Analysts Set Mastercard Incorporated (NYSE:MA) Price Target at $653.78

Mastercard Incorporated (NYSE:MA) has been assigned a consensus rating of “Buy” from the thirty brokerages that are currently covering the company, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, one has given a hold rating, twenty-one have issued a buy rating and seven have issued a strong buy rating on the company. The average 1-year price objective among brokerages that have issued ratings on the stock in the last year is $653.7778.

Several research analysts have recently issued reports on MA shares. UBS Group restated a “buy” rating on shares of Mastercard in a report on Thursday, June 25th. Royal Bank Of Canada reduced their target price on shares of Mastercard from $656.00 to $629.00 and set an “outperform” rating for the company in a research note on Friday, May 1st. BMO Capital Markets initiated coverage on Mastercard in a research report on Tuesday, April 21st. They set an “outperform” rating and a $605.00 target price on the stock. Raymond James Financial set a $609.00 price target on Mastercard in a research note on Friday, May 1st. Finally, BNP Paribas Exane raised Mastercard from a “neutral” rating to an “outperform” rating and set a $600.00 price target for the company in a report on Thursday, March 19th.

Mastercard News Summary

Here are the key news stories impacting Mastercard this week:

• Positive Sentiment: Baird raised its price target on Mastercard to $680 from $660 and kept an Outperform rating, citing expectations for revenue growth to accelerate as comparisons ease. Baird Raises PT on Mastercard (MA) Stock
• Positive Sentiment: Barclays initiated coverage with an Overweight rating and a $640 price target, reinforcing Wall Street confidence in Mastercard’s long-term earnings power after a sector reset. Barclays Initiates Mastercard (MA) Coverage at Overweight
• Positive Sentiment: Several partnerships and network developments show Mastercard’s payment rails remain widely used, including RAKBANK strengthening its relationship with Mastercard and Kraken rolling out a Mastercard crypto debit card in the UK and Europe. RAKBANK and Mastercard strengthen strategic relationship to drive payments innovation Kraken rolls out Mastercard crypto debit card in UK and Europe
• Neutral Sentiment: The House passed a bill that would restrict how payment networks classify firearms retailers, which could create compliance changes for Mastercard but is not yet final law. Congress Vote: The House has passed H.R. 1181 – Protecting Privacy in Purchases Act
• Neutral Sentiment: Mastercard-related commentary also pointed to ongoing value in the business model, with one analysis saying “the moat remains intact,” while another article noted Mastercard stock looks richer after recent gains and faces pressure from regulation and new competition. The Moat Remains Intact Mastercard (MA) Stock Looks Overvalued On Regulatory Pressure And New Competition

Mastercard Trading Down 0.5%

Shares of Mastercard stock opened at $535.47 on Thursday. Mastercard has a 1 year low of $464.52 and a 1 year high of $601.77. The company’s fifty day simple moving average is $502.03 and its 200-day simple moving average is $516.24. The company has a market cap of $473.14 billion, a price-to-earnings ratio of 30.99, a PEG ratio of 1.68 and a beta of 0.73. The company has a current ratio of 0.98, a quick ratio of 0.98 and a debt-to-equity ratio of 2.56.

Mastercard (NYSE:MA) last released its earnings results on Thursday, April 30th. The credit services provider reported $4.60 EPS for the quarter, beating the consensus estimate of $4.41 by $0.19. Mastercard had a net margin of 45.88% and a return on equity of 212.96%. The firm had revenue of $8.40 billion during the quarter, compared to analysts’ expectations of $8.26 billion. During the same period in the prior year, the company earned $3.73 EPS. The business’s quarterly revenue was up 15.8% compared to the same quarter last year. As a group, sell-side analysts expect that Mastercard will post 19.62 EPS for the current year.

Mastercard Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Stockholders of record on Thursday, July 9th will be given a dividend of $0.87 per share. The ex-dividend date is Thursday, July 9th. This represents a $3.48 dividend on an annualized basis and a dividend yield of 0.6%. Mastercard’s payout ratio is currently 20.14%.

Insiders Place Their Bets

In related news, insider Sandra A. Arkell sold 200 shares of the firm’s stock in a transaction on Monday, July 6th. The stock was sold at an average price of $540.00, for a total value of $108,000.00. Following the completion of the transaction, the insider directly owned 3,322 shares of the company’s stock, valued at $1,793,880. This trade represents a 5.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Raj Seshadri sold 4,828 shares of the firm’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $525.00, for a total value of $2,534,700.00. Following the completion of the transaction, the insider directly owned 16,429 shares of the company’s stock, valued at approximately $8,625,225. This trade represents a 22.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 7,005 shares of company stock valued at $3,689,976 over the last 90 days. 0.09% of the stock is currently owned by corporate insiders.

Institutional Trading of Mastercard

Institutional investors have recently made changes to their positions in the business. Robinswood Financial LLC bought a new position in Mastercard during the first quarter worth about $25,000. E Fund Management Hong Kong Co. Ltd. grew its stake in shares of Mastercard by 820.0% in the 4th quarter. E Fund Management Hong Kong Co. Ltd. now owns 46 shares of the credit services provider’s stock valued at $26,000 after purchasing an additional 41 shares during the period. Strive Financial Group LLC bought a new stake in shares of Mastercard in the 4th quarter valued at approximately $27,000. Hyposwiss Advisors SA acquired a new position in shares of Mastercard in the 4th quarter worth approximately $29,000. Finally, First Pacific Financial raised its holdings in shares of Mastercard by 113.8% in the 1st quarter. First Pacific Financial now owns 62 shares of the credit services provider’s stock worth $31,000 after buying an additional 33 shares in the last quarter. 97.28% of the stock is currently owned by institutional investors and hedge funds.

About Mastercard

Mastercard Incorporated is a global payments technology company that operates a network connecting consumers, financial institutions, merchants, governments and businesses in more than 200 countries and territories. The company facilitates electronic payments and transaction processing for credit, debit and prepaid card products carrying the Mastercard brand, while also providing a range of payment-related services to issuers, acquirers and merchants. Its technology and network enable authorization, clearing and settlement of payments and support a broad set of use cases including point-of-sale, e-commerce and mobile payments.

Beyond core transaction processing, Mastercard offers a suite of value-added services such as fraud and risk management, identity and authentication tools, tokenization and digital wallet support, cross-border and commercial payment solutions, and data analytics and consulting services for merchants and financial partners.