Mastercard (NYSE:MA) Trading 0.6% Higher – Here’s Why

by · The Markets Daily

Mastercard Incorporated (NYSE:MA – Get Free Report) was up 0.6% during trading on Tuesday . The stock traded as high as $516.05 and last traded at $515.07. Approximately 442,855 shares changed hands during mid-day trading, a decline of 77% from the average daily volume of 1,922,547 shares. The stock had previously closed at $511.93.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the company. Keefe, Bruyette & Woods upped their price target on Mastercard from $580.00 to $618.00 and gave the stock an “outperform” rating in a report on Monday, December 9th. KeyCorp upped their price objective on shares of Mastercard from $515.00 to $580.00 and gave the company an “overweight” rating in a research report on Friday, November 1st. UBS Group lifted their target price on Mastercard from $590.00 to $610.00 and gave the stock a “buy” rating in a research report on Thursday, November 14th. Barclays boosted their price target on Mastercard from $536.00 to $576.00 and gave the company an “overweight” rating in a research note on Thursday, October 10th. Finally, Bank of America raised their price objective on Mastercard from $480.00 to $509.00 and gave the stock a “neutral” rating in a research report on Tuesday, September 17th. Three research analysts have rated the stock with a hold rating, twenty-three have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, Mastercard has a consensus rating of “Moderate Buy” and a consensus target price of $562.76.

Get Our Latest Stock Report on MA

Mastercard Trading Up 0.9 %

The company’s 50-day moving average is $523.81 and its 200-day moving average is $491.27. The company has a debt-to-equity ratio of 2.36, a quick ratio of 1.29 and a current ratio of 1.29. The firm has a market cap of $473.66 billion, a price-to-earnings ratio of 39.04, a P/E/G ratio of 2.36 and a beta of 1.10.

Mastercard (NYSE:MA – Get Free Report) last announced its earnings results on Thursday, October 31st. The credit services provider reported $3.89 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.73 by $0.16. The company had revenue of $7.37 billion for the quarter, compared to analyst estimates of $7.27 billion. Mastercard had a net margin of 45.26% and a return on equity of 178.27%. Mastercard’s quarterly revenue was up 12.8% on a year-over-year basis. During the same period in the prior year, the business earned $3.39 earnings per share. On average, research analysts predict that Mastercard Incorporated will post 14.47 earnings per share for the current year.

Mastercard Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, February 7th. Stockholders of record on Thursday, January 9th will be paid a $0.76 dividend. This is a boost from Mastercard’s previous quarterly dividend of $0.66. This represents a $3.04 annualized dividend and a dividend yield of 0.59%. The ex-dividend date is Friday, January 10th. Mastercard’s dividend payout ratio (DPR) is 23.00%.

Mastercard declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, December 17th that permits the company to buyback $12.00 billion in outstanding shares. This buyback authorization permits the credit services provider to reacquire up to 2.5% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s leadership believes its stock is undervalued.

Institutional Investors Weigh In On Mastercard

Several institutional investors have recently modified their holdings of the business. First Hawaiian Bank boosted its stake in Mastercard by 23.2% in the fourth quarter. First Hawaiian Bank now owns 11,959 shares of the credit services provider’s stock valued at $6,297,000 after acquiring an additional 2,255 shares during the last quarter. Private Client Services LLC boosted its position in shares of Mastercard by 6.7% in the 4th quarter. Private Client Services LLC now owns 832 shares of the credit services provider’s stock worth $438,000 after purchasing an additional 52 shares during the last quarter. Innova Wealth Partners acquired a new stake in shares of Mastercard during the fourth quarter worth $200,000. Range Financial Group LLC increased its holdings in Mastercard by 155.1% in the fourth quarter. Range Financial Group LLC now owns 1,069 shares of the credit services provider’s stock valued at $563,000 after purchasing an additional 650 shares during the last quarter. Finally, One Wealth Capital Management LLC acquired a new position in Mastercard in the fourth quarter valued at about $1,278,000. Institutional investors and hedge funds own 97.28% of the company’s stock.

About Mastercard

(Get Free Report)

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers integrated products and value-added services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; and commercial credit, debit, and prepaid payment products and solutions.

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