Mastercard (NYSE:MA) Upgraded at DZ Bank

DZ Bank upgraded shares of Mastercard (NYSE:MA) from a hold rating to a buy rating in a research report report published on Tuesday, MarketBeat.com reports. DZ Bank currently has $620.00 price objective on the credit services provider’s stock.

A number of other equities analysts have also recently weighed in on MA. Piper Sandler reissued an “overweight” rating and set a $635.00 price objective (up from $591.00) on shares of Mastercard in a report on Friday, January 31st. Mizuho lifted their price target on shares of Mastercard from $496.00 to $532.00 and gave the stock an “outperform” rating in a research note on Friday, November 1st. Monness Crespi & Hardt raised shares of Mastercard from a “neutral” rating to a “buy” rating and set a $640.00 price objective for the company in a research note on Friday, January 31st. Robert W. Baird lifted their target price on shares of Mastercard from $545.00 to $575.00 and gave the stock an “outperform” rating in a research report on Wednesday, October 16th. Finally, William Blair reaffirmed an “outperform” rating on shares of Mastercard in a research note on Friday, January 31st. Four research analysts have rated the stock with a hold rating, twenty-four have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $603.08.

Mastercard Price Performance

MA stock opened at $567.12 on Tuesday. The firm has a 50 day simple moving average of $530.33 and a two-hundred day simple moving average of $503.85. The stock has a market cap of $520.52 billion, a PE ratio of 40.83, a P/E/G ratio of 2.23 and a beta of 1.10. Mastercard has a one year low of $428.86 and a one year high of $576.94. The company has a debt-to-equity ratio of 2.68, a current ratio of 1.03 and a quick ratio of 1.29.

Mastercard (NYSE:MA) last announced its earnings results on Thursday, January 30th. The credit services provider reported $3.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.71 by $0.11. Mastercard had a net margin of 45.71% and a return on equity of 188.47%. On average, analysts predict that Mastercard will post 16.04 EPS for the current fiscal year.

Mastercard Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, February 7th. Stockholders of record on Thursday, January 9th will be given a $0.76 dividend. The ex-dividend date of this dividend is Friday, January 10th. This represents a $3.04 annualized dividend and a dividend yield of 0.54%. This is a positive change from Mastercard’s previous quarterly dividend of $0.66. Mastercard’s dividend payout ratio is currently 21.89%.

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

Hedge Funds Weigh In On Mastercard

A number of institutional investors have recently added to or reduced their stakes in MA. Temasek Holdings Private Ltd increased its stake in shares of Mastercard by 2.3% in the 3rd quarter. Temasek Holdings Private Ltd now owns 2,805,554 shares of the credit services provider’s stock worth $1,385,383,000 after acquiring an additional 62,891 shares in the last quarter. Cardano Risk Management B.V. grew its holdings in Mastercard by 2.7% in the fourth quarter. Cardano Risk Management B.V. now owns 368,690 shares of the credit services provider’s stock worth $194,141,000 after purchasing an additional 9,611 shares during the period. Nordea Investment Management AB grew its holdings in Mastercard by 15.6% in the fourth quarter. Nordea Investment Management AB now owns 2,510,756 shares of the credit services provider’s stock worth $1,325,353,000 after purchasing an additional 337,905 shares during the period. Sarasin & Partners LLP increased its stake in shares of Mastercard by 4.7% during the third quarter. Sarasin & Partners LLP now owns 831,942 shares of the credit services provider’s stock valued at $410,813,000 after purchasing an additional 37,486 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its holdings in shares of Mastercard by 2.0% during the third quarter. Charles Schwab Investment Management Inc. now owns 5,010,430 shares of the credit services provider’s stock valued at $2,474,151,000 after purchasing an additional 100,550 shares during the last quarter. Institutional investors own 97.28% of the company’s stock.

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.