Mastercard (NYSE:MA) Shares Down 0.2% – Should You Sell?

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

Analysts Set New Price Targets

MA has been the topic of several research reports. Morgan Stanley boosted their price target 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. TD Cowen upped their target price on shares of Mastercard from $533.00 to $567.00 and gave the stock a “buy” rating in a report on Friday, November 15th. Oppenheimer reduced their price target on shares of Mastercard from $591.00 to $588.00 and set an “outperform” rating for the company in a research report on Thursday, December 19th. Susquehanna lifted their price objective on Mastercard from $540.00 to $605.00 and gave the company a “positive” rating in a research note on Friday, November 1st. Finally, Bank of America increased their price objective on Mastercard from $480.00 to $509.00 and gave the company a “neutral” rating in a research report on Tuesday, September 17th. Three analysts have rated the stock with a hold rating, twenty-three have given a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, Mastercard presently has an average rating of “Moderate Buy” and an average target price of $562.76.

Mastercard Price Performance

The firm has a market capitalization of $492.77 billion, a PE ratio of 40.61, a PEG ratio of 2.36 and a beta of 1.10. The company has a debt-to-equity ratio of 2.36, a current ratio of 1.29 and a quick ratio of 1.29. The firm has a 50-day simple moving average of $521.56 and a 200-day simple moving average of $486.07.

Mastercard (NYSE:MA) last released its earnings results on Thursday, October 31st. The credit services provider reported $3.89 earnings per share for the quarter, beating analysts’ consensus estimates of $3.73 by $0.16. The company had revenue of $7.37 billion for the quarter, compared to analysts’ expectations of $7.27 billion. Mastercard had a net margin of 45.26% and a return on equity of 178.27%. Mastercard’s revenue for the quarter was up 12.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $3.39 EPS. As a group, equities analysts forecast that Mastercard Incorporated will post 14.47 earnings per share for the current year.

Mastercard Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, February 7th. Investors of record on Thursday, January 9th will be paid a dividend of $0.76 per share. The ex-dividend date is Thursday, January 9th. 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%. Mastercard’s dividend payout ratio is presently 23.00%.

Mastercard announced that its board has initiated a share buyback plan 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 plans are typically an indication that the company’s leadership believes its shares are undervalued.

Institutional Investors Weigh In On Mastercard

Large investors have recently added to or reduced their stakes in the stock. International Assets Investment Management LLC raised its holdings in shares of Mastercard by 120,665.3% in the third quarter. International Assets Investment Management LLC now owns 8,041,758 shares of the credit services provider’s stock worth $3,971,020,000 after buying an additional 8,035,099 shares during the period. Bank of Montreal Can lifted its holdings in Mastercard by 51.7% during the third quarter. Bank of Montreal Can now owns 5,765,714 shares of the credit services provider’s stock worth $2,846,187,000 after buying an additional 1,965,782 shares during the period. FMR LLC boosted its position in Mastercard by 3.4% during the third quarter. FMR LLC now owns 21,355,081 shares of the credit services provider’s stock valued at $10,545,139,000 after purchasing an additional 700,769 shares in the last quarter. Geode Capital Management LLC raised its holdings in Mastercard by 2.5% in the third quarter. Geode Capital Management LLC now owns 18,375,053 shares of the credit services provider’s stock worth $9,043,972,000 after purchasing an additional 453,773 shares in the last quarter. Finally, Montrusco Bolton Investments Inc. lifted its position in shares of Mastercard by 52.8% during the third quarter. Montrusco Bolton Investments Inc. now owns 1,185,081 shares of the credit services provider’s stock valued at $573,017,000 after buying an additional 409,334 shares during the last quarter. 97.28% of the stock is 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.