Mastercard (NYSE:MA – Get Free Report) was downgraded by analysts at Freedom Broker from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Thursday, Marketbeat reports. They currently have a $725.00 price target on the credit services provider’s stock, up from their prior price target of $620.00. Freedom Broker‘s price objective indicates a potential upside of 10.95% from the stock’s current price.
A number of other research analysts also recently weighed in on the stock. Piper Sandler increased their target price on shares of Mastercard from $597.00 to $710.00 and gave the company an “overweight” rating in a research report on Friday, July 31st. Loop Capital lifted their price target on shares of Mastercard from $631.00 to $647.00 and gave the stock a “buy” rating in a report on Friday, July 31st. Wells Fargo & Company upped their price objective on Mastercard from $668.00 to $731.00 and gave the company an “overweight” rating in a research note on Friday, October 30th. Susquehanna increased their price objective on Mastercard from $665.00 to $740.00 and gave the company a “positive” rating in a report on Friday, October 30th. Finally, Argus raised their target price on Mastercard from $640.00 to $694.00 and gave the stock a “buy” rating in a research report on Friday, October 30th. Two analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $704.62.
Read Our Latest Stock Report on MA
Mastercard Stock Performance
Mastercard (NYSE:MA – Get Free Report) last released its earnings results on Thursday, October 29th. The credit services provider reported $5.31 EPS for the quarter, topping analysts’ consensus estimates of $5.17 by $0.14. Mastercard had a return on equity of 260.86% and a net margin of 46.73%. The company had revenue of $9.81 billion for the quarter, compared to analysts’ expectations of $9.66 billion. During the same period in the previous year, the business posted $4.38 EPS. The business’s revenue for the quarter was up 14.0% compared to the same quarter last year. Research analysts expect that Mastercard will post 20.00 EPS for the current fiscal year.
Insider Activity at Mastercard
In other news, CFO Ling Hai sold 4,318 shares of the firm’s stock in a transaction on Friday, October 30th. The stock was sold at an average price of $642.43, for a total value of $2,774,012.74. Following the completion of the transaction, the chief financial officer directly owned 35,750 shares of the company’s stock, valued at $22,966,872.50. This trade represents a 10.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Sachin Mehra sold 7,444 shares of Mastercard stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $577.13, for a total value of $4,296,155.72. Following the completion of the transaction, the insider owned 40,916 shares of the company’s stock, valued at approximately $23,613,851.08. This trade represents a 15.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 25,403 shares of company stock worth $15,428,736. Corporate insiders own 0.09% of the company’s stock.
Institutional Trading of Mastercard
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Robinswood Financial LLC purchased a new stake in shares of Mastercard in the first quarter worth about $25,000. Next Level Wealth Planning LLC purchased a new position in Mastercard during the third quarter valued at approximately $31,000. Allied Private Wealth LLC purchased a new position in Mastercard during the second quarter valued at approximately $34,000. Premier Financial Group bought a new stake in Mastercard during the 2nd quarter worth approximately $39,000. Finally, Roxbury Financial LLC increased its holdings in Mastercard by 102.6% during the 2nd quarter. Roxbury Financial LLC now owns 79 shares of the credit services provider’s stock worth $40,000 after acquiring an additional 40 shares during the period. 97.28% of the stock is currently owned by institutional investors.
Mastercard News Summary
Here are the key news stories impacting Mastercard this week:
- Positive Sentiment: Q3 results beat expectations: revenue rose 14% year over year to $9.81 billion and adjusted EPS increased 21.2%. Services revenue grew 19%, although higher incentives were flagged as a concern. Mastercard’s 19% Services Growth Steals the Q3 Show: Buy or Hold MA?
- Positive Sentiment: Truist raised its price target to $735 and maintained a Buy rating, signaling potential upside in its view. Truist Financial rating information
- Negative Sentiment: Freedom Broker downgraded MA from Buy to Hold, despite lifting its target to $725. The mixed call may temper enthusiasm after the stock’s recent rally. Freedom Broker rating information
- Negative Sentiment: Valuation is a key risk: coverage notes the recent rally has outpaced changes in earnings estimates, leaving less room for disappointment. Rising incentives could also weigh on margins. Mastercard Stock Rose 22% in a Month. Here’s What Its Price Now Assumes
- Negative Sentiment: Visa and Mastercard face additional collective claims in the UK over card fees, adding potential legal and financial uncertainty. Visa and Mastercard face additional £5bn collective claims over card fees
- Neutral Sentiment: The CFO sold about $2.77 million of MA shares. The sale may attract attention, but the report provides no context on its purpose. Mastercard CFO stock sale
Mastercard Company Profile
Mastercard Incorporated is a global payments technology company that operates a network connecting consumers, merchants, financial institutions, businesses and governments. Its network supports electronic payments, including transactions made with Mastercard-branded credit, debit and prepaid cards, as well as digital payment methods.
The company provides technology for authorizing, clearing and settling transactions. It also offers services related to cybersecurity, identity verification, data analytics, fraud prevention and payment consulting.
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