Mastercard (NYSE:MA) Sets New 52-Week High Following Analyst Upgrade

Mastercard Incorporated (NYSE:MA) shares reached a new 52-week high during trading on Monday after Piper Sandler raised their price target on the stock from $575.00 to $591.00. Piper Sandler currently has an overweight rating on the stock. Mastercard traded as high as $538.21 and last traded at $539.39, with a volume of 613067 shares. The stock had previously closed at $533.49.

MA has been the subject of several other reports. TD Cowen boosted their target price on Mastercard from $533.00 to $567.00 and gave the company a “buy” rating in a report on Friday, November 15th. Citigroup raised their price objective on shares of Mastercard from $572.00 to $584.00 and gave the stock a “buy” rating in a research report on Tuesday, January 14th. Keefe, Bruyette & Woods increased their price objective on Mastercard from $580.00 to $618.00 and gave the stock an “outperform” rating in a research report on Monday, December 9th. Susquehanna boosted their price target on shares of Mastercard from $540.00 to $605.00 and gave the stock a “positive” rating in a research note on Friday, November 1st. Finally, BMO Capital Markets increased their price objective on Mastercard from $550.00 to $565.00 and gave the stock an “outperform” rating in a research report on Thursday, November 14th. Four investment analysts have rated the stock with a hold rating, twenty-two have given a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $567.29.

Institutional Trading of Mastercard

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Highline Wealth Partners LLC bought a new stake in shares of Mastercard during the 3rd quarter valued at about $25,000. Strategic Investment Solutions Inc. IL bought a new position in Mastercard during the 2nd quarter worth $34,000. First Personal Financial Services acquired a new stake in Mastercard in the third quarter worth $39,000. Lowe Wealth Advisors LLC lifted its stake 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 buying an additional 37 shares during the last quarter. Finally, FSA Wealth Management LLC bought a new position in shares of Mastercard during the third quarter worth about $54,000. Institutional investors own 97.28% of the company’s stock.

Mastercard Stock Performance

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 stock’s fifty day moving average is $524.77 and its two-hundred day moving average is $497.91. The firm has a market cap of $495.61 billion, a price-to-earnings ratio of 40.88, a PEG ratio of 2.10 and a beta of 1.10.

Mastercard (NYSE:MA) last released its quarterly earnings results on Thursday, October 31st. The credit services provider reported $3.89 EPS for the quarter, topping analysts’ consensus estimates of $3.73 by $0.16. Mastercard had a net margin of 45.26% and a return on equity of 178.27%. The company had revenue of $7.37 billion for the quarter, compared to the consensus estimate of $7.27 billion. During the same period in the previous year, the firm earned $3.39 EPS. Mastercard’s revenue was up 12.8% on a year-over-year basis. On average, analysts expect that Mastercard Incorporated will post 14.47 earnings per share for the current fiscal year.

Mastercard Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, February 7th. Investors of record on Thursday, January 9th will be issued a $0.76 dividend. This is an increase from Mastercard’s previous quarterly dividend of $0.66. This represents a $3.04 dividend on an annualized basis and a dividend yield of 0.56%. The ex-dividend date is Friday, January 10th. Mastercard’s payout ratio is presently 23.00%.

Mastercard announced that its Board of Directors has approved a share 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 reacquire up to 2.5% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board believes its shares are undervalued.

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.