Mastercard Incorporated (NYSE:MA) Receives Average Rating of “Moderate Buy” from Analysts

Shares of Mastercard Incorporated (NYSE:MA) have been assigned an average rating of “Moderate Buy” from the twenty-six brokerages that are covering the stock, Marketbeat.com reports. Three equities research analysts have rated the stock with a hold rating, twenty-two have given a buy rating and one has issued a strong buy rating on the company. The average 12 month price target among brokers that have updated their coverage on the stock in the last year is $566.13.

MA has been the topic of a number of recent analyst reports. Royal Bank of Canada reaffirmed an “outperform” rating and issued a $572.00 target price on shares of Mastercard in a research report on Thursday, November 14th. Keefe, Bruyette & Woods upped their price objective on shares of Mastercard from $580.00 to $618.00 and gave the stock an “outperform” rating in a report on Monday, December 9th. Piper Sandler reiterated an “overweight” rating and issued a $575.00 target price (up previously from $565.00) on shares of Mastercard in a report on Friday, November 15th. TD Cowen upped their price target on Mastercard from $533.00 to $567.00 and gave the stock a “buy” rating in a research note on Friday, November 15th. Finally, Jefferies Financial Group lifted their price objective on Mastercard from $590.00 to $610.00 and gave the company a “buy” rating in a research note on Monday, December 9th.

Mastercard Stock Down 2.1 %

Shares of NYSE MA opened at $505.52 on Friday. Mastercard has a 1 year low of $425.48 and a 1 year high of $537.70. The company has a market capitalization of $463.98 billion, a P/E ratio of 38.24, a P/E/G ratio of 2.36 and a beta of 1.10. The company has a 50 day simple moving average of $524.09 and a 200-day simple moving average of $492.03. The company has a debt-to-equity ratio of 2.36, a current ratio of 1.29 and a quick ratio of 1.29.

Mastercard (NYSE:MA) last posted its earnings results on Thursday, October 31st. The credit services provider reported $3.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.73 by $0.16. Mastercard had a return on equity of 178.27% and a net margin of 45.26%. The company 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 earnings per share. The firm’s quarterly revenue was up 12.8% compared to the same quarter last year. On average, equities research analysts predict that Mastercard will post 14.47 earnings per share for the current 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 issued a dividend of $0.76 per share. The ex-dividend date of this dividend is Friday, January 10th. This represents a $3.04 dividend on an annualized basis and a yield of 0.60%. This is a boost from Mastercard’s previous quarterly dividend of $0.66. Mastercard’s dividend payout ratio (DPR) is presently 23.00%.

Mastercard declared that its board has approved a share buyback 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 shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board of directors believes its stock is undervalued.

Institutional Investors Weigh In On Mastercard

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Highline Wealth Partners LLC acquired a new stake in shares of Mastercard during the third quarter worth about $25,000. Strategic Investment Solutions Inc. IL purchased a new stake in Mastercard in the second quarter valued at approximately $34,000. First Personal Financial Services purchased a new stake in Mastercard in the third quarter valued at approximately $39,000. Fairway Wealth LLC purchased a new position in shares of Mastercard during the second quarter worth approximately $35,000. Finally, Lowe Wealth Advisors LLC grew its position in shares of Mastercard by 74.0% during the third quarter. Lowe Wealth Advisors LLC now owns 87 shares of the credit services provider’s stock worth $43,000 after acquiring 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.