Traders Buy Shares of Mastercard (MA) on Weakness

Investors bought shares of Mastercard Incorporated (NYSE:MA) on weakness during trading on Monday. $312.70 million flowed into the stock on the tick-up and $209.49 million flowed out of the stock on the tick-down, for a money net flow of $103.21 million into the stock. Of all stocks tracked, Mastercard had the 9th highest net in-flow for the day. Mastercard traded down ($6.26) for the day and closed at $143.43

MA has been the subject of a number of research reports. Oppenheimer reissued a “buy” rating and set a $145.00 target price on shares of Mastercard in a research report on Friday, September 8th. Citigroup increased their target price on shares of Mastercard from $157.00 to $167.00 and gave the company a “buy” rating in a research report on Wednesday, October 18th. Nomura increased their target price on shares of Mastercard from $153.00 to $163.00 and gave the company a “buy” rating in a research report on Friday, September 8th. Susquehanna Bancshares reissued a “positive” rating and set a $158.00 target price (up from $149.00) on shares of Mastercard in a research report on Friday, September 8th. Finally, Guggenheim raised shares of Mastercard from a “neutral” rating to a “buy” rating and increased their target price for the company from $135.00 to $153.00 in a research report on Monday, September 11th. Two analysts have rated the stock with a hold rating, twenty-eight have issued a buy rating and one has issued a strong buy rating to the company. The stock currently has an average rating of “Buy” and a consensus target price of $159.22.

The stock has a market capitalization of $151,843.88, a P/E ratio of 33.28, a P/E/G ratio of 1.91 and a beta of 1.20. The company has a current ratio of 1.66, a quick ratio of 1.66 and a debt-to-equity ratio of 0.83.

Mastercard (NYSE:MA) last announced its quarterly earnings results on Tuesday, October 31st. The credit services provider reported $1.34 EPS for the quarter, beating the Zacks’ consensus estimate of $1.23 by $0.11. The company had revenue of $3.40 billion for the quarter, compared to analysts’ expectations of $3.28 billion. Mastercard had a net margin of 38.70% and a return on equity of 78.38%. Mastercard’s revenue was up 18.1% compared to the same quarter last year. During the same period in the prior year, the company posted $1.08 EPS. equities analysts forecast that Mastercard Incorporated will post 4.54 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, February 9th. Investors of record on Tuesday, January 9th will be paid a dividend of $0.25 per share. This is a boost from Mastercard’s previous quarterly dividend of $0.22. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.69%. The ex-dividend date of this dividend is Monday, January 8th. Mastercard’s dividend payout ratio is presently 20.47%.

Mastercard announced that its board has initiated a stock buyback program on Monday, December 4th that permits the company to repurchase $4.00 billion in outstanding shares. This repurchase authorization permits the credit services provider to repurchase shares of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

In other Mastercard news, insider Craig Vosburg sold 14,200 shares of the stock in a transaction that occurred on Thursday, September 21st. The shares were sold at an average price of $141.86, for a total value of $2,014,412.00. Following the sale, the insider now directly owns 40,646 shares in the company, valued at approximately $5,766,041.56. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Michael Fraccaro sold 5,800 shares of the stock in a transaction that occurred on Thursday, October 12th. The stock was sold at an average price of $147.59, for a total transaction of $856,022.00. The disclosure for this sale can be found here. Insiders sold a total of 25,000 shares of company stock worth $3,582,984 over the last quarter. Corporate insiders own 0.30% of the company’s stock.

Several large investors have recently modified their holdings of the company. Vanguard Group Inc. increased its holdings in shares of Mastercard by 2.3% in the 2nd quarter. Vanguard Group Inc. now owns 65,297,307 shares of the credit services provider’s stock worth $7,930,357,000 after buying an additional 1,490,267 shares during the last quarter. State Street Corp increased its holdings in shares of Mastercard by 0.4% in the 1st quarter. State Street Corp now owns 37,454,824 shares of the credit services provider’s stock worth $4,212,546,000 after buying an additional 140,515 shares during the last quarter. Janus Henderson Group PLC increased its holdings in shares of Mastercard by 784.3% in the 2nd quarter. Janus Henderson Group PLC now owns 16,870,229 shares of the credit services provider’s stock worth $2,048,899,000 after buying an additional 14,962,583 shares during the last quarter. Capital Research Global Investors increased its holdings in shares of Mastercard by 15.8% in the 2nd quarter. Capital Research Global Investors now owns 12,685,589 shares of the credit services provider’s stock worth $1,540,665,000 after buying an additional 1,729,179 shares during the last quarter. Finally, Capital World Investors increased its holdings in shares of Mastercard by 2.3% in the 2nd quarter. Capital World Investors now owns 12,675,652 shares of the credit services provider’s stock worth $1,539,458,000 after buying an additional 289,488 shares during the last quarter. 75.81% of the stock is currently owned by hedge funds and other institutional investors.

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Mastercard Company Profile

MasterCard Incorporated is a technology company that connects consumers, financial institutions, merchants, governments and businesses across the world, enabling them to use electronic forms of payment. The Company operates through Payment Solutions segment. The Company allows user to make payments by creating a range of payment solutions and services using its brands, which include MasterCard, Maestro and Cirrus.

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