Mastercard (NYSE:MA) Hits New 52-Week High – Time to Buy?

Mastercard Incorporated (NYSE:MA)’s share price reached a new 52-week high during mid-day trading on Friday . The stock traded as high as $537.70 and last traded at $536.15, with a volume of 1109554 shares traded. The stock had previously closed at $535.71.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Keefe, Bruyette & Woods lifted their price objective on shares of Mastercard from $580.00 to $618.00 and gave the stock an “outperform” rating in a research note on Monday, December 9th. Macquarie upped their price objective on shares of Mastercard from $505.00 to $565.00 and gave the company an “outperform” rating in a research report on Friday, November 1st. Piper Sandler reiterated an “overweight” rating and set a $575.00 target price (up from $565.00) on shares of Mastercard in a report on Friday, November 15th. Mizuho increased their price target on Mastercard from $496.00 to $532.00 and gave the stock an “outperform” rating in a report on Friday, November 1st. Finally, Jefferies Financial Group lifted their price objective on Mastercard from $590.00 to $610.00 and gave the company a “buy” rating in a report on Monday, December 9th. Three equities 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’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $562.76.

Mastercard Stock Up 0.1 %

The stock has a market cap of $492.10 billion, a P/E ratio of 40.56, a price-to-earnings-growth ratio of 2.36 and a beta of 1.10. The firm has a 50 day simple moving average of $522.01 and a 200-day simple moving average of $486.42. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 2.36.

Mastercard (NYSE:MA) last posted its quarterly 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. Mastercard had a return on equity of 178.27% and a net margin of 45.26%. The business had revenue of $7.37 billion for the quarter, compared to analysts’ expectations of $7.27 billion. During the same quarter in the prior year, the business earned $3.39 EPS. The firm’s revenue for the quarter was up 12.8% on a year-over-year basis. On average, equities 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. Stockholders of record on Thursday, January 9th will be given a $0.76 dividend. This is an increase from Mastercard’s previous quarterly dividend of $0.66. The ex-dividend date of this dividend is Thursday, January 9th. This represents a $3.04 annualized dividend and a dividend yield of 0.57%. Mastercard’s dividend payout ratio is presently 23.00%.

Mastercard announced that its board has authorized a share buyback program on Tuesday, December 17th that permits the company to buyback $12.00 billion in shares. This buyback authorization permits the credit services provider to reacquire up to 2.5% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s board believes its shares are undervalued.

Institutional Trading of Mastercard

Several hedge funds and other institutional investors have recently bought and sold shares of MA. International Assets Investment Management LLC lifted its holdings in shares of Mastercard by 120,665.3% during the 3rd 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 acquiring an additional 8,035,099 shares during the period. Bank of Montreal Can raised its stake 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 acquiring an additional 1,965,782 shares in the last quarter. FMR LLC grew its holdings in shares of Mastercard by 3.4% during the 3rd 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 during the last quarter. Geode Capital Management LLC increased its position in Mastercard by 2.5% during the 3rd 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 stake in Mastercard by 52.8% in the 3rd quarter. Montrusco Bolton Investments Inc. now owns 1,185,081 shares of the credit services provider’s stock valued at $573,017,000 after purchasing an additional 409,334 shares during the last quarter. Institutional investors and hedge funds own 97.28% of the company’s stock.

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.