Traders Buy Shares of Mastercard (MA) on Weakness

Traders bought shares of Mastercard Incorporated (NYSE:MA) on weakness during trading on Monday. $344.48 million flowed into the stock on the tick-up and $243.55 million flowed out of the stock on the tick-down, for a money net flow of $100.93 million into the stock. Of all equities tracked, Mastercard had the 16th highest net in-flow for the day. Mastercard traded down ($5.96) for the day and closed at $164.59

A number of brokerages have commented on MA. Vetr upgraded Mastercard from a “sell” rating to a “hold” rating and set a $158.70 target price on the stock in a research note on Thursday, January 11th. Zacks Investment Research upgraded Mastercard from a “hold” rating to a “buy” rating and set a $191.00 target price on the stock in a research note on Monday. Sanford C. Bernstein restated a “buy” rating and issued a $180.00 target price (up previously from $166.00) on shares of Mastercard in a research note on Monday, December 11th. Loop Capital boosted their target price on Mastercard to $193.00 and gave the company a “positive” rating in a research note on Friday. They noted that the move was a valuation call. Finally, Argus upgraded Mastercard from a “hold” rating to a “buy” rating and set a $200.00 target price on the stock in a research note on Friday. One research analyst has rated the stock with a sell rating, two have issued a hold rating and thirty have assigned a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and a consensus price target of $176.64.

The stock has a market cap of $174,250.00, a P/E ratio of 45.09, a PEG ratio of 1.80 and a beta of 1.26. The company has a debt-to-equity ratio of 0.99, a current ratio of 1.57 and a quick ratio of 1.66.

Mastercard (NYSE:MA) last released its quarterly earnings results on Thursday, February 1st. The credit services provider reported $1.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.12 by $0.02. Mastercard had a return on equity of 83.57% and a net margin of 31.33%. The company had revenue of $3.31 billion during the quarter, compared to the consensus estimate of $3.25 billion. During the same quarter in the prior year, the company posted $0.86 EPS. The firm’s revenue was up 20.2% on a year-over-year basis. sell-side analysts predict that Mastercard Incorporated will post 5.62 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 9th. Investors of record on Monday, April 9th will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 0.61%. Mastercard’s dividend payout ratio is presently 27.40%.

Mastercard declared that its board has authorized a stock repurchase program on Monday, December 4th that allows the company to buyback $4.00 billion in shares. This buyback authorization allows the credit services provider to reacquire shares of its stock through open market purchases. Shares buyback programs are often a sign that the company’s board believes its shares are undervalued.

In related news, insider Edward Grunde Mclaughlin sold 17,167 shares of the business’s stock in a transaction dated Tuesday, January 2nd. The stock was sold at an average price of $151.81, for a total transaction of $2,606,122.27. Following the completion of the transaction, the insider now owns 47,901 shares of the company’s stock, valued at approximately $7,271,850.81. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.30% of the stock is currently owned by insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Massey Quick Simon & CO. LLC acquired a new position in Mastercard in the 3rd quarter valued at approximately $102,000. Wealthcare Advisory Partners LLC acquired a new position in Mastercard in the 3rd quarter valued at approximately $106,000. Thompson Davis & CO. Inc. raised its holdings in Mastercard by 170.1% in the 2nd quarter. Thompson Davis & CO. Inc. now owns 867 shares of the credit services provider’s stock valued at $105,000 after acquiring an additional 546 shares in the last quarter. Cerebellum GP LLC acquired a new position in Mastercard in the 4th quarter valued at approximately $133,000. Finally, Mitsubishi UFJ Securities Holdings Co. Ltd. raised its holdings in Mastercard by 63.0% in the 4th quarter. Mitsubishi UFJ Securities Holdings Co. Ltd. now owns 880 shares of the credit services provider’s stock valued at $133,000 after acquiring an additional 340 shares in the last quarter. 75.79% of the stock is owned by institutional investors and hedge funds.

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About Mastercard

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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