Royal Bank of Canada Increases Mastercard (NYSE:MA) Price Target to $650.00

Mastercard (NYSE:MA) had its price target increased by Royal Bank of Canada from $572.00 to $650.00 in a research note released on Friday morning,Benzinga reports. The firm currently has an outperform rating on the credit services provider’s stock.

Several other equities analysts have also recently issued reports on MA. Robert W. Baird lifted their price objective on Mastercard from $545.00 to $575.00 and gave the company an “outperform” rating in a research note on Wednesday, October 16th. Macquarie lifted their price target on shares of Mastercard from $505.00 to $565.00 and gave the stock an “outperform” rating in a research note on Friday, November 1st. Susquehanna increased their price objective on shares of Mastercard from $605.00 to $670.00 and gave the company a “positive” rating in a research report on Friday. Jefferies Financial Group lifted their price objective on shares of Mastercard from $590.00 to $610.00 and gave the stock a “buy” rating in a research report on Monday, December 9th. Finally, Citigroup boosted their target price on shares of Mastercard from $572.00 to $584.00 and gave the stock a “buy” rating in a research note on Tuesday, January 14th. Four investment analysts have rated the stock with a hold rating, twenty-three have given a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $595.64.

Mastercard Trading Down 1.8 %

Shares of MA stock opened at $555.63 on Friday. Mastercard has a fifty-two week low of $428.86 and a fifty-two week high of $576.94. The company has a 50 day moving average price of $528.28 and a 200 day moving average price of $501.03. The stock has a market capitalization of $509.97 billion, a P/E ratio of 42.03, a price-to-earnings-growth ratio of 2.17 and a beta of 1.10. The company has a debt-to-equity ratio of 2.36, a quick ratio of 1.29 and a current ratio of 1.29.

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

Mastercard Increases Dividend

The business also recently disclosed 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. The ex-dividend date of this dividend is Friday, January 10th. This is an increase from Mastercard’s previous quarterly dividend of $0.66. This represents a $3.04 annualized dividend and a yield of 0.55%. Mastercard’s dividend payout ratio is currently 23.00%.

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.

Hedge Funds Weigh In On Mastercard

Several institutional investors have recently bought and sold shares of the company. Capital Investment Advisory Services LLC boosted its holdings in shares of Mastercard by 0.6% in the fourth quarter. Capital Investment Advisory Services LLC now owns 3,135 shares of the credit services provider’s stock valued at $1,651,000 after acquiring an additional 19 shares in the last quarter. Capital Investment Services of America Inc. boosted its stake in Mastercard by 4.2% during the 4th quarter. Capital Investment Services of America Inc. now owns 475 shares of the credit services provider’s stock valued at $250,000 after purchasing an additional 19 shares in the last quarter. Augustine Asset Management Inc. boosted its stake in Mastercard by 1.1% during the 4th quarter. Augustine Asset Management Inc. now owns 1,797 shares of the credit services provider’s stock valued at $946,000 after purchasing an additional 19 shares in the last quarter. Goldstein Advisors LLC increased its position in shares of Mastercard by 1.3% during the 3rd quarter. Goldstein Advisors LLC now owns 1,516 shares of the credit services provider’s stock valued at $749,000 after purchasing an additional 20 shares during the period. Finally, Community Bank N.A. raised its stake in shares of Mastercard by 0.9% in the 3rd quarter. Community Bank N.A. now owns 2,190 shares of the credit services provider’s stock worth $1,081,000 after buying an additional 20 shares in the last quarter. 97.28% of the stock is owned by institutional investors and hedge funds.

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.