Mastercard Incorporated (NYSE:MA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday, November 8th.
According to Zacks, “Mastercard’s stock has outperformed the industry year to date. Its third-quarter 2017 earnings surpassed the Zacks Consensus Estimate, mainly driven by strong transaction, higher cross border volumes and gains from acquisitions. Mastercard is well positioned for growth given its solid market position, ongoing expansion and digital initiatives, and significant opportunities from the secular shift toward electronic payments. The acquisitions of VocaLink and NuData Security complement the company’s efforts to participate in new payment flows and enhance its safety and security offerings. It, however, continues to face increasing costs, a volatile forex environment and legal issues. Also, higher incentives and rewards will put pressure on the bottom line.”
Other research analysts also recently issued research reports about the company. Bank of America Corporation increased their price target on Mastercard from $165.00 to $170.00 and gave the company a “buy” rating in a research note on Monday, November 6th. Cantor Fitzgerald reissued a “buy” rating and issued a $165.00 price target on shares of Mastercard in a research note on Tuesday, October 31st. Loop Capital increased their price target on Mastercard to $167.00 and gave the company a “buy” rating in a research note on Wednesday, November 1st. They noted that the move was a valuation call. BMO Capital Markets reissued an “outperform” rating and issued a $174.00 price target (up previously from $157.00) on shares of Mastercard in a research note on Wednesday, November 1st. Finally, KeyCorp reissued an “overweight” rating and issued a $170.00 price target (up previously from $165.00) on shares of Mastercard in a research note on Wednesday, November 1st. One research analyst has rated the stock with a sell rating, two have given a hold rating and twenty-eight have assigned a buy rating to the company’s stock. The company has an average rating of “Buy” and an average price target of $157.68.
Mastercard (NYSE:MA) last posted its quarterly earnings data on Tuesday, October 31st. The credit services provider reported $1.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.23 by $0.11. Mastercard had a return on equity of 78.38% and a net margin of 38.70%. The firm had revenue of $3.40 billion for the quarter, compared to the consensus estimate of $3.28 billion. During the same quarter in the prior year, the business earned $1.08 EPS. The business’s revenue for the quarter was up 18.1% compared to the same quarter last year. analysts anticipate that Mastercard will post 4.54 earnings per share for the current year.
In other Mastercard news, Director Richard Haythornthwaite sold 5,000 shares of the stock in a transaction dated Monday, October 2nd. The stock was sold at an average price of $142.51, for a total transaction of $712,550.00. Following the completion of the transaction, the director now owns 45,278 shares in the company, valued at approximately $6,452,567.78. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Craig Vosburg sold 14,200 shares of the stock in a transaction dated Thursday, September 21st. The stock was sold at an average price of $141.86, for a total value of $2,014,412.00. Following the transaction, the insider now owns 40,646 shares of the company’s stock, valued at approximately $5,766,041.56. The disclosure for this sale can be found here. Insiders have sold a total of 25,000 shares of company stock worth $3,582,984 in the last ninety days. 0.30% of the stock is currently owned by company insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in MA. Vanguard Group Inc. lifted its stake in Mastercard by 2.3% in the 2nd quarter. Vanguard Group Inc. now owns 65,297,307 shares of the credit services provider’s stock valued at $7,930,357,000 after purchasing an additional 1,490,267 shares during the last quarter. State Street Corp lifted its stake in Mastercard by 0.4% in the 1st quarter. State Street Corp now owns 37,454,824 shares of the credit services provider’s stock valued at $4,212,546,000 after purchasing an additional 140,515 shares during the last quarter. Janus Henderson Group PLC lifted its stake in Mastercard by 784.3% in the 2nd quarter. Janus Henderson Group PLC now owns 16,870,229 shares of the credit services provider’s stock valued at $2,048,899,000 after purchasing an additional 14,962,583 shares during the last quarter. Capital Research Global Investors lifted its stake in Mastercard by 15.8% in the 2nd quarter. Capital Research Global Investors now owns 12,685,589 shares of the credit services provider’s stock valued at $1,540,665,000 after purchasing an additional 1,729,179 shares during the last quarter. Finally, Capital World Investors lifted its stake in Mastercard by 2.3% in the 2nd quarter. Capital World Investors now owns 12,675,652 shares of the credit services provider’s stock valued at $1,539,458,000 after purchasing an additional 289,488 shares during the last quarter. Institutional investors own 75.71% of the company’s stock.
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MasterCard Incorporated is a technology company that connects consumers, financial institutions, merchants, governments and businesses across the world, enabling them to use electronic forms of payment. The Company operates through Payment Solutions segment. The Company allows user to make payments by creating a range of payment solutions and services using its brands, which include MasterCard, Maestro and Cirrus.
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