Finance

What Recent Ownership Trends Suggest About Visa Inc. (V)’s Future Performance

Recent insider trends for Visa Inc. (NYSE:V) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. V’s insider trading patterns have some implications for where the stock might be headed.

Institutions own 95.03% of Visa Inc. (V)’s shares. The total value of these holdings, in millions, is $187,129. Among active positions in the latest quarter, 831 holders increased their positions by a total of 59.99 million shares, 848 holders decreased the positions by a total of 73.1 million shares, and 218 holders held their positions. This works out to a net decrease in ownership of 13.12 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 131 holders initiated new positions by a total of 11.52 million shares and 60 holders exited their positions by a total of 3.37 million shares. This nets out to an increase of 8.15 million shares and is a bullish sign for V.

In the last three months, insiders executed a total of 23 trades. 7 of these were buys and 16 were sells. Insider ownership decreased by a total of 138945 shares, which suggests that V’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 7 buys and 28 sells, and ownership decreased by a net of 411018 shares.



Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. Visa Inc. (NYSE:V)’s short interest is 29.29 million shares, or 1.58% of the float. This represents an increase of 6% in the number of shares being shorted compared to the previous reading, and implies that investors felt more pessimistic about the stock during the past two weeks.

Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that V is a Weak buy, which implies that V is expected to outperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Visa Inc. (NYSE:V) is undervalued.

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