Investors Buy Visa (V) on Weakness

Traders purchased shares of Visa (NYSE:V) on weakness during trading on Friday. $405.45 million flowed into the stock on the tick-up and $103.47 million flowed out of the stock on the tick-down, for a money net flow of $301.98 million into the stock. Of all equities tracked, Visa had the highest net in-flow for the day. Visa traded down ($0.61) for the day and closed at $131.28

A number of brokerages have recently weighed in on V. Mizuho restated a “buy” rating and issued a $136.00 target price on shares of Visa in a research note on Friday, February 2nd. Guggenheim restated a “buy” rating and issued a $136.00 target price on shares of Visa in a research note on Friday, February 2nd. Loop Capital raised their target price on Visa to $142.00 and gave the company a “buy” rating in a research note on Friday, February 2nd. Nomura lowered their target price on Visa from $148.00 to $146.00 and set a “buy” rating for the company in a research note on Friday, February 2nd. Finally, Keefe, Bruyette & Woods restated a “buy” rating on shares of Visa in a research note on Thursday, February 1st. Four equities research analysts have rated the stock with a hold rating, thirty have assigned a buy rating and one has given a strong buy rating to the company. The stock currently has an average rating of “Buy” and an average target price of $137.53.

The stock has a market capitalization of $268.32 billion, a PE ratio of 37.72, a PEG ratio of 1.71 and a beta of 0.98. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.94 and a quick ratio of 1.94.



Visa (NYSE:V) last posted its earnings results on Wednesday, April 25th. The credit-card processor reported $1.11 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.01 by $0.10. The company had revenue of $5.07 billion during the quarter, compared to analyst estimates of $4.82 billion. Visa had a return on equity of 33.90% and a net margin of 48.18%. The company’s revenue for the quarter was up 13.3% compared to the same quarter last year. During the same period in the previous year, the company earned $0.86 EPS. equities research analysts forecast that Visa will post 4.46 EPS for the current year.

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 5th. Stockholders of record on Friday, May 18th will be given a dividend of $0.21 per share. The ex-dividend date of this dividend is Thursday, May 17th. This represents a $0.84 annualized dividend and a dividend yield of 0.64%. Visa’s payout ratio is currently 24.14%.

Visa declared that its board has initiated a stock buyback program on Thursday, February 1st that authorizes the company to buyback $7.50 billion in shares. This buyback authorization authorizes the credit-card processor to purchase shares of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s management believes its shares are undervalued.

In other news, President Ryan Mcinerney sold 38,500 shares of Visa stock in a transaction dated Thursday, May 10th. The stock was sold at an average price of $131.33, for a total transaction of $5,056,205.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, SVP James H. Hoffmeister sold 8,423 shares of Visa stock in a transaction dated Monday, April 30th. The shares were sold at an average price of $127.67, for a total value of $1,075,364.41. The disclosure for this sale can be found here. 0.14% of the stock is currently owned by insiders.

Large investors have recently added to or reduced their stakes in the company. BlackRock Inc. lifted its stake in Visa by 2.5% in the 4th quarter. BlackRock Inc. now owns 120,243,230 shares of the credit-card processor’s stock valued at $13,710,132,000 after acquiring an additional 2,986,301 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in Visa by 730.6% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 2,992,638 shares of the credit-card processor’s stock valued at $341,221,000 after acquiring an additional 2,632,338 shares in the last quarter. Temasek Holdings Private Ltd lifted its stake in Visa by 116.3% in the 3rd quarter. Temasek Holdings Private Ltd now owns 3,292,775 shares of the credit-card processor’s stock valued at $346,532,000 after acquiring an additional 1,770,488 shares in the last quarter. The Manufacturers Life Insurance Company lifted its stake in Visa by 28.9% in the 4th quarter. The Manufacturers Life Insurance Company now owns 6,943,917 shares of the credit-card processor’s stock valued at $791,746,000 after acquiring an additional 1,556,120 shares in the last quarter. Finally, Prudential Financial Inc. increased its position in shares of Visa by 56.1% during the 3rd quarter. Prudential Financial Inc. now owns 4,023,202 shares of the credit-card processor’s stock worth $423,401,000 after purchasing an additional 1,445,091 shares during the last quarter. Institutional investors and hedge funds own 80.11% of the company’s stock.

Visa Company Profile

Visa Inc operates as a payments technology company worldwide. The company facilitates commerce through the transfer of value and information among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It operates VisaNet, a processing network that enables authorization, clearing, and settlement of payment transactions; and offers fraud protection for account holders and assured payment for merchants.

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