Visa (NYSE:V) Stock Price Down 1.7% on Insider Selling

Visa Inc. (NYSE:V)’s share price was down 1.7% on Wednesday after an insider sold shares in the company. The company traded as low as $319.80 and last traded at $320.77. Approximately 6,794,667 shares changed hands during trading, a decline of 12% from the average daily volume of 7,731,953 shares. The stock had previously closed at $326.42.

Specifically, 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 sale, the chief financial officer owned 9,872 shares of the company’s stock, valued at $3,206,524.32. The trade was a 51.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on V shares. Royal Bank Of Canada restated an “outperform” rating and issued a $395.00 target price on shares of Visa in a report on Friday, January 30th. Oppenheimer restated an “outperform” rating and issued a $403.00 target price (up from $391.00) on shares of Visa in a report on Wednesday, April 29th. Loop Capital started coverage on shares of Visa in a report on Tuesday, March 31st. They issued a “buy” rating and a $387.00 target price on the stock. UBS Group boosted their target price on shares of Visa from $390.00 to $410.00 and gave the company a “buy” rating in a report on Wednesday, April 29th. Finally, Piper Sandler set a $160.00 target price on shares of Visa in a report on Wednesday, January 28th. Six equities research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Buy” and a consensus target price of $387.67.

Key Visa News

Here are the key news stories impacting Visa this week:

• Positive Sentiment: Trump said he urged China to open its credit card market more to Visa, raising hopes for future international growth if market access improves. Reuters related coverage
• Positive Sentiment: Visa is expanding digital identity and card activation tools, while also launching AI-powered fan intelligence capabilities, reinforcing its innovation and product-growth story. Visa Links Tap Identity And AI Fan Data To Its Growth Story
• Positive Sentiment: Recent commentary highlighted strong spending trends and digital payments adoption, which generally support transaction volume for Visa’s network. Credit Card Charges Show This Glaring Divergence With The Economy
• Neutral Sentiment: Visa CFO Chris Suh sold shares in a disclosed insider transaction, which may slightly pressure sentiment but does not change the company’s operating outlook. SEC Form 4 filing
• Negative Sentiment: Separate news about delays in U.S. green-card processing and Hungary’s visa-worker policy are mostly unrelated to Visa Inc.’s business and should have limited direct impact on the stock. US Delays Green Card Processing For Indians In Key Visa Categories

Visa Stock Up 0.9%

The company has a debt-to-equity ratio of 0.64, a current ratio of 1.09 and a quick ratio of 1.09. The stock has a market cap of $583.73 billion, a price-to-earnings ratio of 28.35, a price-to-earnings-growth ratio of 1.71 and a beta of 0.78. The firm’s fifty day moving average price is $311.10 and its two-hundred day moving average price is $325.89.

Visa (NYSE:V) last posted its earnings results on Tuesday, April 28th. The credit-card processor reported $3.31 earnings per share for the quarter, topping analysts’ consensus estimates of $3.10 by $0.21. Visa had a net margin of 51.68% and a return on equity of 65.00%. The company had revenue of $11.23 billion for the quarter, compared to analyst estimates of $10.75 billion. During the same quarter in the prior year, the business posted $2.76 EPS. The firm’s revenue was up 17.1% compared to the same quarter last year. Sell-side analysts forecast that Visa Inc. will post 13.09 earnings per share for the current fiscal year.

Visa Announces Dividend

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

Visa announced that its Board of Directors has initiated a share buyback program on Tuesday, April 28th that permits the company to repurchase $20.00 billion in shares. This repurchase authorization permits the credit-card processor to purchase up to 3.6% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its stock is undervalued.

Institutional Investors Weigh In On Visa

A number of institutional investors have recently added to or reduced their stakes in the company. Delta Global Management LP grew its position in Visa by 6.2% in the 1st quarter. Delta Global Management LP now owns 7,476 shares of the credit-card processor’s stock worth $2,260,000 after purchasing an additional 437 shares in the last quarter. Everest Financial Group LLC grew its position in Visa by 24.8% in the 1st quarter. Everest Financial Group LLC now owns 33,844 shares of the credit-card processor’s stock worth $10,229,000 after purchasing an additional 6,728 shares in the last quarter. OMERS ADMINISTRATION Corp grew its position in Visa by 25.0% in the 1st quarter. OMERS ADMINISTRATION Corp now owns 106,139 shares of the credit-card processor’s stock worth $32,079,000 after purchasing an additional 21,230 shares in the last quarter. North Reef Capital Management LP grew its position in Visa by 33.3% in the 1st quarter. North Reef Capital Management LP now owns 360,000 shares of the credit-card processor’s stock worth $108,806,000 after purchasing an additional 90,000 shares in the last quarter. Finally, FreeGulliver LLC grew its position in Visa by 4.6% in the 1st quarter. FreeGulliver LLC now owns 2,125 shares of the credit-card processor’s stock worth $642,000 after purchasing an additional 94 shares in the last quarter. 82.15% of the stock is owned by institutional investors.

Visa Company Profile

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.