Mastercard (NYSE:MA) Stock Price Down 0.6% – What’s Next?

Mastercard Incorporated (NYSE:MA) dropped 0.6% during mid-day trading on Friday . The stock traded as low as $532.57 and last traded at $532.82. Approximately 285,976 shares were traded during mid-day trading, a decline of 88% from the average daily volume of 2,466,216 shares. The stock had previously closed at $536.15.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the stock. TD Cowen boosted their price target on shares of Mastercard from $533.00 to $567.00 and gave the stock a “buy” rating in a research note on Friday, November 15th. William Blair reiterated an “outperform” rating on shares of Mastercard in a research report on Monday, November 25th. Jefferies Financial Group raised their price target on Mastercard from $590.00 to $610.00 and gave the stock a “buy” rating in a research report on Monday, December 9th. Compass Point initiated coverage on shares of Mastercard in a research note on Wednesday, September 4th. They set a “neutral” rating and a $525.00 price objective on the stock. Finally, Royal Bank of Canada reaffirmed an “outperform” rating and issued a $572.00 target price on shares of Mastercard in a research note on Thursday, November 14th. Three equities research 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’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $562.76.

Mastercard Price Performance

The business has a fifty day moving average of $522.01 and a two-hundred day moving average of $486.42. The firm has a market capitalization of $488.04 billion, a price-to-earnings ratio of 40.22, a price-to-earnings-growth ratio of 2.36 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.

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

Mastercard Increases Dividend

The company 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 dividend of $0.76 per share. This is a boost from Mastercard’s previous quarterly dividend of $0.66. This represents a $3.04 annualized dividend and a yield of 0.57%. The ex-dividend date is Thursday, January 9th. Mastercard’s dividend payout ratio (DPR) is presently 23.00%.

Mastercard declared that its board has authorized a stock repurchase program 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 stock through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Mastercard

Several institutional investors and hedge funds have recently modified their holdings of MA. Garden State Investment Advisory Services LLC boosted its holdings in Mastercard by 5.0% in the 3rd quarter. Garden State Investment Advisory Services LLC now owns 655 shares of the credit services provider’s stock valued at $324,000 after purchasing an additional 31 shares during the period. American Trust raised its position in shares of Mastercard by 13.8% in the third quarter. American Trust now owns 11,157 shares of the credit services provider’s stock valued at $5,509,000 after buying an additional 1,352 shares in the last quarter. Franklin Resources Inc. grew its position in Mastercard by 4.2% during the third quarter. Franklin Resources Inc. now owns 7,501,814 shares of the credit services provider’s stock worth $3,800,836,000 after buying an additional 304,293 shares in the last quarter. Synovus Financial Corp increased its stake in Mastercard by 13.2% during the 3rd quarter. Synovus Financial Corp now owns 41,645 shares of the credit services provider’s stock worth $20,563,000 after acquiring an additional 4,843 shares during the period. Finally, Wilmington Savings Fund Society FSB increased its stake in Mastercard by 30.3% during the 3rd quarter. Wilmington Savings Fund Society FSB now owns 75,960 shares of the credit services provider’s stock worth $37,509,000 after acquiring an additional 17,648 shares during the period. 97.28% of the stock is currently 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.