M.E. Allison & CO. Inc. Invests $254,000 in Mastercard Incorporated (NYSE:MA)

M.E. Allison & CO. Inc. purchased a new position in Mastercard Incorporated (NYSE:MA) in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The fund purchased 483 shares of the credit services provider’s stock, valued at approximately $254,000.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Highline Wealth Partners LLC purchased a new position in shares of Mastercard during the third quarter worth approximately $25,000. Strategic Investment Solutions Inc. IL purchased a new stake in Mastercard during the 2nd quarter valued at about $34,000. First Personal Financial Services bought a new position in Mastercard during the 3rd quarter worth approximately $39,000. Lowe Wealth Advisors LLC increased its stake in Mastercard by 74.0% in the 3rd quarter. Lowe Wealth Advisors LLC now owns 87 shares of the credit services provider’s stock worth $43,000 after purchasing an additional 37 shares during the period. Finally, FSA Wealth Management LLC bought a new position in shares of Mastercard in the third quarter worth approximately $54,000. 97.28% of the stock is currently owned by hedge funds and other institutional investors.

Mastercard Trading Up 0.4 %

Shares of NYSE MA opened at $525.22 on Monday. The firm’s 50 day moving average price is $524.28 and its 200-day moving average price is $494.59. Mastercard Incorporated has a 52-week low of $427.45 and a 52-week high of $537.70. The company has a debt-to-equity ratio of 2.36, a quick ratio of 1.29 and a current ratio of 1.29. The company has a market cap of $482.06 billion, a PE ratio of 39.73, a P/E/G ratio of 2.00 and a beta of 1.10.

Mastercard (NYSE:MA) last released its quarterly earnings data on Thursday, October 31st. The credit services provider reported $3.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.73 by $0.16. The business had revenue of $7.37 billion for the quarter, compared to analysts’ expectations of $7.27 billion. Mastercard had a return on equity of 178.27% and a net margin of 45.26%. The firm’s quarterly revenue 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 expect that Mastercard Incorporated will post 14.46 EPS for the current fiscal year.

Mastercard declared that its Board of Directors has authorized a share buyback plan on Tuesday, December 17th that authorizes the company to buyback $12.00 billion in outstanding shares. This buyback authorization authorizes the credit services provider to buy up to 2.5% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its shares are undervalued.

Mastercard Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, February 7th. Investors of record on Thursday, January 9th will be given a dividend of $0.76 per share. The ex-dividend date is Friday, January 10th. This is a boost from Mastercard’s previous quarterly dividend of $0.66. This represents a $3.04 annualized dividend and a dividend yield of 0.58%. Mastercard’s dividend payout ratio (DPR) is 19.97%.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on MA. BMO Capital Markets increased their target price on shares of Mastercard from $550.00 to $565.00 and gave the stock an “outperform” rating in a report on Thursday, November 14th. William Blair reiterated an “outperform” rating on shares of Mastercard in a report on Monday, November 25th. Oppenheimer dropped their target price 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. JPMorgan Chase & Co. reduced their price target on shares of Mastercard from $593.00 to $580.00 and set an “overweight” rating on the stock in a research report on Friday, November 1st. Finally, Royal Bank of Canada restated an “outperform” rating and issued a $572.00 price objective on shares of Mastercard in a report on Thursday, November 14th. Four research analysts have rated the stock with a hold rating, twenty-two have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Mastercard has a consensus rating of “Moderate Buy” and a consensus price target of $566.63.

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.