Mastercard (NYSE:MA) Trading Down 0.5% – Here’s What Happened

Mastercard Incorporated (NYSE:MA) shares dropped 0.5% on Monday . The stock traded as low as $516.00 and last traded at $518.51. Approximately 907,051 shares traded hands during trading, a decline of 48% from the average daily volume of 1,751,365 shares. The stock had previously closed at $521.36.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on MA. Robert W. Baird increased their price target on Mastercard from $545.00 to $575.00 and gave the company an “outperform” rating in a research report on Wednesday, October 16th. Mizuho boosted their target price on Mastercard from $496.00 to $532.00 and gave the company an “outperform” rating in a report on Friday, November 1st. 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. Macquarie upped their price objective on Mastercard from $505.00 to $565.00 and gave the company an “outperform” rating in a research note on Friday, November 1st. Finally, Deutsche Bank Aktiengesellschaft lifted their target price on Mastercard from $510.00 to $580.00 and gave the company a “buy” rating in a research note on Friday, November 1st. Three analysts have rated the stock with a hold rating, twenty-three have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $562.76.

Mastercard Stock Performance

The stock’s 50 day moving average price is $523.76 and its 200 day moving average price is $491.10. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 2.36. The company has a market cap of $473.66 billion, a price-to-earnings ratio of 39.04, a P/E/G ratio of 2.36 and a beta of 1.10.

Mastercard (NYSE:MA) last issued its earnings results on Thursday, October 31st. The credit services provider reported $3.89 earnings per share for the quarter, topping the consensus estimate of $3.73 by $0.16. The business had revenue of $7.37 billion for the quarter, compared to analyst estimates of $7.27 billion. Mastercard had a return on equity of 178.27% and a net margin of 45.26%. The business’s quarterly revenue was up 12.8% on a year-over-year basis. During the same period last year, the company posted $3.39 EPS. On average, analysts expect that Mastercard Incorporated will post 14.47 EPS for the current fiscal year.

Mastercard Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, February 7th. Investors of record on Thursday, January 9th will be issued a $0.76 dividend. This is an increase from Mastercard’s previous quarterly dividend of $0.66. This represents a $3.04 annualized dividend and a yield of 0.59%. The ex-dividend date of this dividend is Friday, January 10th. Mastercard’s dividend payout ratio is currently 23.00%.

Mastercard announced that its Board of Directors has initiated a stock buyback plan on Tuesday, December 17th that permits the company to repurchase $12.00 billion in shares. This repurchase authorization permits the credit services provider to reacquire up to 2.5% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Strategic Financial Concepts LLC lifted its holdings in shares of Mastercard by 12,522.2% in the 2nd quarter. Strategic Financial Concepts LLC now owns 55,790 shares of the credit services provider’s stock worth $246,000 after purchasing an additional 55,348 shares during the last quarter. Oak Thistle LLC acquired a new position in shares of Mastercard during the second quarter valued at $277,000. LGT Fund Management Co Ltd. raised its stake in shares of Mastercard by 41.7% during the second quarter. LGT Fund Management Co Ltd. now owns 16,071 shares of the credit services provider’s stock valued at $7,090,000 after purchasing an additional 4,733 shares in the last quarter. Royal London Asset Management Ltd. grew its position in Mastercard by 1.9% in the 2nd quarter. Royal London Asset Management Ltd. now owns 386,840 shares of the credit services provider’s stock valued at $170,658,000 after buying an additional 7,262 shares in the last quarter. Finally, Sachetta LLC raised its position in shares of Mastercard by 28.9% during the 2nd quarter. Sachetta LLC now owns 254 shares of the credit services provider’s stock worth $114,000 after buying an additional 57 shares in the last quarter. 97.28% of the stock is owned by institutional investors and hedge funds.

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.