Visa (NYSE:V) Shares Down 1.8% – Here’s Why

Visa Inc. (NYSE:V) shares fell 1.8% on Friday . The stock traded as low as $329.03 and last traded at $329.8940. 6,397,871 shares changed hands during mid-day trading, an increase of 0% from the average session volume of 6,379,497 shares. The stock had previously closed at $336.08.

Wall Street Analysts Forecast Growth

V has been the subject of a number of recent analyst reports. Robert W. Baird set a $425.00 target price on Visa in a research report on Wednesday, October 29th. KeyCorp reaffirmed an “overweight” rating and set a $405.00 price objective on shares of Visa in a report on Wednesday, October 22nd. Wells Fargo & Company upgraded shares of Visa to a “strong-buy” rating in a research note on Wednesday, October 22nd. Macquarie cut their target price on shares of Visa from $425.00 to $410.00 and set an “outperform” rating for the company in a research report on Wednesday, October 29th. Finally, Morgan Stanley set a $398.00 price target on shares of Visa and gave the company an “overweight” rating in a report on Wednesday, October 29th. Four analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $400.00.

Visa Stock Down 1.8%

The firm’s 50-day simple moving average is $342.16 and its 200-day simple moving average is $348.69. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.08 and a current ratio of 1.08. The company has a market capitalization of $604.63 billion, a price-to-earnings ratio of 32.31, a price-to-earnings-growth ratio of 2.00 and a beta of 0.87.

Visa (NYSE:V) last released its earnings results on Tuesday, October 28th. The credit-card processor reported $2.98 earnings per share for the quarter, beating the consensus estimate of $2.97 by $0.01. Visa had a net margin of 50.15% and a return on equity of 60.31%. The business had revenue of $10.72 billion during the quarter, compared to analysts’ expectations of $10.60 billion. During the same quarter last year, the company earned $2.71 earnings per share. The firm’s revenue was up 11.5% on a year-over-year basis. Sell-side analysts forecast that Visa Inc. will post 11.3 earnings per share for the current year.

Visa Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 1st. Stockholders of record on Wednesday, November 12th will be 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 of this dividend is Wednesday, November 12th. This is a boost from Visa’s previous quarterly dividend of $0.59. Visa’s payout ratio is 26.25%.

Insider Activity

In related news, CEO Ryan Mcinerney sold 10,485 shares of the company’s stock in a transaction on Monday, November 3rd. The stock was sold at an average price of $341.00, for a total value of $3,575,385.00. Following the completion of the transaction, the chief executive officer directly owned 537 shares in the company, valued at approximately $183,117. This represents a 95.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Lloyd Carney sold 900 shares of the firm’s stock in a transaction on Tuesday, November 4th. The stock was sold at an average price of $336.48, for a total value of $302,832.00. Following the completion of the transaction, the director directly owned 2,468 shares of the company’s stock, valued at approximately $830,432.64. This trade represents a 26.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 23,897 shares of company stock worth $8,164,561. Company insiders own 0.13% of the company’s stock.

Institutional Trading of Visa

Large investors have recently bought and sold shares of the stock. Keystone Global Partners LLC bought a new position in Visa during the 1st quarter valued at about $26,000. Family Legacy Financial Solutions LLC bought a new stake in Visa during the second quarter worth about $28,000. Harbor Asset Planning Inc. acquired a new stake in shares of Visa during the second quarter worth approximately $29,000. Sagard Holdings Management Inc. acquired a new stake in shares of Visa during the second quarter worth approximately $31,000. Finally, Cranbrook Wealth Management LLC raised its stake in shares of Visa by 82.0% in the second quarter. Cranbrook Wealth Management LLC now owns 91 shares of the credit-card processor’s stock valued at $32,000 after acquiring an additional 41 shares during the last quarter. 82.15% of the stock is currently owned by institutional investors.

About Visa

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.