Visa Inc. (NYSE: V) has received a consensus rating of “Moderate Buy” from twenty-six analysts, according to a report by Marketbeat. This assessment reflects a mix of ratings, with five analysts recommending a hold, seventeen endorsing a buy, and four issuing a strong buy rating. The average target price set by these analysts is an optimistic $400.00 for the next twelve months.
Several investment firms have recently updated their ratings for Visa. On October 23, 2023, Citigroup upgraded Visa’s shares to a “strong-buy” rating. Following closely, on October 29, Morgan Stanley established a price target of $398.00 with an “overweight” rating. Also on that date, Wells Fargo & Company raised Visa to a “strong-buy” status. In contrast, Macquarie adjusted its target price from $425.00 to $410.00 while maintaining an “outperform” rating. UBS Group set a target price of $425.00 for the stock, affirming a buy rating.
Financial Performance and Dividend Announcement
On October 28, 2023, Visa announced its quarterly earnings, reporting an earnings per share (EPS) of $2.98, surpassing analysts’ expectations of $2.97. The company generated revenue of $10.72 billion for the quarter, exceeding the forecast of $10.60 billion. Visa showcased a remarkable return on equity of 60.31% and a net margin of 50.15%, with revenue increasing 11.5% year-over-year. This performance reflects a solid growth trajectory, especially compared to last year’s EPS of $2.71. Analysts predict that Visa will achieve an EPS of 11.3 for the current fiscal year.
In addition to its financial results, Visa announced an increase in its quarterly dividend. Shareholders recorded by November 12, 2023, will receive a dividend of $0.67 per share, marking a rise from the previous $0.59 dividend. This translates to an annualized dividend of $2.68 and a yield of 0.8%. The ex-dividend date is scheduled for November 12, 2023, and the company’s dividend payout ratio currently stands at 26.25%.
Insider Transactions and Institutional Investments
Recent insider activity includes a sale by Director Lloyd Carney, who sold 900 shares on November 4, 2023, at an average price of $336.48, totaling $302,832.00. Following this transaction, Carney retains 2,468 shares valued at approximately $830,432.64, representing a 26.72% decrease in his ownership.
Another significant transaction involved insider Paul D. Fabara, who sold 2,172 shares on November 21, 2023, at an average price of $325.93, amounting to $707,919.96. Post-sale, Fabara owns 26,413 shares valued at $8,608,789.09, indicating a 7.60% reduction in holdings. Over the past three months, insiders have sold a total of 24,042 shares worth $8,175,152.
Institutional investments in Visa remain robust, with notable movements recently. For instance, BankPlus Wealth Management LLC increased its stake by 0.9% in the second quarter, now holding 3,338 shares valued at $1,185,000. Similarly, Transcendent Capital Group LLC raised its holdings by 2.9%, owning 1,013 shares worth $360,000. Notably, institutional investors collectively own 82.15% of Visa’s equity.
Visa Inc. operates as a payment technology company, managing the VisaNet transaction processing network that supports payment transaction authorization, clearing, and settlement. The company provides diverse services, including credit, debit, and prepaid card products, as well as various digital payment solutions. With its robust financial performance and positive analyst ratings, Visa continues to solidify its position in the global payment landscape.
