Mastercard (NYSE:MA) Trading 0.4% Higher – Time to Buy?

Mastercard Incorporated (NYSE:MA)’s share price traded up 0.4% on Tuesday . The company traded as high as $529.19 and last traded at $527.84. 237,224 shares traded hands during mid-day trading, a decline of 90% from the average session volume of 2,460,970 shares. The stock had previously closed at $525.55.

Analyst Ratings Changes

Several analysts have issued reports on the stock. William Blair reissued an “outperform” rating on shares of Mastercard in a research note on Monday, November 25th. Citigroup raised their price target on Mastercard from $566.00 to $572.00 and gave the stock a “buy” rating in a research note on Monday, November 4th. Susquehanna upped their price objective on Mastercard from $540.00 to $605.00 and gave the company a “positive” rating in a research report on Friday, November 1st. Deutsche Bank Aktiengesellschaft lifted their target price on Mastercard from $510.00 to $580.00 and gave the stock a “buy” rating in a research report on Friday, November 1st. Finally, Compass Point initiated coverage on shares of Mastercard in a report on Wednesday, September 4th. They issued a “neutral” rating and a $525.00 price target on the stock. Three investment analysts have rated the stock with a hold rating, twenty-three have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $562.76.

Mastercard Stock Performance

The company has a market capitalization of $484.17 billion, a PE ratio of 39.90, a PEG ratio of 2.36 and a beta of 1.10. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 2.36. The business has a 50 day simple moving average of $522.32 and a 200 day simple moving average of $487.57.

Mastercard (NYSE:MA) last announced its quarterly earnings data on Thursday, October 31st. The credit services provider reported $3.89 EPS for the quarter, beating the consensus estimate of $3.73 by $0.16. Mastercard had a net margin of 45.26% and a return on equity of 178.27%. The firm had revenue of $7.37 billion during the quarter, compared to analyst estimates of $7.27 billion. During the same period last year, the firm posted $3.39 EPS. Mastercard’s revenue was up 12.8% on a year-over-year basis. Equities research analysts predict that Mastercard Incorporated will post 14.47 EPS for the current fiscal year.

Mastercard Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, February 7th. Investors of record on Thursday, January 9th will be issued a dividend of $0.76 per share. This is an increase from Mastercard’s previous quarterly dividend of $0.66. The ex-dividend date is Thursday, January 9th. This represents a $3.04 dividend on an annualized basis and a dividend yield of 0.58%. Mastercard’s payout ratio is 23.00%.

Mastercard declared that its Board of Directors has authorized a stock buyback program on Tuesday, December 17th that allows the company to repurchase $12.00 billion in outstanding shares. This repurchase authorization allows the credit services provider to buy up to 2.5% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

Institutional Investors Weigh In On Mastercard

Several hedge funds have recently added to or reduced their stakes in MA. Temasek Holdings Private Ltd increased its holdings in shares of Mastercard by 2.3% during the 3rd quarter. Temasek Holdings Private Ltd now owns 2,805,554 shares of the credit services provider’s stock valued at $1,385,383,000 after purchasing an additional 62,891 shares in the last quarter. Sarasin & Partners LLP increased its holdings in Mastercard by 4.7% in the third quarter. Sarasin & Partners LLP now owns 831,942 shares of the credit services provider’s stock valued at $410,813,000 after buying an additional 37,486 shares in the last quarter. Charles Schwab Investment Management Inc. raised its position in shares of Mastercard by 2.0% in the third quarter. Charles Schwab Investment Management Inc. now owns 5,010,430 shares of the credit services provider’s stock worth $2,474,151,000 after acquiring an additional 100,550 shares during the period. Principal Financial Group Inc. boosted its stake in shares of Mastercard by 4.8% during the 3rd quarter. Principal Financial Group Inc. now owns 3,031,915 shares of the credit services provider’s stock worth $1,497,160,000 after acquiring an additional 138,842 shares in the last quarter. Finally, Itau Unibanco Holding S.A. acquired a new stake in shares of Mastercard during the 2nd quarter valued at about $6,850,000. 97.28% of the stock is owned by hedge funds and other institutional investors.

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.