Mastercard’s (MA) “Overweight” Rating Reaffirmed at Piper Sandler

Piper Sandler reissued their overweight rating on shares of Mastercard (NYSE:MA) in a report issued on Friday,Benzinga reports. The brokerage currently has a $635.00 price objective on the credit services provider’s stock, up from their previous price objective of $591.00.

Several other research analysts have also issued reports on MA. Keefe, Bruyette & Woods raised their price target on Mastercard from $618.00 to $665.00 and gave the stock an “outperform” rating in a research report on Friday. Seaport Res Ptn cut Mastercard from a “strong-buy” rating to a “hold” rating in a report on Tuesday, January 14th. Robert W. Baird boosted their target price on Mastercard from $545.00 to $575.00 and gave the stock an “outperform” rating in a research report on Wednesday, October 16th. UBS Group increased their price target on shares of Mastercard from $590.00 to $610.00 and gave the company a “buy” rating in a research report on Thursday, November 14th. Finally, Oppenheimer decreased their price objective 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. Four equities research analysts have rated the stock with a hold rating, twenty-three have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, Mastercard has a consensus rating of “Moderate Buy” and a consensus price target of $595.64.

Mastercard Stock Performance

Shares of NYSE:MA opened at $555.63 on Friday. 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 has a 1-year low of $428.86 and a 1-year high of $576.94. The stock has a market capitalization of $509.97 billion, a P/E ratio of 42.03, a P/E/G ratio of 2.17 and a beta of 1.10. The business has a 50-day moving average price of $528.28 and a two-hundred day moving average price of $501.03.

Mastercard (NYSE:MA) last posted its quarterly earnings results on Thursday, January 30th. The credit services provider reported $3.82 earnings per share for the quarter, topping analysts’ consensus estimates of $3.71 by $0.11. Mastercard had a net margin of 45.26% and a return on equity of 178.27%. Equities analysts predict that Mastercard will post 14.47 earnings per share for the current year.

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 reacquire up to 2.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

Mastercard Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, February 7th. Stockholders of record on Thursday, January 9th will be given a $0.76 dividend. This represents a $3.04 dividend on an annualized basis and a dividend yield of 0.55%. The ex-dividend date of this dividend is Friday, January 10th. This is a positive change from Mastercard’s previous quarterly dividend of $0.66. Mastercard’s payout ratio is currently 23.00%.

Institutional Investors Weigh In On Mastercard

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Highline Wealth Partners LLC bought a new stake in Mastercard during the third quarter worth about $25,000. First Personal Financial Services bought a new position in Mastercard in the third quarter valued at approximately $39,000. FSA Wealth Management LLC acquired a new position in shares of Mastercard during the 3rd quarter worth approximately $54,000. Raelipskie Partnership raised its stake in shares of Mastercard by 120.0% during the 3rd quarter. Raelipskie Partnership now owns 110 shares of the credit services provider’s stock worth $54,000 after purchasing an additional 60 shares in the last quarter. Finally, Legacy Investment Solutions LLC acquired a new stake in shares of Mastercard in the 3rd quarter valued at approximately $55,000. 97.28% of the stock is 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.