Mastercard (NYSE:MA) Trading 0.2% Higher – Still a Buy?

Mastercard Incorporated (NYSE:MA)’s stock price shot up 0.2% during mid-day trading on Wednesday . The company traded as high as $529.19 and last traded at $526.57. 1,942,487 shares changed hands during mid-day trading, a decline of 21% from the average session volume of 2,467,849 shares. The stock had previously closed at $525.55.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on MA shares. Citigroup raised their price target on shares of Mastercard from $566.00 to $572.00 and gave the stock a “buy” rating in a research note on Monday, November 4th. Deutsche Bank Aktiengesellschaft boosted their target price on Mastercard from $510.00 to $580.00 and gave the company a “buy” rating in a research note on Friday, November 1st. UBS Group increased their price target on Mastercard from $590.00 to $610.00 and gave the stock a “buy” rating in a research note on Thursday, November 14th. William Blair restated an “outperform” rating on shares of Mastercard in a research note on Monday, November 25th. Finally, Oppenheimer reduced their target price on shares of Mastercard from $591.00 to $588.00 and set an “outperform” rating for the company in a research note on Thursday, December 19th. Three analysts have rated the stock with a hold rating, twenty-three have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $562.76.

Mastercard Trading Down 0.8 %

The stock has a 50-day moving average of $523.06 and a two-hundred day moving average of $488.98. The company has a market cap of $479.47 billion, a P/E ratio of 39.52, a price-to-earnings-growth ratio of 2.36 and a beta of 1.10. The company has a debt-to-equity ratio of 2.36, a quick ratio of 1.29 and a current ratio of 1.29.

Mastercard (NYSE:MA) last announced its quarterly earnings data on Thursday, October 31st. The credit services provider reported $3.89 EPS for the quarter, beating the consensus estimate of $3.73 by $0.16. The company had revenue of $7.37 billion for the quarter, compared to the consensus estimate 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 period in the prior year, the firm posted $3.39 EPS. On average, equities research analysts predict that Mastercard Incorporated will post 14.47 earnings per share for the current year.

Mastercard Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, February 7th. Shareholders of record on Thursday, January 9th will be given a $0.76 dividend. This is a positive change 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 dividend on an annualized basis and a yield of 0.58%. Mastercard’s payout ratio is 23.00%.

Mastercard declared that its board has authorized a stock repurchase plan on Tuesday, December 17th that authorizes the company to buyback $12.00 billion in shares. This buyback authorization authorizes the credit services provider to repurchase up to 2.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On Mastercard

Hedge funds and other institutional investors have recently modified their holdings of the company. Old Port Advisors boosted its holdings in shares of Mastercard by 1.3% in the fourth quarter. Old Port Advisors now owns 1,681 shares of the credit services provider’s stock worth $885,000 after buying an additional 21 shares during the last quarter. Garden State Investment Advisory Services LLC grew its position in shares of Mastercard by 5.0% during the 3rd quarter. Garden State Investment Advisory Services LLC now owns 655 shares of the credit services provider’s stock valued at $324,000 after acquiring an additional 31 shares during the period. American Trust increased its stake in shares of Mastercard by 13.8% in the 3rd quarter. American Trust now owns 11,157 shares of the credit services provider’s stock worth $5,509,000 after purchasing an additional 1,352 shares in the last quarter. Franklin Resources Inc. raised its holdings in Mastercard by 4.2% in the 3rd quarter. Franklin Resources Inc. now owns 7,501,814 shares of the credit services provider’s stock worth $3,800,836,000 after purchasing an additional 304,293 shares during the period. Finally, Synovus Financial Corp lifted its position in Mastercard by 13.2% during the third quarter. Synovus Financial Corp now owns 41,645 shares of the credit services provider’s stock valued at $20,563,000 after purchasing an additional 4,843 shares in the last quarter. 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.