Mastercard (NYSE:MA) Trading 0.2% Higher – What’s Next?

Shares of Mastercard Incorporated (NYSE:MA) rose 0.2% during mid-day trading on Wednesday . The company traded as high as $529.19 and last traded at $526.57. Approximately 1,942,487 shares changed hands during mid-day trading, a decline of 21% from the average daily volume of 2,467,849 shares. The stock had previously closed at $525.55.

Wall Street Analyst Weigh In

Several equities analysts recently commented on MA shares. Bank of America increased their target price on Mastercard from $480.00 to $509.00 and gave the company a “neutral” rating in a report on Tuesday, September 17th. Keefe, Bruyette & Woods upped their price target on Mastercard from $580.00 to $618.00 and gave the company an “outperform” rating in a report on Monday, December 9th. BNP Paribas cut shares of Mastercard from an “outperform” rating to a “neutral” rating and set a $470.00 price objective on the stock. in a report on Tuesday, September 3rd. Royal Bank of Canada restated an “outperform” rating and issued a $572.00 target price on shares of Mastercard in a report on Thursday, November 14th. Finally, Susquehanna lifted their price target on shares of Mastercard from $540.00 to $605.00 and gave the stock a “positive” rating in a research note on Friday, November 1st. Three research analysts have rated the stock with a hold rating, twenty-three have assigned a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $562.76.

Mastercard Trading Up 0.2 %

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 50-day simple moving average of $522.80 and a 200 day simple moving average of $488.72. The company has a market capitalization of $483.30 billion, a P/E ratio of 39.83, a P/E/G ratio of 2.36 and a beta of 1.10.

Mastercard (NYSE:MA) last posted 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. Mastercard had a net margin of 45.26% and a return on equity of 178.27%. The business had revenue of $7.37 billion for the quarter, compared to analyst estimates of $7.27 billion. During the same quarter in the prior year, the firm earned $3.39 EPS. The firm’s quarterly revenue was up 12.8% compared to the same quarter last year. Sell-side analysts expect that Mastercard Incorporated will post 14.47 earnings per share 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 given a $0.76 dividend. The ex-dividend date is Thursday, January 9th. This represents a $3.04 dividend on an annualized basis and a dividend yield of 0.58%. This is an increase from Mastercard’s previous quarterly dividend of $0.66. Mastercard’s payout ratio is currently 23.00%.

Mastercard declared that its board has approved a share buyback program on Tuesday, December 17th that authorizes the company to buyback $12.00 billion in shares. This buyback authorization authorizes the credit services provider to purchase up to 2.5% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Garden State Investment Advisory Services LLC grew its position in shares of Mastercard by 5.0% during the 3rd quarter. Garden State Investment Advisory Services LLC now owns 655 shares of the credit services provider’s stock worth $324,000 after buying an additional 31 shares during the period. American Trust raised its position in shares of Mastercard by 13.8% during the third quarter. American Trust now owns 11,157 shares of the credit services provider’s stock worth $5,509,000 after purchasing an additional 1,352 shares during the period. Franklin Resources Inc. lifted its holdings in shares of Mastercard by 4.2% in the 3rd quarter. Franklin Resources Inc. now owns 7,501,814 shares of the credit services provider’s stock worth $3,800,836,000 after purchasing an additional 304,293 shares in the last quarter. Synovus Financial Corp grew its position in Mastercard by 13.2% in the 3rd quarter. Synovus Financial Corp now owns 41,645 shares of the credit services provider’s stock valued at $20,563,000 after purchasing 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 valued at $37,509,000 after purchasing an additional 17,648 shares in the last quarter. Institutional investors own 97.28% of the company’s stock.

Mastercard Company Profile

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.