Visa Inc.'s (NYSE:V)) market cap declines to US$368b but insiders who sold US$637k stock were able to hedge their losses




  • In Business
  • 2022-10-02 11:01:02Z
  • By Simply Wall St.
 

Insiders at Visa Inc. (NYSE:V) sold US$637k worth of stock at an average price of US$223 a share over the past year, making the most of their investment. The company's market valuation decreased by US$13b after the stock price dropped 3.4% over the past week, but insiders were spared from painful losses.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Visa

The Last 12 Months Of Insider Transactions At Visa

Over the last year, we can see that the biggest insider sale was by the insider, James Hoffmeister, for US$402k worth of shares, at about US$231 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$178. So it is hard to draw any strong conclusion from it.

Visa insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Visa insiders own about US$183m worth of shares (which is 0.05% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Visa Insiders?

The fact that there have been no Visa insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Visa insiders selling. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Visa.

Of course Visa may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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