When looking at valuations, Visa Inc. (V) has a cheap P/E of 30.27x as compared to industry average of 32.59x. It trades for 22.85 times the next 12 months of expected earnings. It is trading at rather expensive levels at just over 10.86x price/book and 14.53x price/sales. Compared to others, Visa Inc. is in a different league with regards to profitability, having net margins of 48.8%. To put some perspective around this, the industry’s average net margin is 24.92%. V’s ROE is 36.5%, which is considerably better than the industry’s ROE of 20.34%. It’s very liquid in the near term, with a current ratio of 1.5. The stock has a debt/capital of 0.
Visa Inc. (NYSE:V) is now worth $308.88B thanks to 0.3% gain in recent trade and currently has a price tag of $140.8. The shares traded as low as $140.45 and had $142.2877 an intraday high earlier Monday. Trading activity significantly weakened as the volume at ready counter decreased to 7,477,869 shares versus 8,867,430 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 9,184,436 shares. The stock is now 26.82% above against its bear-market low of $111.02 on March 28, 2018. It has retreated -7.64% since it’s 52-week high of $151.56 reached in October. Now the market price is up 23.66% on the year and up 6.72% YTD.
V’s 50 day simple moving average (SMA 50) price is $136.33 and its 200-day simple moving average (SMA 200) price is $137.83. The company’s stock currently has a total float of 1.75B shares. Its weekly volatility is hovering around 1.15% and felt 1.56% volatility in price over a month. On the upside, the share price will test short term resistance at around $141.91. On a downside, the stock is likely to find some support, which begins at $140.07. The failure to get near-term support could push it to $139.34.
Separately, it has been reported that multiple insider activity took place at Visa Inc. (V). VICE CHAIRMAN & CRO Richey Ellen sold 81,005 shares for $28,923 in transaction occurred on 2019/02/07. After making this transaction, the VICE CHAIRMAN & CRO owns a direct stake of 11,339,890 shares, worth $4,072,358, as per the last closing price. On 2018/12/03 Sheedy William M., EVP CORP STRAT, M&A, GR at V, dumped 13,864 shares at an average price of $144.97 per share. The selling total is valued at $36,263,603.
SVP, GBL CORP CONTRL & CAO, Hoffmeister James H had divested 2,252 shares through a trade on 2018/12/03. Following this activity, the insider holds 325,549 shares. Wall Street’s most bullish Visa Inc. (NYSE:V) analysts are predicting the share price to blow past $196 per share during the next 12 months. The current median share price forecast by them is $161.5, suggesting that the stock could increase 14.7% in that time frame. The average price target of $162.39 calls for a nearly 15.33% increase in the stock price.
It had seen a new analyst call from Jefferies, which initiated the stock at Buy on January 29. Analysts at Raymond James, started covering the stock on July 24 with a Outperform rating. Analysts at UBS, made their first call about the stock on May 18, recommending it is Neutral. Bernstein, released new analyst coverage on March 28, calling the stock is Outperform.
V last reported earnings on January 30, 2019 when it released Dec-18 results that exceeded expectations. The company raked in $1.3 per share, -66.92% change on the same period last year. That was better than consensus for $1.25. Revenue for the recent quarter stood at $5.51 billion, up 13% on last year and above the $5.41 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $5.9 billion to $6.35 billion, which should be compared with $5.96 billion generated last year. EPS is seen in a range of $1.41 to $1.53, against the $1.44 reported a year ago.