Mastercard (NYSE:MA) Hits New 52-Week High After Dividend Announcement

Mastercard Incorporated (NYSE:MA)’s share price reached a new 52-week high during mid-day trading on Wednesday following a dividend announcement from the company. The company traded as high as $537.00 and last traded at $535.88, with a volume of 769645 shares. The stock had previously closed at $531.01.

The newly announced dividend which will be paid on Friday, February 7th. Investors of record on Thursday, January 9th will be given a dividend of $0.76 per share. This represents a $3.04 annualized dividend and a dividend yield of 0.58%. This is a boost from Mastercard’s previous quarterly dividend of $0.66. The ex-dividend date is Thursday, January 9th. Mastercard’s payout ratio is presently 19.97%.

Analyst Ratings Changes

Several research analysts have recently weighed in on MA shares. BNP Paribas cut Mastercard from an “outperform” rating to a “neutral” rating and set a $470.00 target price on the stock. in a report on Tuesday, September 3rd. Citigroup boosted their price objective on Mastercard from $566.00 to $572.00 and gave the stock a “buy” rating in a research note on Monday, November 4th. Jefferies Financial Group raised their target price on Mastercard from $590.00 to $610.00 and gave the stock a “buy” rating in a research note on Monday, December 9th. Barclays lifted their price target on Mastercard from $536.00 to $576.00 and gave the stock an “overweight” rating in a report on Thursday, October 10th. Finally, Oppenheimer began coverage on shares of Mastercard in a report on Tuesday, October 1st. They issued an “outperform” rating and a $591.00 price objective for the company. Four investment analysts have rated the stock with a hold rating, twenty-three have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $562.88.

Mastercard Stock Down 2.1 %

The firm has a 50-day moving average price of $519.10 and a two-hundred day moving average price of $483.15. The firm has a market cap of $477.24 billion, a price-to-earnings ratio of 39.33, a price-to-earnings-growth ratio of 2.38 and a beta of 1.10. The company has a debt-to-equity ratio of 2.36, a quick ratio of 1.29 and a current ratio of 1.29.

Mastercard (NYSE:MA) last posted its earnings results on Thursday, October 31st. The credit services provider reported $3.89 EPS for the quarter, beating 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 firm had revenue of $7.37 billion for the quarter, compared to the consensus estimate of $7.27 billion. During the same period last year, the firm posted $3.39 EPS. The company’s revenue was up 12.8% on a year-over-year basis. On average, sell-side analysts forecast that Mastercard Incorporated will post 14.47 earnings per share for the current year.

Mastercard announced that its board has authorized a stock buyback plan on Tuesday, December 17th that permits the company to repurchase $12.00 billion in shares. This repurchase authorization permits the credit services provider to purchase up to 2.5% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

Insider Transactions at Mastercard

In related news, CMO Venkata R. Madabhushi sold 4,685 shares of the business’s stock in a transaction dated Friday, September 20th. The stock was 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 owns 15,031 shares in the company, valued at $7,363,085.66. The trade was a 23.76 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Insiders own 0.10% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Highline Wealth Partners LLC purchased a new position in Mastercard in the third quarter worth $25,000. Strategic Investment Solutions Inc. IL acquired a new position in shares of Mastercard during the 2nd quarter worth $34,000. First Personal Financial Services purchased a new position in shares of Mastercard in the 3rd quarter valued at about $39,000. Fairway Wealth LLC acquired a new stake in shares of Mastercard in the second quarter valued at about $35,000. Finally, Lowe Wealth Advisors LLC boosted its holdings in Mastercard by 74.0% during the third quarter. Lowe Wealth Advisors LLC now owns 87 shares of the credit services provider’s stock worth $43,000 after buying an additional 37 shares in the last quarter. 97.28% of the stock is currently owned by institutional investors and hedge funds.

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.