Zacks Investment Research downgraded shares of MasterCard Inc. (NYSE:MA) from a buy rating to a hold rating in a research note published on Friday.
According to Zacks, “MasterCard shares have outperformed Zacks categorized Financial Transaction Services industry over the last three months. The company remains well positioned for growth given its expansion & digital initiatives. Also, gradual shift to electronic payments from paper-based forms should drive revenue growth. The company’s third-quarter 2016 earnings per share beat the Zacks Consensus Estimate. MasterCard’s product-diversification initiatives augur well for the long term. The proposed acquisition of major stake in VocaLink will strengthen its electronic payment capabilities. Increased cross-border volumes, improved pricing, growth of processed transactions and a vast global business continue to drive growth. However, the company is challenged with soft investment results, escalating costs, a challenging forex environment as well as litigations.”
A number of other research analysts have also recently issued reports on MA. Barclays PLC lifted their price objective on shares of MasterCard from $103.00 to $107.00 and gave the company an overweight rating in a research note on Friday, July 29th. Citigroup Inc. boosted their target price on shares of MasterCard from $106.00 to $108.00 and gave the stock a buy rating in a research note on Friday, July 29th. JPMorgan Chase & Co. boosted their target price on shares of MasterCard from $108.00 to $110.00 and gave the stock an overweight rating in a research note on Friday, July 29th. BMO Capital Markets reaffirmed an outperform rating and set a $128.00 target price (up previously from $120.00) on shares of MasterCard in a research note on Friday, July 29th. Finally, Jefferies Group reaffirmed a buy rating on shares of MasterCard in a research note on Friday, August 12th. Eight equities research analysts have rated the stock with a hold rating and twenty-two have given a buy rating to the company. The stock has a consensus rating of Buy and a consensus price target of $110.90.
Shares of MasterCard (NYSE:MA) opened at 105.73 on Friday. MasterCard has a 52 week low of $78.52 and a 52 week high of $108.93. The company’s 50-day moving average price is $103.67 and its 200 day moving average price is $97.75. The firm has a market cap of $115.20 billion, a P/E ratio of 29.23 and a beta of 1.22.
MasterCard (NYSE:MA) last announced its quarterly earnings data on Friday, October 28th. The company reported $1.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.98 by $0.10. The business had revenue of $2.88 billion for the quarter, compared to analysts’ expectations of $2.74 billion. MasterCard had a net margin of 38.11% and a return on equity of 69.11%. The firm’s quarterly revenue was up 14.6% compared to the same quarter last year. During the same period last year, the firm posted $0.91 earnings per share. On average, equities analysts anticipate that MasterCard will post $3.75 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Wednesday, November 9th. Shareholders of record on Monday, October 10th were given a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a yield of 0.72%. The ex-dividend date of this dividend was Wednesday, October 5th. MasterCard’s payout ratio is 20.99%.
In other news, insider Michael Fraccaro sold 2,514 shares of the stock in a transaction that occurred on Wednesday, October 26th. The shares were sold at an average price of $102.99, for a total transaction of $258,916.86. Following the completion of the transaction, the insider now directly owns 5,687 shares of the company’s stock, valued at approximately $585,704.13. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, major shareholder Foundation Mastercard sold 48,424 shares of the stock in a transaction that occurred on Monday, November 21st. The shares were sold at an average price of $104.98, for a total transaction of $5,083,551.52. Following the transaction, the insider now directly owns 114,157,003 shares of the company’s stock, valued at $11,984,202,174.94. The disclosure for this sale can be found here. 3.14% of the stock is currently owned by company insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its position in MasterCard by 0.7% in the second quarter. Vanguard Group Inc. now owns 59,998,942 shares of the company’s stock worth $5,283,508,000 after buying an additional 391,517 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its stake in shares of MasterCard by 10.4% in the third quarter. Price T Rowe Associates Inc. MD now owns 43,801,206 shares of the company’s stock worth $4,457,649,000 after buying an additional 4,111,803 shares during the last quarter. BlackRock Institutional Trust Company N.A. boosted its stake in shares of MasterCard by 1.0% in the third quarter. BlackRock Institutional Trust Company N.A. now owns 26,444,226 shares of the company’s stock worth $2,691,229,000 after buying an additional 261,452 shares during the last quarter. Bank of New York Mellon Corp boosted its stake in shares of MasterCard by 0.8% in the third quarter. Bank of New York Mellon Corp now owns 17,539,994 shares of the company’s stock worth $1,785,045,000 after buying an additional 137,213 shares during the last quarter. Finally, Morgan Stanley boosted its stake in shares of MasterCard by 1.1% in the third quarter. Morgan Stanley now owns 16,332,370 shares of the company’s stock worth $1,662,145,000 after buying an additional 180,787 shares during the last quarter. 74.44% of the stock is owned by hedge funds and other institutional investors.
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.