Mastercard Incorporated (NYSE:MA) Receives Average Rating of “Moderate Buy” from Brokerages

Shares of Mastercard Incorporated (NYSE:MA) have received an average rating of “Moderate Buy” from the twenty-eight brokerages that are currently covering the company, MarketBeat Ratings reports. Four research 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 company. The average 12-month target price among brokerages that have updated their coverage on the stock in the last year is $598.60.

MA has been the topic of a number of recent analyst reports. Morgan Stanley cut their price target on Mastercard from $654.00 to $644.00 and set an “overweight” rating on the stock in a report on Friday. Citigroup boosted their target price on Mastercard from $584.00 to $650.00 and gave the stock a “buy” rating in a report on Friday. UBS Group upped their price target on Mastercard from $600.00 to $660.00 and gave the company a “buy” rating in a report on Friday. Robert W. Baird lifted their price objective on shares of Mastercard from $545.00 to $575.00 and gave the stock an “outperform” rating in a research report on Wednesday, October 16th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Mastercard from $590.00 to $610.00 and gave the stock an “overweight” rating in a research report on Friday.

Mastercard Trading Up 1.6 %

NYSE:MA opened at $564.48 on Thursday. The business’s 50-day moving average is $528.28 and its two-hundred day moving average is $501.78. The company has a debt-to-equity ratio of 2.68, a current ratio of 1.03 and a quick ratio of 1.29. Mastercard has a 12 month low of $428.86 and a 12 month high of $576.94. The firm has a market capitalization of $518.10 billion, a PE ratio of 40.64, a price-to-earnings-growth ratio of 2.23 and a beta of 1.10.

Mastercard (NYSE:MA) last announced its earnings results on Thursday, January 30th. The credit services provider reported $3.82 earnings per share for the quarter, beating the consensus estimate of $3.71 by $0.11. Mastercard had a return on equity of 188.47% and a net margin of 45.71%. Research analysts predict that Mastercard will post 16.04 earnings per share for the current fiscal year.

Mastercard declared that its board has authorized a share repurchase plan 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 purchase up to 2.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Mastercard Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, February 7th. Shareholders of record on Thursday, January 9th will be issued a dividend of $0.76 per share. This is an increase from Mastercard’s previous quarterly dividend of $0.66. The ex-dividend date is Friday, January 10th. This represents a $3.04 annualized dividend and a yield of 0.54%. Mastercard’s dividend payout ratio is presently 21.89%.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Highline Wealth Partners LLC bought a new stake in shares of Mastercard in the 3rd quarter worth approximately $25,000. Strategic Investment Solutions Inc. IL purchased a new position in shares of Mastercard in the second quarter worth $34,000. First Personal Financial Services purchased a new position in Mastercard during the 3rd quarter valued at $39,000. Lowe Wealth Advisors LLC increased its position in Mastercard by 74.0% during the 3rd quarter. Lowe Wealth Advisors LLC now owns 87 shares of the credit services provider’s stock valued at $43,000 after purchasing an additional 37 shares during the period. Finally, FSA Wealth Management LLC purchased a new position in Mastercard during the 3rd quarter valued at $54,000. 97.28% of the stock is owned by institutional investors.

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.