Zhang Financial LLC Grows Stock Position in Mastercard Incorporated (NYSE:MA)

Zhang Financial LLC increased its holdings in Mastercard Incorporated (NYSE:MA) by 5.4% in the 4th quarter, HoldingsChannel reports. The fund owned 1,730 shares of the credit services provider’s stock after purchasing an additional 89 shares during the quarter. Zhang Financial LLC’s holdings in Mastercard were worth $911,000 at the end of the most recent quarter.

Several other hedge funds also recently added to or reduced their stakes in MA. Highline Wealth Partners LLC acquired a new stake in shares of Mastercard during the third quarter valued at about $25,000. Strategic Investment Solutions Inc. IL purchased a new position in shares of Mastercard during the 2nd quarter worth approximately $34,000. First Personal Financial Services purchased a new stake in Mastercard in the third quarter valued at approximately $39,000. Lowe Wealth Advisors LLC lifted its stake in Mastercard by 74.0% during the third quarter. Lowe Wealth Advisors LLC now owns 87 shares of the credit services provider’s stock worth $43,000 after purchasing an additional 37 shares in the last quarter. Finally, FSA Wealth Management LLC purchased a new position in shares of Mastercard during the third quarter worth $54,000. 97.28% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the company. Susquehanna increased their target price on Mastercard from $540.00 to $605.00 and gave the stock a “positive” rating in a research note on Friday, November 1st. BMO Capital Markets increased their price target on shares of Mastercard from $550.00 to $565.00 and gave the stock an “outperform” rating in a research report on Thursday, November 14th. Piper Sandler restated an “overweight” rating and issued a $575.00 price objective (up previously from $565.00) on shares of Mastercard in a report on Friday, November 15th. Morgan Stanley increased their target price on shares of Mastercard from $564.00 to $654.00 and gave the stock an “overweight” rating in a report on Wednesday, December 18th. Finally, Oppenheimer dropped their price target on shares of Mastercard from $591.00 to $588.00 and set an “outperform” rating for the company in a research note on Thursday, December 19th. Four research analysts have rated the stock with a hold rating, twenty-two have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $566.63.

Mastercard Trading Up 0.4 %

NYSE:MA opened at $525.22 on Monday. The company has a market capitalization of $482.06 billion, a PE ratio of 39.73, a P/E/G ratio of 2.00 and a beta of 1.10. Mastercard Incorporated has a 52-week low of $427.45 and a 52-week high of $537.70. The stock’s 50 day moving average price is $524.28 and its 200 day moving average price is $494.59. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 2.36.

Mastercard (NYSE:MA) last announced its earnings results on Thursday, October 31st. The credit services provider reported $3.89 EPS for the quarter, beating analysts’ consensus estimates of $3.73 by $0.16. The business 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% on a year-over-year basis. During the same period in the previous year, the company posted $3.39 EPS. On average, research analysts anticipate that Mastercard Incorporated will post 14.46 EPS for the current year.

Mastercard Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, February 7th. Investors of record on Thursday, January 9th will be given a $0.76 dividend. This represents a $3.04 annualized dividend and a yield of 0.58%. The ex-dividend date is Friday, January 10th. This is a boost from Mastercard’s previous quarterly dividend of $0.66. Mastercard’s payout ratio is 19.97%.

Mastercard declared that its Board of Directors has authorized a stock repurchase plan on Tuesday, December 17th that authorizes the company to repurchase $12.00 billion in outstanding shares. This repurchase authorization authorizes the credit services provider to purchase up to 2.5% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its stock is undervalued.

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.