Morgan Stanley Issues Positive Forecast for Mastercard (NYSE:MA) Stock Price

Mastercard (NYSE:MA) had its price objective increased by Morgan Stanley from $564.00 to $654.00 in a report published on Wednesday morning,Benzinga reports. They currently have an overweight rating on the credit services provider’s stock.

Several other analysts have also commented on the stock. Piper Sandler restated an “overweight” rating and issued a $575.00 price objective (up from $565.00) on shares of Mastercard in a report on Friday, November 15th. Royal Bank of Canada restated an “outperform” rating and issued a $572.00 target price on shares of Mastercard in a research note on Thursday, November 14th. UBS Group upped their price target on Mastercard from $590.00 to $610.00 and gave the stock a “buy” rating in a research note on Thursday, November 14th. William Blair reiterated an “outperform” rating on shares of Mastercard in a report on Monday, November 25th. Finally, Jefferies Financial Group boosted their target price on shares of Mastercard from $590.00 to $610.00 and gave the company a “buy” rating in a report on Monday, December 9th. Four analysts have rated the stock with a hold rating, twenty-three have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $562.88.

Mastercard Trading Up 1.0 %

NYSE:MA traded up $5.35 during midday trading on Wednesday, reaching $525.31. 641,410 shares of the stock traded hands, compared to its average volume of 2,457,727. The stock has a market capitalization of $482.15 billion, a P/E ratio of 39.74, a PEG ratio of 2.38 and a beta of 1.10. The company has a debt-to-equity ratio of 2.36, a quick ratio of 1.29 and a current ratio of 1.29. The company has a fifty day moving average of $519.10 and a 200 day moving average of $483.15. Mastercard has a 12 month low of $416.53 and a 12 month high of $537.13.

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. The company had revenue of $7.37 billion for the quarter, compared to analysts’ expectations of $7.27 billion. Mastercard had a return on equity of 178.27% and a net margin of 45.26%. Mastercard’s quarterly revenue was up 12.8% on a year-over-year basis. During the same period last year, the firm earned $3.39 earnings per share. On average, research analysts predict that Mastercard will post 14.47 EPS for the current year.

Mastercard Increases Dividend

The business also recently announced 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 a boost from Mastercard’s previous quarterly dividend of $0.66. This represents a $3.04 dividend on an annualized basis and a yield of 0.58%. The ex-dividend date is Thursday, January 9th. Mastercard’s dividend payout ratio (DPR) is currently 19.97%.

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

Insiders Place Their Bets

In other news, CMO Venkata R. Madabhushi sold 4,685 shares of the business’s stock in a transaction on Friday, September 20th. The shares were sold at an average price of $489.86, for a total value of $2,294,994.10. Following the transaction, the chief marketing officer now owns 15,031 shares of the company’s stock, valued at approximately $7,363,085.66. The trade was a 23.76 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.10% of the company’s stock.

Institutional Trading of Mastercard

Hedge funds have recently modified their holdings of the company. Goldstein Advisors LLC increased its holdings in Mastercard by 1.3% during the 3rd quarter. Goldstein Advisors LLC now owns 1,516 shares of the credit services provider’s stock worth $749,000 after purchasing an additional 20 shares during the period. Community Bank N.A. grew its position in shares of Mastercard by 0.9% during the third quarter. Community Bank N.A. now owns 2,190 shares of the credit services provider’s stock worth $1,081,000 after buying an additional 20 shares in the last quarter. Raab & Moskowitz Asset Management LLC raised its holdings in Mastercard by 1.5% in the third quarter. Raab & Moskowitz Asset Management LLC now owns 1,398 shares of the credit services provider’s stock valued at $690,000 after acquiring an additional 20 shares in the last quarter. McLean Asset Management Corp lifted its stake in Mastercard by 1.3% in the third quarter. McLean Asset Management Corp now owns 1,677 shares of the credit services provider’s stock worth $834,000 after acquiring an additional 21 shares during the last quarter. Finally, Oldfather Financial Services LLC lifted its stake in Mastercard by 2.6% in the third quarter. Oldfather Financial Services LLC now owns 827 shares of the credit services provider’s stock worth $408,000 after acquiring an additional 21 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.