Mastercard (NYSE:MA) Trading Down 0.1% – Here’s Why

Mastercard Incorporated (NYSE:MA)’s stock price was down 0.1% during mid-day trading on Monday . The company traded as low as $499.92 and last traded at $504.02. Approximately 1,099,640 shares changed hands during trading, a decline of 51% from the average daily volume of 2,264,802 shares. The stock had previously closed at $504.67.

Analysts Set New Price Targets

Several research firms have commented on MA. Royal Bank of Canada restated an “outperform” rating and issued a $572.00 target price on shares of Mastercard in a research note on Thursday, November 14th. Oppenheimer reduced their target price on shares of Mastercard from $591.00 to $588.00 and set an “outperform” rating for the company in a report on Thursday, December 19th. Susquehanna lifted their price target on shares of Mastercard from $540.00 to $605.00 and gave the company a “positive” rating in a research note on Friday, November 1st. Barclays boosted their price target on shares of Mastercard from $536.00 to $576.00 and gave the stock an “overweight” rating in a research report on Thursday, October 10th. Finally, BMO Capital Markets lifted their target price on Mastercard from $550.00 to $565.00 and gave the company an “outperform” rating in a research report on Thursday, November 14th. Three equities research analysts have rated the stock with a hold rating, twenty-two have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $566.13.

Mastercard Price Performance

The firm has a market capitalization of $463.80 billion, a P/E ratio of 38.22, a P/E/G ratio of 2.36 and a beta of 1.10. The company has a 50 day moving average of $524.09 and a 200-day moving average of $492.31. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 2.36.

Mastercard (NYSE:MA) last issued its quarterly 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 business had revenue of $7.37 billion for the quarter, compared to the consensus estimate of $7.27 billion. Mastercard had a return on equity of 178.27% and a net margin of 45.26%. The firm’s quarterly revenue was up 12.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted $3.39 earnings per share. On average, sell-side analysts predict that Mastercard Incorporated will post 14.47 EPS for the current year.

Mastercard Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 7th. Investors of record on Thursday, January 9th will be given a dividend of $0.76 per share. This is a boost from Mastercard’s previous quarterly dividend of $0.66. The ex-dividend date of this dividend is Friday, January 10th. This represents a $3.04 annualized dividend and a yield of 0.60%. Mastercard’s dividend payout ratio is currently 23.00%.

Mastercard declared that its board has initiated a share buyback 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 usually an indication that the company’s leadership believes its stock is undervalued.

Hedge Funds Weigh In On Mastercard

Large investors have recently bought and sold shares of the company. J.W. Cole Advisors Inc. raised its position in shares of Mastercard by 25.7% during the second quarter. J.W. Cole Advisors Inc. now owns 4,678 shares of the credit services provider’s stock worth $2,064,000 after purchasing an additional 956 shares during the period. Lyell Wealth Management LP increased its stake in Mastercard by 19.4% in the 2nd quarter. Lyell Wealth Management LP now owns 13,749 shares of the credit services provider’s stock valued at $6,065,000 after buying an additional 2,235 shares during the last quarter. Diversify Wealth Management LLC bought a new position in shares of Mastercard during the 2nd quarter worth approximately $3,402,000. MayTech Global Investments LLC boosted its stake in shares of Mastercard by 1.9% in the 2nd quarter. MayTech Global Investments LLC now owns 65,736 shares of the credit services provider’s stock worth $29,000,000 after buying an additional 1,249 shares during the last quarter. Finally, WINTON GROUP Ltd bought a new position in shares of Mastercard in the second quarter valued at approximately $5,102,000. 97.28% of the stock is currently owned by 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.