At Visa, KELLY TULLIER MAHON Chooses To Exercise Options, Resulting In $5.21M

A substantial insider activity was disclosed on August 20, as MAHON, Vice Chair at Visa V, reported the exercise of a large sell of company stock options.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that MAHON, Vice Chair at Visa, a company in the Financials sector, just exercised stock options worth 27,707 shares of V stock with an exercise price of $80.82.

Visa shares are trading up 0.33% at $268.94 at the time of this writing on Wednesday morning. Since the current price is $268.94, this makes MAHON's 27,707 shares worth $5,212,102.

Get to Know Visa Better

Visa is the largest payment processor in the world. In fiscal 2023, it processed almost $15 trillion in total volume. Visa operates in over 200 countries and processes transactions in over 160 currencies. Its systems are capable of processing over 65,000 transactions per second.

Visa's Financial Performance

Revenue Growth: Visa displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 9.57%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company maintains a high gross margin of 80.08%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Visa's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 2.4.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.54.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: Visa's P/E ratio of 28.7 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 15.69, Visa's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 21.22, Visa demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Why Pay Attention to Insider Transactions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Transaction Codes To Focus On

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Visa's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.