Visa Inc. (V) Insiders Are Selling, Here’s Why

At Visa Inc. (NYSE:V), the ratio of insider selling to insider buying over a quarter is running at 420.61. Could this be a sign something is bothering insiders? V recorded 17 sales count on the open market in the last three months. They sold nearly 312,091 shares while purchases amounted to 742 shares that period. Looking even further back to 12 months, corporate insiders offloaded 419,078 shares when buyers snapped up 742 shares. The 12-month’s totals signify about a 564.8-to-1 sell/buy ratio.

Sheedy William M. parted with a total of 13.86 thousand shares of Visa Inc. (V) at average share price of $144.97. This insider trade in the company took place on 12/03/2018. 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 -4.77 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 -4.5 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 3.75 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 -0.88 percent since the reporting date. Sheedy William M. now left with a stake of 239.62 thousand V stock worth $33.08 million after the insider selling.

The 12-month median price target for Visa Inc. (V) assigned by the analysts stands at $163, which represents a return potential of 18.06 percent when compared to the closing price of the stock of $138.06 on Friday, January 11. The lowest price target for the stock is $144 — slightly more than 4.3 percent from V’s current share price. The stock will probably climb 17.9 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 41.97 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 54.59 on daily chart, which may remain a cause for concern. If the price breaks below $136.83 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $138.64 mark may result into a pull-back move towards $139.21 level. The stock is currently hovering around the first support level of $137.45. Below this, the next support is placed in the zone of $136.83. Till the time, the V stock trades above this level, bulls have nothing to fear.

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.

On 11th of January, Visa Inc. (NYSE:V) shares ended lower after a volatile session. The shares dropped -0.61 points or -0.44 percent at $138.06 with a light trade volume of 5.837 million shares. After opening the session at $137.75, the shares went as high as $138.6 and as low as $137.41, 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 2.21 billion shares outstanding. Visa Inc. (V) stock has gained 0.91 percent of market value in 21 trading days.

V stock has a trailing 3-year beta of 1.06, 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 4.64 percent year to date (YTD) against a rise of 16.04 percent in 12 month’s time. The company’s shares still trade -8.91 percent away from its 1-year high of $151.56 and 24.36 percent up from 52-week low of $111.02. 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.