Visa Stock Weighed Down by Transaction Volume Woes

Visa stock has fallen 23% from a recent all-time high

Deputy Editor
Mar 31, 2020 at 9:57 AM
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As the coronavirus pandemic wreaks havoc on the global economy, Visa Inc (NYSE:V) announced its transaction volumes have taken a major hit, as consumer spending falls off sharply. Additionally, the company forecast single-digit percentage revenue growth for the second quarter, which prompted price-target cuts from Instinet and Suntrust Robinson to $197 and $190, respectively. As of this morning, V stock is down 2.1% to trade at $162.30.

Visa stock has fallen 23% since hitting an all-time high of $214.17 last month, guided lower during the coronavirus outbreak by its descending 20-day moving average. Still, the security has found a silver lining in its 4% year-over-year gain, and is comfortably distant from its March 20 annual low of $133.93.

Analysts are more than a little optimistic on Visa stock. Of the 25 analysts in coverage, an astounding 23 rate the equity as a “buy,” with no "sells" on the books. Meanwhile, the consensus 12-month price target of $205.94 is a 24.4% premium to its current levels.

In the options pits, calls are the preferred move. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Visa sports a 50-day call/put volume ratio of 1.74. That ratio sits higher than 76% of readings from the past year, suggesting greater-than-usual call volume in the last two months.

 

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