,661 shares during the period. Windsor Advisory Group LLC bought a new stake in Visa in the second quarter worth about $308,000. Vantage Point Financial LLC raised its position in Visa by 6.7% in the second quarter. Vantage Point Financial LLC now owns 858 shares of the credit-card processor’s stock worth $295,000 after acquiring an additional 54 shares in the last quarter. Finally, Wallace Capital Management Inc. lifted its holdings in Visa by 24.3% in the 2nd quarter. Wallace Capital Management Inc. now owns 4,222 shares of the credit-card processor’s stock valued at $1,449,000 after acquiring an additional 825 shares during the last quarter. 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.