Mastercard (NYSE:MA) Shares Down 0.2% – Time to Sell?

Mastercard Incorporated (NYSE:MA) traded down 0.2% during mid-day trading on Thursday . The stock traded as low as $532.92 and last traded at $534.76. 193,118 shares changed hands during mid-day trading, a decline of 92% from the average session volume of 2,471,318 shares. The stock had previously closed at $535.71.

Analyst Upgrades and Downgrades

MA has been the topic of a number of recent research reports. Macquarie lifted their price target on shares of Mastercard from $505.00 to $565.00 and gave the stock an “outperform” rating in a report on Friday, November 1st. JPMorgan Chase & Co. cut their target price on Mastercard from $593.00 to $580.00 and set an “overweight” rating on the stock in a report on Friday, November 1st. Jefferies Financial Group increased their price target on Mastercard from $590.00 to $610.00 and gave the company a “buy” rating in a research note on Monday, December 9th. William Blair reaffirmed an “outperform” rating on shares of Mastercard in a research note on Monday, November 25th. Finally, Morgan Stanley increased their target price on shares of Mastercard from $564.00 to $654.00 and gave the company an “overweight” rating in a research report on Wednesday, December 18th. Three investment analysts have rated the stock with a hold rating, twenty-three have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, Mastercard presently has an average rating of “Moderate Buy” and a consensus target price of $562.76.

Mastercard Stock Performance

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’s 50 day moving average price is $522.32 and its 200-day moving average price is $487.00. The stock has a market cap of $488.47 billion, a P/E ratio of 40.26, a price-to-earnings-growth ratio of 2.36 and a beta of 1.10.

Mastercard (NYSE:MA) last issued its quarterly earnings data on Thursday, October 31st. The credit services provider reported $3.89 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 during the quarter, compared to the consensus estimate of $7.27 billion. During the same period in the prior year, the firm posted $3.39 EPS. The firm’s quarterly revenue was up 12.8% compared to the same quarter last year. Equities analysts forecast that Mastercard Incorporated will post 14.47 EPS for the current fiscal year.

Mastercard Increases Dividend

The firm 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 positive change from Mastercard’s previous quarterly dividend of $0.66. This represents a $3.04 dividend on an annualized basis and a yield of 0.57%. The ex-dividend date is Thursday, January 9th. Mastercard’s dividend payout ratio (DPR) is 23.00%.

Mastercard declared that its Board of Directors has initiated a share repurchase plan on Tuesday, December 17th that allows the company to repurchase $12.00 billion in shares. This repurchase authorization allows the credit services provider to buy up to 2.5% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Mastercard

A number of hedge funds have recently made changes to their positions in MA. Temasek Holdings Private Ltd raised its position in Mastercard by 2.3% in the third quarter. Temasek Holdings Private Ltd now owns 2,805,554 shares of the credit services provider’s stock worth $1,385,383,000 after acquiring an additional 62,891 shares during the period. Sarasin & Partners LLP grew its stake in shares of Mastercard by 4.7% during the 3rd quarter. Sarasin & Partners LLP now owns 831,942 shares of the credit services provider’s stock worth $410,813,000 after acquiring an additional 37,486 shares during the period. Charles Schwab Investment Management Inc. increased its holdings in Mastercard by 2.0% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 5,010,430 shares of the credit services provider’s stock worth $2,474,151,000 after acquiring an additional 100,550 shares during the last quarter. Principal Financial Group Inc. lifted its holdings in Mastercard by 4.8% during the third quarter. Principal Financial Group Inc. now owns 3,031,915 shares of the credit services provider’s stock valued at $1,497,160,000 after purchasing an additional 138,842 shares during the last quarter. Finally, Itau Unibanco Holding S.A. bought a new position in Mastercard during the second quarter worth about $6,850,000. 97.28% of the stock is currently owned by 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.