Mastercard (NYSE:MA) Trading 0.5% Higher – Here’s What Happened

Mastercard Incorporated (NYSE:MA)’s stock price was up 0.5% on Tuesday . The company traded as high as $507.85 and last traded at $507.21. Approximately 696,659 shares changed hands during mid-day trading, a decline of 70% from the average daily volume of 2,295,478 shares. The stock had previously closed at $504.91.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on MA. TD Cowen boosted their price objective on Mastercard from $533.00 to $567.00 and gave the stock a “buy” rating in a research note on Friday, November 15th. BMO Capital Markets boosted 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. Morgan Stanley raised their price objective on shares of Mastercard from $564.00 to $654.00 and gave the company an “overweight” rating in a research report on Wednesday, December 18th. William Blair reiterated an “outperform” rating on shares of Mastercard in a report on Monday, November 25th. Finally, Robert W. Baird raised their target price on shares of Mastercard from $545.00 to $575.00 and gave the stock an “outperform” rating in a report on Wednesday, October 16th. Three equities research analysts have rated the stock with a hold rating, twenty-two have given a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, Mastercard presently has a consensus rating of “Moderate Buy” and a consensus target price of $566.13.

Mastercard Price Performance

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 firm has a market capitalization of $464.18 billion, a PE ratio of 38.26, a PEG ratio of 2.36 and a beta of 1.10. The firm’s fifty day simple moving average is $524.08 and its 200-day simple moving average is $492.75.

Mastercard (NYSE:MA) last released its quarterly earnings data on Thursday, October 31st. The credit services provider reported $3.89 earnings per share for the quarter, beating the consensus estimate of $3.73 by $0.16. The firm had revenue of $7.37 billion during 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 firm’s quarterly revenue was up 12.8% on a year-over-year basis. During the same period in the previous year, the company earned $3.39 earnings per share. On average, research analysts forecast that Mastercard Incorporated will post 14.47 earnings per share for the current fiscal year.

Mastercard Increases Dividend

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

Mastercard declared that its board has authorized a share repurchase plan on Tuesday, December 17th that allows the company to repurchase $12.00 billion in shares. This repurchase authorization allows the credit services provider to purchase up to 2.5% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board believes its stock is undervalued.

Hedge Funds Weigh In On Mastercard

Hedge funds have recently bought and sold shares of the business. Quilter Plc boosted its stake in Mastercard by 2.8% in the second quarter. Quilter Plc now owns 801 shares of the credit services provider’s stock valued at $353,000 after acquiring an additional 22 shares in the last quarter. Fairfield Financial Advisors LTD acquired a new position in Mastercard during the 2nd quarter valued at about $3,417,000. Angeles Investment Advisors LLC raised its stake in Mastercard by 76.1% in the second quarter. Angeles Investment Advisors LLC now owns 1,125 shares of the credit services provider’s stock valued at $496,000 after buying an additional 486 shares during the last quarter. Waycross Partners LLC boosted its holdings in Mastercard by 12.2% in the second quarter. Waycross Partners LLC now owns 39,019 shares of the credit services provider’s stock worth $17,214,000 after acquiring an additional 4,243 shares in the last quarter. Finally, Black Diamond Financial LLC grew its stake in shares of Mastercard by 55.6% during the second quarter. Black Diamond Financial LLC now owns 937 shares of the credit services provider’s stock worth $413,000 after acquiring an additional 335 shares during the last quarter. Institutional investors own 97.28% of the company’s stock.

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.