Key Points
- Visa CFO Chris Suh sold 10,639 shares on May 12 at an average price of $324.81, totaling about $3.46 million. After the sale, he held 9,872 shares, cutting his position by more than 50%.
- Visa recently reported stronger-than-expected quarterly results, with EPS of $3.31 versus the $3.10 estimate and revenue of $11.23 billion, up 17.1% year over year. The company continues to show strong profitability and margin performance.
- Visa’s board authorized a $20 billion share buyback and the company also announced a quarterly dividend of $0.67 per share, payable June 1. Analysts remain broadly bullish, with an average price target of $387.67.
Visa Inc. (NYSE:V - Get Free Report) CFO Chris Suh sold 10,639 shares of Visa stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $324.81, for a total transaction of $3,455,653.59. Following the sale, the chief financial officer directly owned 9,872 shares of the company's stock, valued at $3,206,524.32. This trade represents a 51.87% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website.
Visa Trading Down 1.7%
Shares of NYSE:V opened at $320.77 on Thursday. The firm has a fifty day moving average of $311.08 and a two-hundred day moving average of $326.07. The firm has a market capitalization of $575.39 billion, a P/E ratio of 27.94, a price-to-earnings-growth ratio of 1.75 and a beta of 0.78. Visa Inc. has a 12-month low of $293.89 and a 12-month high of $375.51. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 0.64.
Visa (NYSE:V - Get Free Report) last released its quarterly earnings data 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. Visa had a net margin of 51.68% and a return on equity of 65.00%. The business had revenue of $11.23 billion during the quarter, compared to analyst estimates of $10.75 billion. During the same quarter in the previous year, the business earned $2.76 EPS. Visa's quarterly revenue was up 17.1% compared to the same quarter last year. On average, equities analysts expect that Visa Inc. will post 13.08 EPS for the current fiscal year.
Visa announced that its board has initiated a stock repurchase plan on Tuesday, April 28th that allows the company to repurchase $20.00 billion in shares. This repurchase authorization allows the credit-card processor to reacquire up to 3.6% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's management believes its shares are undervalued.
Visa Announces Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Investors of record on Tuesday, May 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 Tuesday, May 12th. Visa's payout ratio is presently 23.34%.
Analysts Set New Price Targets
Several equities research analysts recently issued reports on the stock. Truist Financial set a $371.00 price objective on shares of Visa and gave the company a "buy" rating in a research note on Tuesday. Macquarie Infrastructure reaffirmed an "outperform" rating and issued a $410.00 price objective on shares of Visa in a research note on Friday, January 30th. Daiwa Securities Group raised shares of Visa from a "neutral" rating to an "outperform" rating and set a $370.00 price objective for the company in a research note on Monday, February 2nd. Raymond James Financial reaffirmed an "outperform" rating and issued a $389.00 price objective on shares of Visa in a research note on Wednesday, April 29th. Finally, Freedom Capital raised shares of Visa from a "hold" rating to a "strong-buy" rating in a research note on Monday, February 16th. Six analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Buy" and an average target price of $387.67.
Get Our Latest Stock Report on Visa
Institutional Inflows and Outflows
Several institutional investors have recently bought and sold shares of V. Clayton Financial Group LLC raised its holdings in Visa by 446.2% in the 4th quarter. Clayton Financial Group LLC now owns 71 shares of the credit-card processor's stock worth $25,000 after acquiring an additional 58 shares during the period. PayPay Securities Corp raised its holdings in Visa by 102.7% in the 4th quarter. PayPay Securities Corp now owns 75 shares of the credit-card processor's stock worth $26,000 after acquiring an additional 38 shares during the period. Cresta Advisors Ltd. bought a new position in Visa in the 4th quarter worth $26,000. Parvin Asset Management LLC raised its holdings in Visa by 200.0% in the 3rd 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 during the period. Finally, Dorato Capital Management bought a new position in Visa in the 4th quarter worth $30,000. Institutional investors own 82.15% of the company's stock.
Trending Headlines about Visa
Here are the key news stories impacting Visa this week:
- Positive Sentiment: Visa expanded its Flexible Credential offering in the U.K. with Zilch and Thredd, allowing consumers to choose among payment options at checkout through one card. That supports Visa’s push into more flexible, digital-first payment experiences and could help drive network usage. Visa Flexible Credential Brings More Flexible Ways to Pay to Zilch Cardholders in the UK
- Positive Sentiment: Visa was highlighted in commentary about strong digital payments trends, with analysts pointing to contactless payments, BNPL adoption, and cross-border growth as long-term tailwinds for the financial transaction sector. 5 Financial Transaction Stocks to Watch Amid Digital Advancements
- Positive Sentiment: Visa continues to be viewed as a beneficiary of strong consumer spending and digital payment growth, with another article noting record U.S. consumption as a favorable backdrop for fintech and card networks. U.S. Consumer Spending Tops $21.86T: 5 Fintech Stocks Under $75
- Neutral Sentiment: Visa received additional attention for rolling out tap-based identity verification with Fidelity Bank Bahamas, another sign of product innovation but not necessarily an immediate earnings catalyst. Visa launches tap-based identity verification with Fidelity Bank Bahamas
- Negative Sentiment: Visa CFO Chris Suh sold 10,639 shares at an average price of $324.81, trimming his ownership by more than half. Insider selling can weigh on sentiment, even if it does not change the company’s fundamentals. SEC Form 4 filing
About Visa
(
Get Free Report)
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.
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