Visa (NYSE:V) Trading Down 1.3% – Time to Sell?

Visa Inc. (NYSE:V)’s share price dropped 1.3% during trading on Monday . The company traded as low as $318.43 and last traded at $319.5060. Approximately 5,564,618 shares were traded during trading, a decline of 29% from the average daily volume of 7,830,366 shares. The stock had previously closed at $323.57.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on V shares. Oppenheimer reaffirmed an “outperform” rating and issued a $403.00 price objective (up from $391.00) on shares of Visa in a research note on Wednesday, April 29th. Freedom Capital upgraded shares of Visa from a “hold” rating to a “strong-buy” rating in a research note on Monday, February 16th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $400.00 price target on shares of Visa in a report on Wednesday, April 29th. Loop Capital started coverage on shares of Visa in a research report on Tuesday, March 31st. They set a “buy” rating and a $387.00 price objective for the company. Finally, Morgan Stanley restated an “overweight” rating and issued a $415.00 target price on shares of Visa in a research report on Wednesday, April 29th. Six analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, Visa has an average rating of “Buy” and a consensus price target of $387.78.

Visa Trading Down 1.3%

The business’s fifty day moving average is $316.53 and its 200-day moving average is $324.48. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.09 and a current ratio of 1.09. The firm has a market cap of $573.12 billion, a P/E ratio of 27.83, a price-to-earnings-growth ratio of 1.73 and a beta of 0.77.

Visa (NYSE:V) last announced its quarterly earnings results 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 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 in the prior year, the company posted $2.76 EPS. Analysts predict that Visa Inc. will post 13.09 EPS for the current year.

Visa Announces Dividend

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

Visa announced that its Board of Directors has approved a stock buyback plan on Tuesday, April 28th that authorizes the company to repurchase $20.00 billion in outstanding 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 usually a sign that the company’s board of directors believes its stock is undervalued.

Insider Transactions at Visa

In related news, CFO Chris Suh sold 10,639 shares of the business’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $324.81, for a total value of $3,455,653.59. Following the transaction, the chief financial officer owned 9,872 shares in the company, valued at $3,206,524.32. The trade was a 51.87% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Ryan Mcinerney sold 31,455 shares of the stock in a transaction dated Wednesday, April 29th. The stock was sold at an average price of $340.14, for a total value of $10,699,103.70. Following the sale, the chief executive officer owned 15,174 shares of the company’s stock, valued at approximately $5,161,284.36. The trade was a 67.46% 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. In the last 90 days, insiders have sold 42,744 shares of company stock worth $14,356,010. Company insiders own 0.12% of the company’s stock.

Institutional Investors Weigh In On Visa

Several large investors have recently added to or reduced their stakes in the business. Clayton Financial Group LLC grew its holdings in Visa by 446.2% in the fourth 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 increased its position 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 in the last quarter. Cresta Advisors Ltd. acquired a new position in Visa during the 4th quarter worth approximately $26,000. Parvin Asset Management LLC boosted its holdings in Visa by 200.0% in the third quarter. Parvin Asset Management LLC now owns 75 shares of the credit-card processor’s stock worth $26,000 after acquiring an additional 50 shares in the last quarter. Finally, Dorato Capital Management acquired a new stake in Visa in the fourth quarter valued at approximately $30,000. Institutional investors and hedge funds 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.