Mastercard (NYSE:MA) had its price objective reduced by Wells Fargo & Co from $235.00 to $228.00 in a research note issued to investors on Thursday, January 3rd. They currently have an outperform rating on the credit services provider’s stock.
Several other research firms have also recently issued reports on MA. Zacks Investment Research raised Mastercard from a hold rating to a buy rating and set a $216.00 price target on the stock in a report on Thursday, November 29th. Loop Capital set a $232.00 price target on Mastercard and gave the company a buy rating in a report on Wednesday, October 31st. Edward Jones upgraded shares of Mastercard from a hold rating to a buy rating in a research report on Wednesday, December 26th. Finally, Goldman Sachs Group upgraded shares of Mastercard from a buy rating to a conviction-buy rating in a report on Monday, September 17th. Three research analysts have rated the stock with a hold rating, twenty-six have assigned a buy rating and two have given a strong buy rating to the company’s stock. The company presently has a consensus rating of Buy and a consensus target price of $220.20.
NYSE:MA opened at $195.90 on Thursday. The stock has a market capitalization of $202.19 billion, a P/E ratio of 42.77, a PEG ratio of 1.43 and a beta of 1.13. Mastercard has a one year low of $156.80 and a one year high of $225.35. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.55 and a quick ratio of 1.55.
Mastercard (NYSE:MA) last issued its earnings results on Tuesday, October 30th. The credit services provider reported $1.78 EPS for the quarter, beating the Zacks’ consensus estimate of $1.68 by $0.10. The company had revenue of $3.90 billion during the quarter, compared to the consensus estimate of $3.86 billion. Mastercard had a return on equity of 114.58% and a net margin of 35.88%. Mastercard’s quarterly revenue was up 14.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.34 earnings per share. On average, analysts predict that Mastercard will post 6.44 EPS for the current year.
The company also recently announced a quarterly dividend, which will be paid on Friday, February 8th. Stockholders of record on Wednesday, January 9th will be issued a $0.33 dividend. The ex-dividend date of this dividend is Tuesday, January 8th. This represents a $1.32 annualized dividend and a dividend yield of 0.67%. This is an increase from Mastercard’s previous quarterly dividend of $0.25. Mastercard’s dividend payout ratio is currently 28.82%.
Mastercard declared that its board has authorized a stock buyback plan on Tuesday, December 4th that authorizes the company to buyback $6.50 billion in shares. This buyback authorization authorizes the credit services provider to reacquire shares of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board believes its shares are undervalued.
In related news, Director Richard K. Davis purchased 2,475 shares of the firm’s stock in a transaction that occurred on Friday, November 2nd. The shares were bought at an average price of $196.37 per share, for a total transaction of $486,015.75. Following the acquisition, the director now owns 3,468 shares of the company’s stock, valued at approximately $681,011.16. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Richard Haythornthwaite sold 5,000 shares of the firm’s stock in a transaction dated Monday, December 17th. The shares were sold at an average price of $192.00, for a total value of $960,000.00. Following the sale, the director now directly owns 40,183 shares in the company, valued at approximately $7,715,136. The disclosure for this sale can be found here. 0.32% of the stock is currently owned by corporate insiders.
A number of institutional investors and hedge funds have recently modified their holdings of MA. Capital Guardian Trust Co. purchased a new stake in shares of Mastercard in the 3rd quarter valued at $103,000. Baker Ellis Asset Management LLC acquired a new stake in shares of Mastercard in the 3rd quarter valued at about $104,000. Fort L.P. purchased a new stake in Mastercard during the 2nd quarter valued at approximately $120,000. Point72 Hong Kong Ltd purchased a new stake in Mastercard during the 2nd quarter valued at approximately $131,000. Finally, IMS Capital Management purchased a new position in shares of Mastercard during the 3rd quarter worth approximately $145,000. 74.53% of the stock is currently owned by institutional investors.
Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. It facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers related products and services.
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