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

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

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on MA shares. Citigroup increased their price objective 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. Piper Sandler restated an “overweight” rating and issued a $575.00 price target (up from $565.00) on shares of Mastercard in a research note on Friday, November 15th. Mizuho increased their price objective on Mastercard from $496.00 to $532.00 and gave the company an “outperform” rating in a report on Friday, November 1st. BMO Capital Markets upped their price target on shares of Mastercard from $550.00 to $565.00 and gave the stock an “outperform” rating in a research report on Thursday, November 14th. Finally, Compass Point initiated coverage on shares of Mastercard in a research note on Wednesday, September 4th. They set a “neutral” rating and a $525.00 price objective on the stock. Three research 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 stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $562.76.

Mastercard Stock Performance

The stock has a 50 day moving average of $522.32 and a 200 day moving average of $487.00. 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 firm has a market cap of $488.47 billion, a price-to-earnings ratio of 40.26, a P/E/G ratio of 2.36 and a beta of 1.10.

Mastercard (NYSE:MA) last issued its earnings results 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 during 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%. The business’s revenue for the quarter was up 12.8% compared to the same quarter last year. During the same period in the previous year, the company earned $3.39 EPS. As a group, analysts anticipate that Mastercard Incorporated will post 14.47 EPS for the current fiscal 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 issued a $0.76 dividend. This represents a $3.04 dividend on an annualized basis and a dividend yield of 0.57%. The ex-dividend date of this dividend is Thursday, January 9th. This is an increase from Mastercard’s previous quarterly dividend of $0.66. Mastercard’s dividend payout ratio (DPR) is currently 23.00%.

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

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Highline Wealth Partners LLC bought a new position in Mastercard in the 3rd quarter valued at approximately $25,000. Strategic Investment Solutions Inc. IL acquired a new stake in shares of Mastercard during the 2nd quarter valued at $34,000. Fairway Wealth LLC bought a new stake in Mastercard during the 2nd quarter worth $35,000. First Personal Financial Services acquired a new position in Mastercard in the 3rd quarter worth about $39,000. Finally, Lowe Wealth Advisors LLC raised its position in Mastercard by 74.0% in the third 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 last quarter. Institutional investors and hedge funds own 97.28% of the company’s stock.

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.