Mastercard Incorporated (NYSE:MA) – Jefferies Financial Group lifted their FY2021 earnings estimates for Mastercard in a note issued to investors on Wednesday, January 12th. Jefferies Financial Group analyst T. Williams now forecasts that the credit services provider will post earnings per share of $8.25 for the year, up from their prior estimate of $8.24. Jefferies Financial Group also issued estimates for Mastercard’s Q4 2021 earnings at $2.19 EPS, Q1 2022 earnings at $2.21 EPS, Q2 2022 earnings at $2.44 EPS, Q3 2022 earnings at $2.80 EPS, Q4 2022 earnings at $3.04 EPS, FY2022 earnings at $10.49 EPS, Q2 2023 earnings at $3.02 EPS, Q3 2023 earnings at $3.50 EPS, Q4 2023 earnings at $3.72 EPS and FY2023 earnings at $13.01 EPS.
Several other research firms have also recently issued reports on MA. Royal Bank of Canada cut their price objective on shares of Mastercard from $412.00 to $403.00 and set an “outperform” rating for the company in a research report on Friday, October 29th. Morgan Stanley cut their price objective on shares of Mastercard from $451.00 to $448.00 and set an “overweight” rating for the company in a research report on Friday, October 29th. Wedbush cut their price objective on shares of Mastercard from $400.00 to $380.00 and set an “outperform” rating for the company in a research report on Monday, December 20th. Raymond James raised their price objective on shares of Mastercard from $430.00 to $453.00 and gave the stock an “outperform” rating in a research report on Tuesday. Finally, Wells Fargo & Company raised their price objective on shares of Mastercard from $400.00 to $430.00 and gave the stock an “overweight” rating in a research report on Thursday, November 11th. Two research analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Buy” and a consensus price target of $426.63.
Mastercard (NYSE:MA) last issued its earnings results on Thursday, October 28th. The credit services provider reported $2.37 EPS for the quarter, beating the Zacks’ consensus estimate of $2.19 by $0.18. The business had revenue of $4.99 billion during the quarter, compared to analysts’ expectations of $4.95 billion. Mastercard had a net margin of 45.50% and a return on equity of 116.88%. The company’s quarterly revenue was up 29.9% compared to the same quarter last year. During the same period in the prior year, the business earned $1.60 earnings per share.
Large investors have recently made changes to their positions in the stock. OLD Mission Capital LLC purchased a new position in shares of Mastercard during the third quarter worth about $237,000. Meitav Dash Investments Ltd. grew its holdings in shares of Mastercard by 13.8% during the second quarter. Meitav Dash Investments Ltd. now owns 122,963 shares of the credit services provider’s stock worth $44,909,000 after purchasing an additional 14,944 shares during the last quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp grew its holdings in shares of Mastercard by 18.8% during the second quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 755,140 shares of the credit services provider’s stock worth $275,694,000 after purchasing an additional 119,452 shares during the last quarter. Van ECK Associates Corp grew its holdings in shares of Mastercard by 4.3% during the second quarter. Van ECK Associates Corp now owns 86,781 shares of the credit services provider’s stock worth $31,683,000 after purchasing an additional 3,546 shares during the last quarter. Finally, MCF Advisors LLC grew its holdings in shares of Mastercard by 31.0% during the second quarter. MCF Advisors LLC now owns 655 shares of the credit services provider’s stock worth $239,000 after purchasing an additional 155 shares during the last quarter. Hedge funds and other institutional investors own 73.32% of the company’s stock.
In related news, CEO Michael Miebach sold 10,670 shares of Mastercard stock in a transaction that occurred on Monday, November 15th. The shares were sold at an average price of $370.00, for a total value of $3,947,900.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, major shareholder Foundation Mastercard sold 90,994 shares of Mastercard stock in a transaction that occurred on Wednesday, November 17th. The stock was sold at an average price of $354.40, for a total transaction of $32,248,273.60. The disclosure for this sale can be found here. In the last three months, insiders sold 647,628 shares of company stock valued at $214,977,545. Insiders own 0.33% of the company’s stock.
Mastercard announced that its Board of Directors has authorized a stock repurchase program on Tuesday, November 30th that allows the company to buyback $8.00 billion in shares. This buyback authorization allows the credit services provider to buy up to 2.5% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board believes its shares are undervalued.
The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, February 9th. Stockholders of record on Friday, January 7th will be paid a $0.49 dividend. This is a positive change from Mastercard’s previous quarterly dividend of $0.44. The ex-dividend date of this dividend is Thursday, January 6th. This represents a $1.96 annualized dividend and a dividend yield of 0.53%. Mastercard’s dividend payout ratio (DPR) is presently 24.11%.
Mastercard, Inc operates as a technology company. The firm engages in the payments industry that connects consumers, financial institutions, merchants, governments and business. It offers payment solutions for the development and implementation of credit, debit, prepaid, commercial and payment programs.
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