Mastercard (NYSE:MA) Trading Down 0% – What’s Next?

Mastercard Incorporated (NYSE:MA)’s share price dropped 0% during trading on Thursday . The stock traded as low as $525.25 and last traded at $526.56. Approximately 905,742 shares changed hands during trading, a decline of 63% from the average daily volume of 2,467,849 shares. The stock had previously closed at $526.57.

Wall Street Analysts Forecast Growth

Several research firms have commented on MA. Morgan Stanley upped their target price on shares of Mastercard from $564.00 to $654.00 and gave the stock an “overweight” rating in a research report on Wednesday, December 18th. Macquarie raised their target price on Mastercard from $505.00 to $565.00 and gave the company an “outperform” rating in a research report on Friday, November 1st. Bank of America lifted their target price on Mastercard from $480.00 to $509.00 and gave the company a “neutral” rating in a research note on Tuesday, September 17th. Royal Bank of Canada reissued an “outperform” rating and issued a $572.00 price target on shares of Mastercard in a research note on Thursday, November 14th. Finally, Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Mastercard from $510.00 to $580.00 and gave the company a “buy” rating in a research note on Friday, November 1st. Three equities research analysts have rated the stock with a hold rating, twenty-three have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $562.76.

Mastercard Stock Performance

The firm’s fifty day simple moving average is $523.58 and its 200 day simple moving average is $489.72. 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 company has a market capitalization of $478.52 billion, a price-to-earnings ratio of 39.44, a PEG ratio of 2.36 and a beta of 1.10.

Mastercard (NYSE:MA) last posted its quarterly earnings data on Thursday, October 31st. The credit services provider reported $3.89 earnings per share for the quarter, topping the consensus estimate of $3.73 by $0.16. The firm 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 company’s quarterly revenue was up 12.8% compared to the same quarter last year. During the same period in the previous year, the company posted $3.39 EPS. On average, sell-side analysts forecast that Mastercard Incorporated will post 14.47 EPS for the current year.

Mastercard Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, February 7th. Investors of record on Thursday, January 9th will be paid a $0.76 dividend. This is an increase from Mastercard’s previous quarterly dividend of $0.66. This represents a $3.04 annualized dividend and a yield of 0.58%. The ex-dividend date of this dividend is Friday, January 10th. Mastercard’s dividend payout ratio is currently 23.00%.

Mastercard declared that its Board of Directors has authorized a share repurchase plan 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 reacquire up to 2.5% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Mastercard

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

About Mastercard

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.