A better buy-in window may exist right now for Visa Inc. (V)

Visa Inc. (NYSE: V) stock fell -2.41% on Friday to $206.26 against a previous-day closing price of $211.36. With 9.93 million shares changed hands, the volume of the stock remained heavier than its average volume of 6.77 million shares. During the session, the Credit Services company that operates in wider Financial sector, reached to the highest price of $208.84 whereas the lowest price it dropped to was $203.93. The 52-week range on V shows that it touched its highest point at $247.83 and its lowest point at $185.91 during that stretch. It currently has a 1-year price target of $259.96. With its current market cap of 424.57 billion, V has annualized dividend of $1.50 while the current yield stands at 0.73%. Beta for the stock currently stands at 0.89.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of V was down-trending over the past week, with a drop of -2.93%, but this was up by 3.55% over a month. Three-month performance dropped to -2.49% while six-month performance fell -8.80%. The stock lost -13.98% in the past year, while it has lost -4.82% so far this year. A look at the trailing 12-month EPS for V yields 6.52 with Next year EPS estimates of 8.42. For the next quarter, that number is 1.86. This implies an EPS growth rate of 15.10% for this year and 14.32% for next year. EPS is expected to grow by 19.20% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 17.80%.

Float and Shares Shorts:

At present, 2.08 billion V shares are outstanding with a float of 1.63 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 34.26 million, which was 1.62% higher than short shares on Jun 14, 2022. In addition to Mr. Alfred Francis Kelly Jr. as the firm’s Chairman & CEO, Mr. Ryan M. McInerney serves as its Pres.

Institutional Ownership:

Through their ownership of 97.79% of V’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 48.88% of V, in contrast to 47.91% held by mutual funds. Shares owned by individuals account for 0.22%. As the largest shareholder in V with 8.31% of the stake, The Vanguard Group, Inc. holds 136,813,171 shares worth 136,813,171. A second-largest stockholder of V, BlackRock Fund Advisors, holds 78,812,040 shares, controlling over 4.79% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in V, holding 73,178,816 shares or 4.45% stake. With a 2.94% stake in V, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 48,299,101 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.20% of V stock, is the second-largest Mutual Fund holder. It holds 36,176,263 shares valued at 7.12 billion. SPDR S&P 500 ETF Trust holds 1.08% of the stake in V, owning 17,775,277 shares worth 3.5 billion.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for V since 36 analysts follow the stock currently. There are 25 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 7 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With V analysts setting a high price target of $296.00 and a low target of $204.00, the average target price over the next 12 months is $257.78. Based on these targets, V could surge 43.51% to reach the target high and fall by -1.1% to reach the target low. Reaching the average price target will result in a growth of 24.98% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. V will report FY 2022 earnings on 10/26/2022. Analysts have provided yearly estimates in a range of $7.50 being high and $7.02 being low. For V, this leads to a yearly average estimate of $7.39. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Visa Inc. surprised analysts by $0.23 when it reported $1.98 EPS against a consensus estimate of $1.75. The surprise factor in the prior quarter was $0.14. Based on analyst estimates, the high estimate for the next quarter is $1.93 and the low estimate is $1.73. The average estimate for the next quarter is thus $1.86.

Summary of Insider Activity:

Insiders traded V stock several times over the past three months with 5 Buys and 4 Sells. In these transactions, 171,696 shares were bought while 178,636 shares were sold. The number of buy transactions has increased to 82 while that of sell transactions has risen to 47 over the past year. The total number of shares bought during that period was 612,110 while 507,694 shares were sold.

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