Mastercard (NYSE:MA) Trading Down 0.2% – Here’s Why

Shares of Mastercard Incorporated (NYSE:MA) fell 0.2% during mid-day trading on Friday . The company traded as low as $517.68 and last traded at $521.37. 409,801 shares traded hands during trading, a decline of 74% from the average session volume of 1,585,063 shares. The stock had previously closed at $522.40.

Analysts Set New Price Targets

Several equities analysts have commented on MA shares. Macquarie upped their price objective on Mastercard from $505.00 to $565.00 and gave the company an “outperform” rating in a research report on Friday, November 1st. Mizuho upped their price target on shares of Mastercard from $496.00 to $532.00 and gave the stock an “outperform” rating in a report on Friday, November 1st. Royal Bank of Canada reaffirmed an “outperform” rating and issued a $572.00 price target on shares of Mastercard in a research note on Thursday, November 14th. Jefferies Financial Group boosted their price objective on shares of Mastercard from $590.00 to $610.00 and gave the company a “buy” rating in a research report on Monday, December 9th. Finally, TD Cowen raised their target price on shares of Mastercard from $533.00 to $567.00 and gave the stock a “buy” rating in a research report on Friday, November 15th. Three equities research analysts have rated the stock with a hold rating, twenty-three have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Mastercard has an average rating of “Moderate Buy” and a consensus price target of $562.76.

Mastercard Trading Down 0.2 %

The company’s 50 day simple moving average is $523.58 and its two-hundred day simple moving average is $490.00. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 2.36. The company has a market capitalization of $478.52 billion, a price-to-earnings ratio of 39.44, a P/E/G ratio of 2.36 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, research analysts anticipate that Mastercard Incorporated will post 14.47 earnings per share for the current fiscal year.

Mastercard Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, February 7th. Stockholders of record on Friday, January 10th will be issued a dividend of $0.76 per share. The ex-dividend date is Friday, January 10th. This represents a $3.04 annualized dividend and a dividend yield of 0.58%. This is an increase from Mastercard’s previous quarterly dividend of $0.66. Mastercard’s dividend payout ratio is 23.00%.

Mastercard announced that its board has approved a share repurchase program on Tuesday, December 17th that authorizes the company to repurchase $12.00 billion in shares. This repurchase authorization authorizes the credit services provider to repurchase up to 2.5% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s leadership believes its shares are undervalued.

Institutional Investors Weigh In On Mastercard

A number of large investors have recently made changes to their positions in MA. Foster & Motley Inc. boosted its position in Mastercard by 16.3% in the second quarter. Foster & Motley Inc. now owns 1,186 shares of the credit services provider’s stock valued at $523,000 after buying an additional 166 shares during the last quarter. New York Life Investment Management LLC raised its holdings in shares of Mastercard by 0.6% during the second quarter. New York Life Investment Management LLC now owns 125,770 shares of the credit services provider’s stock worth $55,485,000 after purchasing an additional 688 shares during the last quarter. Private Advisor Group LLC lifted its position in Mastercard by 4.0% during the second quarter. Private Advisor Group LLC now owns 47,635 shares of the credit services provider’s stock valued at $21,015,000 after purchasing an additional 1,842 shares during the period. North Star Asset Management Inc. boosted its holdings in Mastercard by 1.6% in the second quarter. North Star Asset Management Inc. now owns 41,080 shares of the credit services provider’s stock valued at $18,123,000 after purchasing an additional 630 shares during the last quarter. Finally, Candriam S.C.A. grew its position in Mastercard by 4.9% during the 2nd quarter. Candriam S.C.A. now owns 413,193 shares of the credit services provider’s stock worth $182,276,000 after purchasing an additional 19,480 shares during the period. 97.28% of the stock is owned by hedge funds and other 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.