Mastercard (NYSE:MA) Stock Price Down 0.2% – Here’s Why

Mastercard Incorporated (NYSE:MA) shares were down 0.2% during mid-day trading on Friday . The company traded as low as $517.68 and last traded at $521.37. Approximately 409,801 shares were traded during mid-day trading, a decline of 74% from the average daily volume of 1,585,063 shares. The stock had previously closed at $522.40.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the company. Piper Sandler reissued an “overweight” rating and set a $575.00 price objective (up from $565.00) on shares of Mastercard in a report on Friday, November 15th. William Blair reissued an “outperform” rating on shares of Mastercard in a report on Monday, November 25th. TD Cowen raised their price target on Mastercard from $533.00 to $567.00 and gave the company a “buy” rating in a report on Friday, November 15th. KeyCorp boosted their price objective on Mastercard from $515.00 to $580.00 and gave the stock an “overweight” rating in a research note on Friday, November 1st. Finally, Keefe, Bruyette & Woods lifted 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. Three research analysts have rated the stock with a hold rating, twenty-three have issued a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $562.76.

Mastercard Trading Down 0.0 %

The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 2.36. The company’s fifty day simple moving average is $523.30 and its two-hundred day simple moving average is $489.21. The company has a market capitalization of $479.45 billion, a price-to-earnings ratio of 39.51, a price-to-earnings-growth ratio of 2.36 and a beta of 1.10.

Mastercard (NYSE:MA) last released its quarterly earnings results on Thursday, October 31st. The credit services provider reported $3.89 EPS for the quarter, topping analysts’ consensus estimates of $3.73 by $0.16. Mastercard had a return on equity of 178.27% and a net margin of 45.26%. The company had revenue of $7.37 billion for the quarter, compared to analyst estimates of $7.27 billion. During the same quarter last year, the firm posted $3.39 earnings per share. Mastercard’s revenue was up 12.8% compared to the same quarter last year. Research analysts forecast that Mastercard Incorporated will post 14.47 earnings per share for the current fiscal year.

Mastercard Increases Dividend

The company 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 dividend of $0.76 per share. This represents a $3.04 dividend on an annualized basis and a yield of 0.58%. This is an increase from Mastercard’s previous quarterly dividend of $0.66. The ex-dividend date is Thursday, January 9th. Mastercard’s payout ratio is presently 23.00%.

Mastercard declared that its Board of Directors has authorized a share repurchase program on Tuesday, December 17th that allows the company to buyback $12.00 billion in outstanding shares. This buyback authorization allows the credit services provider to reacquire up to 2.5% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Institutional Inflows and Outflows

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