Brokerages Set Mastercard Incorporated (NYSE:MA) Price Target at $559.28

Mastercard Incorporated (NYSE:MA) has earned an average rating of “Moderate Buy” from the twenty-eight research firms that are presently covering the stock, MarketBeat.com reports. Four equities research analysts have rated the stock with a hold rating, twenty-three have assigned a buy rating and one has issued a strong buy rating on the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $559.28.

MA has been the subject of several research reports. Keefe, Bruyette & Woods upped their price objective on shares of Mastercard from $580.00 to $618.00 and gave the company an “outperform” rating in a research note on Monday, December 9th. Compass Point initiated coverage on Mastercard in a research report on Wednesday, September 4th. They issued a “neutral” rating and a $525.00 price target for the company. Piper Sandler reiterated an “overweight” rating and set a $575.00 price objective (up previously from $565.00) on shares of Mastercard in a research report on Friday, November 15th. Jefferies Financial Group upped their target price on Mastercard from $590.00 to $610.00 and gave the company a “buy” rating in a report on Monday, December 9th. Finally, Barclays raised their target price on Mastercard from $536.00 to $576.00 and gave the stock an “overweight” rating in a research note on Thursday, October 10th.

Mastercard Stock Performance

Shares of NYSE:MA opened at $531.01 on Wednesday. The business’s 50 day moving average price is $518.69 and its 200-day moving average price is $482.89. Mastercard has a 1 year low of $416.53 and a 1 year high of $536.75. The company has a debt-to-equity ratio of 2.36, a current ratio of 1.29 and a quick ratio of 1.29. The firm has a market capitalization of $487.38 billion, a PE ratio of 40.17, a P/E/G ratio of 2.38 and a beta of 1.10.

Mastercard (NYSE:MA) last announced its earnings results on Thursday, October 31st. The credit services provider reported $3.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.73 by $0.16. The company had revenue of $7.37 billion for the quarter, compared to analysts’ expectations of $7.27 billion. Mastercard had a net margin of 45.26% and a return on equity of 178.27%. The firm’s quarterly revenue was up 12.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $3.39 EPS. As a group, equities research analysts expect that Mastercard will post 14.47 earnings per share for the current fiscal year.

Mastercard declared that its board has initiated a stock buyback program 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 programs are generally an indication that the company’s management believes its shares are undervalued.

Mastercard Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, February 7th. Stockholders of record on Thursday, January 9th will be given a dividend of $0.76 per share. This is a positive change from Mastercard’s previous quarterly dividend of $0.66. This represents a $3.04 annualized dividend and a dividend yield of 0.57%. Mastercard’s dividend payout ratio (DPR) is currently 19.97%.

Insider Activity at Mastercard

In other Mastercard news, CMO Venkata R. Madabhushi sold 4,685 shares of the firm’s stock in a transaction that occurred on Friday, September 20th. The shares were sold at an average price of $489.86, for a total value of $2,294,994.10. Following the completion of the transaction, the chief marketing officer now owns 15,031 shares of the company’s stock, valued at $7,363,085.66. This trade represents a 23.76 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 0.10% of the stock is currently owned by company insiders.

Institutional Trading of Mastercard

Several hedge funds have recently modified their holdings of MA. Goldstein Advisors LLC lifted its stake in Mastercard by 1.3% during the third quarter. Goldstein Advisors LLC now owns 1,516 shares of the credit services provider’s stock valued at $749,000 after purchasing an additional 20 shares during the last quarter. Community Bank N.A. increased its holdings in shares of Mastercard by 0.9% in the third quarter. Community Bank N.A. now owns 2,190 shares of the credit services provider’s stock valued at $1,081,000 after buying an additional 20 shares in the last quarter. Raab & Moskowitz Asset Management LLC lifted its position in shares of Mastercard by 1.5% during the 3rd quarter. Raab & Moskowitz Asset Management LLC now owns 1,398 shares of the credit services provider’s stock valued at $690,000 after acquiring an additional 20 shares during the last quarter. McLean Asset Management Corp boosted its stake in shares of Mastercard by 1.3% during the 3rd quarter. McLean Asset Management Corp now owns 1,677 shares of the credit services provider’s stock worth $834,000 after acquiring an additional 21 shares in the last quarter. Finally, Oldfather Financial Services LLC grew its holdings in shares of Mastercard by 2.6% in the 3rd quarter. Oldfather Financial Services LLC now owns 827 shares of the credit services provider’s stock worth $408,000 after acquiring an additional 21 shares during the last quarter. 97.28% of the stock is currently owned by institutional investors and hedge funds.

Mastercard Company Profile

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.