Mastercard (NYSE:MA) Shares Up 1.4% After Better-Than-Expected Earnings

Mastercard Incorporated (NYSE:MA)’s stock price shot up 1.4% during mid-day trading on Friday following a stronger than expected earnings report. The company traded as high as $507.97 and last traded at $506.65. 758,380 shares changed hands during trading, a decline of 69% from the average session volume of 2,435,617 shares. The stock had previously closed at $499.59.

The credit services provider reported $3.89 EPS for the quarter, beating the consensus estimate of $3.73 by $0.16. The firm had revenue of $7.37 billion for the quarter, compared to analysts’ expectations of $7.27 billion. Mastercard had a return on equity of 179.78% and a net margin of 46.45%. The firm’s revenue was up 12.8% compared to the same quarter last year. During the same period last year, the firm earned $3.39 EPS.

Mastercard Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, November 8th. Shareholders of record on Wednesday, October 9th will be paid a dividend of $0.66 per share. This represents a $2.64 dividend on an annualized basis and a yield of 0.52%. The ex-dividend date is Wednesday, October 9th. Mastercard’s payout ratio is currently 20.18%.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. Bank of America raised their price objective on shares of Mastercard from $480.00 to $509.00 and gave the company a “neutral” rating in a research report on Tuesday, September 17th. Oppenheimer assumed coverage on shares of Mastercard in a report on Tuesday, October 1st. They set an “outperform” rating and a $591.00 price target for the company. BNP Paribas downgraded Mastercard from an “outperform” rating to a “neutral” rating and set a $470.00 target price on the stock. in a research note on Tuesday, September 3rd. Susquehanna increased their price target on shares of Mastercard from $540.00 to $605.00 and gave the stock a “positive” rating in a research note on Friday. Finally, Robert W. Baird raised their price objective on Mastercard from $545.00 to $575.00 and gave the company an “outperform” rating in a research note on Wednesday, October 16th. Four investment analysts have rated the stock with a hold rating, twenty have assigned a buy rating and three have issued a strong buy rating to the stock. According to MarketBeat.com, Mastercard presently has a consensus rating of “Moderate Buy” and a consensus price target of $537.92.

Insider Transactions at Mastercard

In other news, CFO J. Mehra Sachin sold 13,439 shares of the company’s stock in a transaction dated Monday, August 5th. The shares were sold at an average price of $455.00, for a total value of $6,114,745.00. Following the sale, the chief financial officer now owns 27,304 shares of the company’s stock, valued at approximately $12,423,320. This represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. In other news, CMO Venkata R. Madabhushi sold 4,685 shares of the company’s stock in a transaction on Friday, September 13th. The stock was sold at an average price of $493.10, for a total transaction of $2,310,173.50. Following the transaction, the chief marketing officer now owns 17,118 shares of the company’s stock, valued at $8,440,885.80. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO J. Mehra Sachin sold 13,439 shares of the firm’s stock in a transaction dated Monday, August 5th. The shares were sold at an average price of $455.00, for a total transaction of $6,114,745.00. Following the completion of the transaction, the chief financial officer now directly owns 27,304 shares in the company, valued at $12,423,320. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 340,809 shares of company stock valued at $159,610,703. Corporate insiders own 0.10% of the company’s stock.

Hedge Funds Weigh In On Mastercard

Several large investors have recently bought and sold shares of the business. Highline Wealth Partners LLC bought a new stake in Mastercard in the third quarter valued at about $25,000. Palisade Asset Management LLC acquired a new stake in shares of Mastercard in the 1st quarter valued at approximately $27,000. Strategic Investment Solutions Inc. IL bought a new position in Mastercard during the 2nd quarter worth approximately $34,000. Fairway Wealth LLC acquired a new position in Mastercard during the second quarter valued at approximately $35,000. Finally, First Personal Financial Services bought a new stake in Mastercard in the third quarter valued at approximately $39,000. 97.28% of the stock is currently owned by institutional investors and hedge funds.

Mastercard Trading Up 1.7 %

The company has a market capitalization of $469.52 billion, a price-to-earnings ratio of 38.86, a price-to-earnings-growth ratio of 2.27 and a beta of 1.10. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 1.95. The company’s fifty day simple moving average is $495.77 and its two-hundred day simple moving average is $466.84.

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.