Mastercard Incorporated (NYSE:MA) Receives Average “Buy” Rating from Analysts
Shares of Mastercard Incorporated (NYSE:MA) received a consensus “Buy” recommendation from the sixteen analysts who currently cover the company, MarketBeat.com reports. One analyst rated the stock with a hold recommendation and fourteen gave the company a buy recommendation. The average 1-year price target among brokers who have reported on the stock in the past year is $430.50.
Several research companies have recently published reports on MA. Raymond James lowered his price target on Mastercard shares from $453.00 to $447.00 and set an “outperform” rating on the stock in a Friday, Jan. 28, report. Morgan Stanley raised its price target on Mastercard shares from $448.00 to $449.00 and gave the company an “overweight” rating in a Friday, January 28 research report. Royal Bank of Canada cut its price target on Mastercard shares from $412.00 to $403.00 and set an “outperform” rating on the stock in a research report on Friday, October 29. Barclays lowered its target price on Mastercard shares from $455.00 to $430.00 in a Friday, January 21 research note. Finally, Mizuho lowered its price target on Mastercard shares from $465.00 to $400.00 and set a “buy” rating for the company in a research note on Friday, January 7.
Shares of Mastercard were down $3.75 in Friday trading, hitting $369.95. The company had a trading volume of 4,083,825 shares, compared to an average volume of 5,385,619 shares. The company has a market capitalization of $363.50 billion, a price-to-earnings ratio of 42.23, a growth price-to-earnings ratio of 1.84 and a beta of 1.08. The company’s fifty-day moving average is $365.85 and its 200-day moving average is $354.47. The company has a debt ratio of 1.78, a quick ratio of 1.33 and a current ratio of 1.29. Mastercard has a minimum of $306.00 over fifty-two weeks and a maximum of $401.50 over fifty-two weeks.
Mastercard (NYSE:MA) last released its quarterly earnings data on Thursday, January 27. The credit services provider reported EPS of $2.35 for the quarter, beating the Zacks consensus estimate of $2.21 by $0.14. The company posted revenue of $5.22 billion for the quarter, versus analyst estimates of $5.17 billion. Mastercard had a net margin of 46.00% and a return on equity of 122.90%. The company’s revenue for the quarter increased 26.6% year over year. In the same quarter last year, the company earned earnings per share of $1.64. On average, research analysts expect Mastercard to post an EPS of 10.31 for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Monday, May 9. Investors of record on Friday, April 8 will receive a dividend of $0.49. The ex-date of this dividend is Thursday, April 7. This represents a dividend of $1.96 on an annualized basis and a yield of 0.53%. Mastercard’s dividend payout ratio is currently 22.37%.
Mastercard said its board launched a stock repurchase program on Tuesday, Nov. 30 that allows the company to repurchase $8.00 billion worth of stock. This repurchase authorization allows the credit service provider to repurchase up to 2.5% of its shares through purchases on the open market. Stock buyback programs usually indicate that the management of the company believes that its shares are undervalued.
Separately, insider Edward Grunde McLaughlin sold 15,310 shares in a trade that took place on Friday, January 28. The shares were sold at an average price of $360.26, for a total value of $5,515,580.60. The sale was disclosed in a document filed with the SEC, accessible via this link. Additionally, major shareholder Foundation Mastercard sold 90,994 shares of the company in a trade on Wednesday, November 24. The stock was sold at an average price of $331.84, for a total transaction of $30,195,448.96. The disclosure of this sale can be found here. Insiders sold 935,460 shares of the company worth $328,815,739 in the past ninety days. Company insiders own 0.33% of the company’s shares.
Institutional investors have recently increased or reduced their stake in the company. State Street Corp increased its position in Mastercard by 4.4% during the fourth quarter. State Street Corp now owns 35,528,530 shares of the credit service provider valued at $12,766,111,000 after acquiring an additional 1,511,927 shares in the last quarter. Morgan Stanley increased its holdings of Mastercard shares by 4.6% in the third quarter. Morgan Stanley now owns 19,650,864 shares of the credit service provider valued at $6,832,213,000 after buying an additional 871,206 shares in the last quarter. Geode Capital Management LLC increased its stake in Mastercard by 2.9% during the 4th quarter. Geode Capital Management LLC now owns 15,148,167 shares of the credit services provider valued at $5,429,311,000 after purchasing an additional 421,767 shares in the last quarter. Capital International Investors increased its stake in Mastercard shares by 8.5% during the fourth quarter. Capital International Investors now owns 14,789,616 shares of the credit services provider valued at $5,314,216,000 after acquiring an additional 1,160,809 shares last quarter. Finally, Polen Capital Management LLC increased its stake in Mastercard by 24.1% during the third quarter. Polen Capital Management LLC now owns 7,642,367 shares of the credit service provider worth $2,657,098,000 after purchasing an additional 1,484,878 shares in the last quarter. 73.86% of the shares are held by hedge funds and other institutional investors.
Mastercard, Inc operates as a technology company. The company engages in the payments industry that connects consumers, financial institutions, merchants, governments and businesses. It offers payment solutions for the development and implementation of credit, debit, prepaid, commercial and payment programs.
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