Zacks Investment Research upgraded shares of MasterCard Inc. (NYSE:MA) from a hold rating to a buy rating in a research report released on Wednesday. The firm currently has $114.00 price target on the stock.
According to Zacks, “MasterCard’s product-diversification and geographic-expansion initiatives augur long-term growth. The company’s multiple acquisitions over the past couple of years are also boosting inorganic growth. The recently announced buyout of VocaLink will further strengthen its electronic payment capabilities. Increased cross-border volumes, improved pricing, growth of processed transactions and vast global business continue to drive growth.The partnership with PayPal will give MasterCard higher prominence in online transactions, by funneling more transactions through its network. However, the company is challenged with soft investment results, integration of acquisitions, a challenging forex environment, higher rebates and incentives as well as litigations.”
Other equities research analysts have also issued reports about the stock. BMO Capital Markets reiterated an outperform rating and set a $128.00 target price (up from $120.00) on shares of MasterCard in a research report on Friday, July 29th. Wells Fargo & Co. reiterated a market perform rating and set a $105.00 target price on shares of MasterCard in a research report on Wednesday, June 15th. Goldman Sachs Group Inc. reiterated a buy rating and set a $118.00 target price on shares of MasterCard in a research report on Monday, July 18th. Jefferies Group reiterated a buy rating on shares of MasterCard in a research report on Thursday, August 25th. Finally, Barclays PLC dropped their target price on shares of MasterCard from $105.00 to $103.00 and set an overweight rating for the company in a research report on Thursday, July 7th. Seven research analysts have rated the stock with a hold rating and twenty-four have given a buy rating to the company. The stock has a consensus rating of Buy and a consensus price target of $109.71.
Shares of MasterCard (NYSE:MA) opened at 101.77 on Wednesday. MasterCard has a 52-week low of $78.52 and a 52-week high of $102.31. The firm has a market capitalization of $111.72 billion, a PE ratio of 29.85 and a beta of 1.18. The stock’s 50 day moving average is $98.43 and its 200 day moving average is $95.36.
MasterCard (NYSE:MA) last announced its earnings results on Thursday, July 28th. The company reported $0.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.90 by $0.06. MasterCard had a net margin of 37.39% and a return on equity of 66.32%. The business earned $2.70 billion during the quarter, compared to analyst estimates of $2.59 billion. During the same period in the previous year, the business posted $0.85 earnings per share. MasterCard’s revenue for the quarter was up 12.7% on a year-over-year basis. On average, equities research analysts forecast that MasterCard will post $3.63 EPS for the current year.
The business also recently announced a quarterly dividend, which will be paid on Wednesday, November 9th. Shareholders of record on Monday, October 10th will be paid a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a yield of 0.75%. The ex-dividend date of this dividend is Wednesday, October 5th. MasterCard’s dividend payout ratio is currently 22.35%.
In other news, major shareholder Foundation Mastercard sold 84,000 shares of the stock in a transaction that occurred on Monday, July 18th. The shares were sold at an average price of $91.17, for a total value of $7,658,280.00. Following the transaction, the insider now owns 115,148,971 shares in the company, valued at approximately $10,498,131,686.07. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Martina Hundmejean sold 94,345 shares of the stock in a transaction that occurred on Monday, August 8th. The stock was sold at an average price of $96.82, for a total transaction of $9,134,482.90. Following the completion of the transaction, the chief financial officer now owns 214,968 shares in the company, valued at approximately $20,813,201.76. The disclosure for this sale can be found here. Company insiders own 3.14% of the company’s stock.
Several institutional investors have recently modified their holdings of MA. Inspirion Wealth Advisors LLC boosted its position in shares of MasterCard by 3.4% in the first quarter. Inspirion Wealth Advisors LLC now owns 6,100 shares of the company’s stock valued at $576,000 after buying an additional 200 shares during the period. Glenmede Trust Co. NA boosted its position in shares of MasterCard by 17.3% in the first quarter. Glenmede Trust Co. NA now owns 327,291 shares of the company’s stock valued at $30,927,000 after buying an additional 48,304 shares during the period. Raub Brock Capital Management LP boosted its position in shares of MasterCard by 2.6% in the first quarter. Raub Brock Capital Management LP now owns 143,534 shares of the company’s stock valued at $13,564,000 after buying an additional 3,679 shares during the period. Chesley Taft & Associates LLC boosted its position in shares of MasterCard by 0.7% in the first quarter. Chesley Taft & Associates LLC now owns 63,885 shares of the company’s stock valued at $6,037,000 after buying an additional 450 shares during the period. Finally, RDL Financial Inc. boosted its position in shares of MasterCard by 76.4% in the first quarter. RDL Financial Inc. now owns 13,689 shares of the company’s stock valued at $1,294,000 after buying an additional 5,927 shares during the period. Hedge funds and other institutional investors own 75.12% of the company’s stock.
MasterCard Company Profile
MasterCard Incorporated is a technology company that connects consumers, financial institutions, merchants, governments and businesses across the world. The Company operates through payment solutions segment. The Company allows user to make payments by a range of payment solutions and services using various brands, which include MasterCard, Maestro and Cirrus.
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