Visa (NYSE:V) Stock Price Down 1.1% – Here’s Why

by · The Markets Daily

Visa Inc. (NYSE:V – Get Free Report) fell 1.1% on Friday . The company traded as low as $338.17 and last traded at $341.0680. 7,299,652 shares traded hands during mid-day trading, an increase of 14% from the average session volume of 6,407,796 shares. The stock had previously closed at $345.03.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on V. Macquarie decreased their target price on Visa from $425.00 to $410.00 and set an “outperform” rating on the stock in a research note on Wednesday. Wells Fargo & Company upgraded shares of Visa to a “strong-buy” rating in a research report on Wednesday, October 22nd. UBS Group set a $425.00 target price on shares of Visa and gave the stock a “buy” rating in a research report on Wednesday. Barclays reaffirmed an “overweight” rating and set a $408.00 target price (up from $396.00) on shares of Visa in a research note on Thursday, July 31st. Finally, Erste Group Bank downgraded shares of Visa from a “buy” rating to a “hold” rating in a report on Monday, September 22nd. Four research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $400.00.

View Our Latest Stock Analysis on Visa

Visa Trading Down 1.1%

The company has a quick ratio of 1.12, a current ratio of 1.08 and a debt-to-equity ratio of 0.53. The stock’s 50 day moving average is $344.78 and its 200-day moving average is $348.40. The company has a market cap of $625.11 billion, a PE ratio of 33.41, a P/E/G ratio of 2.03 and a beta of 0.90.

Visa (NYSE:V – Get Free Report) last posted its earnings results on Tuesday, October 28th. The credit-card processor reported $2.98 earnings per share for the quarter, topping analysts’ consensus estimates of $2.97 by $0.01. The firm had revenue of $10.72 billion for the quarter, compared to the consensus estimate of $10.60 billion. Visa had a net margin of 50.15% and a return on equity of 60.31%. The business’s quarterly revenue was up 11.5% on a year-over-year basis. During the same period in the previous year, the firm posted $2.71 EPS. As a group, sell-side analysts anticipate that Visa Inc. will post 11.3 EPS for the current year.

Visa Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 1st. Stockholders of record on Wednesday, November 12th will be paid a $0.67 dividend. This represents a $2.68 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Wednesday, November 12th. This is a positive change from Visa’s previous quarterly dividend of $0.59. Visa’s dividend payout ratio is 23.11%.

Insider Buying and Selling

In other Visa news, CEO Ryan Mcinerney sold 10,485 shares of Visa stock in a transaction on Wednesday, October 1st. The shares were sold at an average price of $342.30, for a total transaction of $3,589,015.50. Following the completion of the transaction, the chief executive officer directly owned 537 shares of the company’s stock, valued at $183,815.10. The trade was a 95.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, General Counsel Julie B. Rottenberg sold 2,027 shares of the stock in a transaction on Monday, August 18th. The shares were sold at an average price of $344.02, for a total transaction of $697,328.54. Following the completion of the sale, the general counsel directly owned 11,925 shares in the company, valued at approximately $4,102,438.50. This represents a 14.53% decrease in their position. The SEC filing for this sale provides additional information. 0.13% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Visa

Several hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in shares of Visa by 0.9% during the 2nd quarter. Vanguard Group Inc. now owns 162,544,006 shares of the credit-card processor’s stock worth $57,711,249,000 after acquiring an additional 1,461,575 shares during the last quarter. Geode Capital Management LLC grew its position in Visa by 2.5% in the 2nd quarter. Geode Capital Management LLC now owns 43,096,802 shares of the credit-card processor’s stock valued at $15,253,245,000 after acquiring an additional 1,067,631 shares during the last quarter. Norges Bank purchased a new stake in Visa in the second quarter worth $7,034,939,000. TCI Fund Management Ltd. lifted its position in shares of Visa by 14.6% during the second quarter. TCI Fund Management Ltd. now owns 19,067,558 shares of the credit-card processor’s stock worth $6,769,936,000 after purchasing an additional 2,429,996 shares during the last quarter. Finally, Northern Trust Corp boosted its stake in shares of Visa by 4.0% during the first quarter. Northern Trust Corp now owns 18,987,013 shares of the credit-card processor’s stock valued at $6,654,189,000 after purchasing an additional 726,299 shares during the period. 82.15% of the stock is currently owned by institutional investors.

Visa Company Profile

(Get Free Report)

Visa Inc operates as a payment technology company in the United States and internationally. The company operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. It also offers credit, debit, and prepaid card products; tap to pay, tokenization, and click to pay services; Visa Direct, a solution that facilitates the delivery of funds to eligible cards, deposit accounts, and digital wallets; Visa B2B Connect, a multilateral business-to-business cross-border payments network; Visa Cross-Border Solution, a cross-border consumer payments solution; and Visa DPS that provides a range of value-added services, including fraud mitigation, dispute management, data analytics, campaign management, a suite of digital solutions, and contact center services.

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