Visa Inc. (V): What’s Behind The Signals?

A handful of technical analysis tools are suggesting that Visa Inc. (NYSE:V) overall gets 8% Sell rating. The stock is also flashing a Hold from the Barchart TrendSpotter trading system. Traders hoping to speculate on the V’s short-term trajectory should know that short terms indicators for the stock averaged 0% Hold with an average daily trading volume over the past 20 days at 10316479 shares. V stock has overall a 0.25% Buy signal considering medium term indicators and the 50-day average daily volume remained almost 10445542 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 8851688 shares, is 67% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $135.98. Below this, the next support is placed in the zone of $130.92. Till the time, the V stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 52.16 on daily chart, which may remain a cause for concern. If the price breaks below $130.92 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $143.61 mark may result into a pull-back move towards $146.18 level.

Visa Inc. (V) is projected to climb by 16.65 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $196-month high price target. This represents a whopping 38.96 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $165, which represents a return potential of 16.98 percent when compared to the closing price of the stock of $141.05 on Thursday, December 06. The lowest price target for the stock is $144 — slightly more than 2.09 percent from V’s current share price.

Here’s a rundown of insider trading activity for sense of Visa Inc. (NYSE:V). The earliest insider trade took place on 12/03/2018. Sheedy William M. parted with a total of 13.86 thousand shares of company at average share price of $144.97. The total for the sales was set at $2.01 million. After this transaction, the EVP CORP STRAT, M&A, GR account balance stood at 257.55 thousand shares. The stock lost -4.37 percent since that insider sale. On 12/03/2018, Hoffmeister James H, SVP, GBL CORP CONTRL & CAO, sold 2.25 thousand shares at a price per share of $144.56. This removed 325.55 thousand shares from the insider’s fortune and the stock saw a -4.1 percent retreat in value since the news became public. This transaction left 0 thousand shares in the SVP, GBL CORP CONTRL & CAO account. On 11/20/2018, EVP CORP STRAT, M&A, GR Sheedy William M. performed a sale transaction worth $484.77 thousand. This sale at $133.07 each has eliminated 3.64 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 4.19 percent increase since the transaction was reported. The insider now is left with 243.03 thousand shares remaining in the account. Sheedy William M., who performs the EVP CORP STRAT, M&A, GR job, sold 99.64 thousand shares for $13.88 million. The disposal occurred on 11/02/2018 was priced at $139.28 per share. The share price plunged -0.46 percent since the reporting date. Sheedy William M. now left with a stake of 239.62 thousand V stock worth $33.8 million after the insider selling.

V shares accumulated 2.41 points or 1.74 percent on Thursday to $141.05 with a heavy trade volume of 16.3 million shares. After opening the session at $135.04, the shares went as high as $141.11 and as low as $133.48, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $306 billion and now has 2.17 billion shares outstanding. Visa Inc. (V) stock has gained 0.89 percent of market value in 21 trading days.

Analysts at Raymond James, assumed coverage of Visa Inc. (NYSE:V) with Outperform recommendation, according to their opinion released on July 24.

V stock has a trailing 3-year beta of 1.11, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.94 a share in the trailing twelve months. The stock’s value has surged 23.71 percent year to date (YTD) against a rise of 29.9 percent in 12 month’s time. The company’s shares still trade -6.93 percent away from its 1-year high of $151.56 and 32.32 percent up from 52-week low of $106.60. The average consensus rating on the company is 1.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Visa Inc. (V) are trading at a P/E ratio of 34.47 times earnings reported for the past 12 months. The industry V operates in has an average P/E of 25.67. Its P/E ratio went as low as 24.76X and as high as 38.13 over the 5-year span. Further, it is sporting a 14.83 on the Price-to-Sales ratio. Compare this with the industry average P/S of 5.62. 0 percent is the gross profit margin for Visa Inc. and operating margin sits at 62.9 percent. Along with this, the net profit margin is 48.2 percent.

V will be declaring its Q1 financial results on January 31. Analysts are forecasting revenue to climb 11.3 percent to $5.41B in the next fiscal quarter, while earnings are seen soaring by nearly 15.74 percent to $1.25 per share. History has shown that shares in Visa Inc. have gone down on 18 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.21 per share, better than the $1.2, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $5.43B, worse than the $5.44B analysts expected. Earnings are estimated to increase by 40.7 percent this year, 16.45 percent next year and continue to increase by 17.99 percent annually for the next 5 years.