Mastercard (NYSE:MA) Trading 1.3% Higher – Here’s What Happened

Mastercard Incorporated (NYSE:MA) shares shot up 1.3% on Wednesday . The stock traded as high as $535.74 and last traded at $535.71. 955,015 shares changed hands during mid-day trading, a decline of 62% from the average session volume of 2,480,653 shares. The stock had previously closed at $528.96.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on MA shares. William Blair reissued an “outperform” rating on shares of Mastercard in a research report on Monday, November 25th. Mizuho boosted their price target on Mastercard from $496.00 to $532.00 and gave the company an “outperform” rating in a report on Friday, November 1st. Compass Point assumed coverage on Mastercard in a research report on Wednesday, September 4th. They issued a “neutral” rating and a $525.00 price target for the company. Susquehanna lifted their price objective on Mastercard from $540.00 to $605.00 and gave the company a “positive” rating in a research report on Friday, November 1st. Finally, BNP Paribas lowered shares of Mastercard from an “outperform” rating to a “neutral” rating and set a $470.00 target price for the company. in a report on Tuesday, September 3rd. Three analysts have rated the stock with a hold rating, twenty-three have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $562.76.

Mastercard Stock Up 0.1 %

The business has a 50-day moving average price of $522.01 and a 200 day moving average price of $486.42. The stock has a market capitalization of $492.10 billion, a P/E ratio of 40.56, a P/E/G ratio of 2.36 and a beta of 1.10. 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 (NYSE:MA) last released its quarterly earnings data on Thursday, October 31st. The credit services provider reported $3.89 EPS for the quarter, beating the consensus estimate of $3.73 by $0.16. Mastercard had a net margin of 45.26% and a return on equity of 178.27%. The business had revenue of $7.37 billion during the quarter, compared to analyst estimates of $7.27 billion. During the same quarter last year, the business earned $3.39 earnings per share. Mastercard’s quarterly revenue was up 12.8% compared to the same quarter last year. On average, equities analysts expect that Mastercard Incorporated 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. This is a boost from Mastercard’s previous quarterly dividend of $0.66. This represents a $3.04 annualized dividend and a yield of 0.57%. The ex-dividend date is Thursday, January 9th. Mastercard’s payout ratio is presently 23.00%.

Mastercard announced that its board has initiated a stock repurchase plan on Tuesday, December 17th that authorizes the company to repurchase $12.00 billion in shares. This repurchase authorization authorizes the credit services provider to purchase up to 2.5% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Mastercard

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Highline Wealth Partners LLC bought a new stake in Mastercard in the third quarter worth $25,000. Strategic Investment Solutions Inc. IL bought a new stake in shares of Mastercard in the 2nd quarter worth about $34,000. Fairway Wealth LLC purchased a new position in shares of Mastercard during the 2nd quarter worth about $35,000. First Personal Financial Services bought a new position in Mastercard during the 3rd quarter valued at about $39,000. Finally, Lowe Wealth Advisors LLC raised its position in Mastercard by 74.0% in the 3rd quarter. Lowe Wealth Advisors LLC now owns 87 shares of the credit services provider’s stock worth $43,000 after purchasing an additional 37 shares during the period. Hedge funds and other 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.