DLK Investment Management LLC Acquires 26 Shares of Mastercard Incorporated (NYSE:MA)

DLK Investment Management LLC lifted its stake in Mastercard Incorporated (NYSE:MA) by 2.8% during the 4th quarter, Holdings Channel.com reports. The institutional investor owned 971 shares of the credit services provider’s stock after buying an additional 26 shares during the quarter. DLK Investment Management LLC’s holdings in Mastercard were worth $511,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently modified their holdings of MA. Highline Wealth Partners LLC purchased a new stake in Mastercard during the third quarter valued at $25,000. Strategic Investment Solutions Inc. IL purchased a new position in Mastercard in the second quarter worth about $34,000. First Personal Financial Services bought a new stake in Mastercard during the third quarter worth approximately $39,000. Lowe Wealth Advisors LLC raised its position in Mastercard by 74.0% during the third quarter. Lowe Wealth Advisors LLC now owns 87 shares of the credit services provider’s stock valued at $43,000 after purchasing an additional 37 shares during the period. Finally, FSA Wealth Management LLC purchased a new position in shares of Mastercard in the 3rd quarter worth approximately $54,000. Institutional investors own 97.28% of the company’s stock.

Mastercard Price Performance

Shares of MA opened at $525.22 on Monday. The company has a 50 day moving average of $524.28 and a two-hundred day moving average of $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 Incorporated has a twelve month low of $427.45 and a twelve month high of $537.70. The company has a market cap of $482.06 billion, a price-to-earnings ratio of 39.73, a price-to-earnings-growth ratio of 2.00 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 analysts’ consensus estimates of $3.73 by $0.16. Mastercard had a return on equity of 178.27% and a net margin of 45.26%. The firm had revenue of $7.37 billion during the quarter, compared to analysts’ expectations of $7.27 billion. During the same quarter last year, the firm earned $3.39 EPS. The business’s quarterly revenue was up 12.8% on a year-over-year basis. As a group, analysts predict that Mastercard Incorporated will post 14.46 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 dividend of $0.76 per share. This is a positive change from Mastercard’s previous quarterly dividend of $0.66. The ex-dividend date is Friday, January 10th. This represents a $3.04 dividend on an annualized basis and a yield of 0.58%. Mastercard’s dividend payout ratio is presently 19.97%.

Mastercard announced that its board has authorized a stock buyback plan on Tuesday, December 17th that permits the company to buyback $12.00 billion in outstanding shares. This buyback authorization permits the credit services provider to reacquire up to 2.5% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its shares are undervalued.

Wall Street Analyst Weigh In

MA has been the topic of several recent analyst reports. William Blair reissued an “outperform” rating on shares of Mastercard in a research note on Monday, November 25th. TD Cowen upped their target price on Mastercard from $533.00 to $567.00 and gave the company a “buy” rating in a research note on Friday, November 15th. BMO Capital Markets raised their price target on Mastercard from $550.00 to $565.00 and gave the stock an “outperform” rating in a research note on Thursday, November 14th. Royal Bank of Canada reiterated an “outperform” rating and issued a $572.00 target price on shares of Mastercard in a research note on Thursday, November 14th. Finally, Macquarie boosted their target price on shares of Mastercard from $505.00 to $565.00 and gave the company an “outperform” rating in a research note on Friday, November 1st. Four 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. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $566.63.

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.