Mastercard (NYSE:MA) Shares Down 0.5% After Analyst Downgrade

Shares of Mastercard Incorporated (NYSE:MA) were down 0.5% on Monday after JPMorgan Chase & Co. lowered their price target on the stock from $593.00 to $580.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Mastercard traded as low as $504.28 and last traded at $505.54. Approximately 531,058 shares changed hands during trading, a decline of 78% from the average daily volume of 2,440,976 shares. The stock had previously closed at $508.08.

A number of other analysts have also recently commented on the company. Citigroup lifted their price target on Mastercard from $528.00 to $538.00 and gave the stock a “buy” rating in a research report on Thursday, August 1st. Royal Bank of Canada upped their target price on Mastercard from $500.00 to $526.00 and gave the company an “outperform” rating in a research report on Thursday, August 1st. BMO Capital Markets reiterated an “outperform” rating and issued a $520.00 price target on shares of Mastercard in a report on Wednesday, August 14th. Piper Sandler restated an “overweight” rating and set a $565.00 price objective (up from $536.00) on shares of Mastercard in a research note on Friday. Finally, Susquehanna increased their price objective on shares of Mastercard from $535.00 to $540.00 and gave the stock a “positive” rating in a research note on Thursday, August 1st. Four research analysts have rated the stock with a hold rating, twenty have assigned a buy rating and three have given a strong buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $540.17.

Insider Activity at Mastercard

In other news, major shareholder Foundation Mastercard sold 119,000 shares of Mastercard stock in a transaction that occurred on Friday, August 16th. The stock was sold at an average price of $468.46, for a total value of $55,746,740.00. Following the sale, the insider now directly owns 92,033,308 shares of the company’s stock, valued at $43,113,923,465.68. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. In other Mastercard news, CMO Venkata R. Madabhushi sold 4,685 shares of the firm’s stock in a transaction that occurred on Friday, September 20th. The shares were sold at an average price of $489.86, for a total value of $2,294,994.10. Following the transaction, the chief marketing officer now directly owns 15,031 shares of the company’s stock, valued at $7,363,085.66. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, major shareholder Foundation Mastercard sold 119,000 shares of the company’s stock in a transaction that occurred on Friday, August 16th. The shares were sold at an average price of $468.46, for a total value of $55,746,740.00. Following the completion of the sale, the insider now owns 92,033,308 shares of the company’s stock, valued at $43,113,923,465.68. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 327,370 shares of company stock valued at $153,495,958. 0.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Mastercard

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Highline Wealth Partners LLC acquired a new position in Mastercard in the 3rd quarter valued at about $25,000. Strategic Investment Solutions Inc. IL purchased a new position in shares of Mastercard during the 2nd quarter worth $34,000. Fairway Wealth LLC acquired a new stake in shares of Mastercard during the 2nd quarter worth about $35,000. First Personal Financial Services purchased a new stake in Mastercard in the 3rd quarter valued at about $39,000. Finally, Lowe Wealth Advisors LLC raised its stake in shares of Mastercard by 74.0% in the 3rd quarter. Lowe Wealth Advisors LLC now owns 87 shares of the credit services provider’s stock valued at $43,000 after acquiring an additional 37 shares during the period. Institutional investors and hedge funds own 97.28% of the company’s stock.

Mastercard Price Performance

The stock has a market cap of $467.08 billion, a PE ratio of 38.24, a PEG ratio of 2.21 and a beta of 1.10. The company has a debt-to-equity ratio of 2.36, a quick ratio of 1.14 and a current ratio of 1.29. The stock’s 50-day moving average is $496.51 and its two-hundred day moving average is $467.30.

Mastercard (NYSE:MA) last posted its earnings results on Thursday, October 31st. The credit services provider reported $3.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.73 by $0.16. The firm had revenue of $7.37 billion for the quarter, compared to analyst estimates of $7.27 billion. Mastercard had a return on equity of 178.27% and a net margin of 45.26%. Mastercard’s revenue was up 12.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $3.39 EPS. On average, equities analysts predict that Mastercard Incorporated will post 14.35 earnings per share for the current year.

Mastercard Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 8th. Shareholders of record on Wednesday, October 9th will be issued a dividend of $0.66 per share. The ex-dividend date of this dividend is Wednesday, October 9th. This represents a $2.64 dividend on an annualized basis and a yield of 0.52%. Mastercard’s dividend payout ratio (DPR) is presently 19.97%.

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.