Mastercard (NYSE:MA) Stock Price Up 0.4% – What’s Next?

Mastercard Incorporated (NYSE:MA)’s share price was up 0.4% during mid-day trading on Tuesday . The stock traded as high as $529.19 and last traded at $527.84. Approximately 237,224 shares traded hands during mid-day trading, a decline of 90% from the average daily volume of 2,460,970 shares. The stock had previously closed at $525.55.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. Barclays boosted their price target on Mastercard from $536.00 to $576.00 and gave the company an “overweight” rating in a report on Thursday, October 10th. Oppenheimer cut their price target on shares of Mastercard from $591.00 to $588.00 and set an “outperform” rating on the stock in a report on Thursday, December 19th. BMO Capital Markets increased their price target on shares of Mastercard from $550.00 to $565.00 and gave the stock an “outperform” rating in a research note on Thursday, November 14th. Keefe, Bruyette & Woods raised their target price on Mastercard from $580.00 to $618.00 and gave the company an “outperform” rating in a research note on Monday, December 9th. Finally, JPMorgan Chase & Co. decreased their price objective on Mastercard from $593.00 to $580.00 and set an “overweight” rating for the company in a report on Friday, November 1st. Three investment 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 company’s stock. According to MarketBeat, Mastercard has an average rating of “Moderate Buy” and a consensus target price of $562.76.

Mastercard Stock Performance

The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 2.36. The company has a market cap of $484.17 billion, a P/E ratio of 39.90, a PEG ratio of 2.36 and a beta of 1.10. The business’s 50 day simple moving average is $522.32 and its 200 day simple moving average is $487.57.

Mastercard (NYSE:MA) last issued its quarterly earnings results on Thursday, October 31st. The credit services provider reported $3.89 earnings per share (EPS) 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 business had revenue of $7.37 billion during the quarter, compared to analyst estimates of $7.27 billion. During the same quarter in the prior year, the business posted $3.39 EPS. Mastercard’s revenue for the quarter was up 12.8% compared to the same quarter last year. Sell-side analysts predict that Mastercard Incorporated will post 14.47 earnings per share for the current fiscal year.

Mastercard Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, February 7th. Shareholders of record on Thursday, January 9th will be paid a $0.76 dividend. The ex-dividend date of this dividend is Thursday, January 9th. This represents a $3.04 annualized dividend and a yield of 0.58%. This is a boost from Mastercard’s previous quarterly dividend of $0.66. Mastercard’s payout ratio is presently 23.00%.

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

Institutional Inflows and Outflows

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