Mastercard (NYSE:MA) Shares Up 0.6% – Should You Buy?

Mastercard Incorporated (NYSE:MA) shot up 0.6% on Tuesday . The company traded as high as $516.05 and last traded at $515.07. 442,855 shares were traded during mid-day trading, a decline of 77% from the average session volume of 1,922,547 shares. The stock had previously closed at $511.93.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on MA shares. Citigroup lifted their price target on Mastercard from $566.00 to $572.00 and gave the company a “buy” rating in a research report on Monday, November 4th. Deutsche Bank Aktiengesellschaft increased their price target on shares of Mastercard from $510.00 to $580.00 and gave the stock a “buy” rating in a report on Friday, November 1st. William Blair reiterated an “outperform” rating on shares of Mastercard in a research report on Monday, November 25th. Robert W. Baird raised their price target on Mastercard from $545.00 to $575.00 and gave the company an “outperform” rating in a research report on Wednesday, October 16th. Finally, TD Cowen upped their price objective on Mastercard from $533.00 to $567.00 and gave the stock a “buy” rating in a report on Friday, November 15th. Three equities research analysts have rated the stock with a hold rating, twenty-three have issued a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $562.76.

Mastercard Trading Up 0.3 %

The stock has a 50-day simple moving average of $523.65 and a two-hundred day simple moving average of $490.70. The company has a debt-to-equity ratio of 2.36, a quick ratio of 1.29 and a current ratio of 1.29. The firm has a market cap of $471.09 billion, a PE ratio of 38.82, a price-to-earnings-growth ratio of 2.36 and a beta of 1.10.

Mastercard (NYSE:MA) last issued 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 company had revenue of $7.37 billion for the quarter, compared to analysts’ expectations of $7.27 billion. Mastercard had a net margin of 45.26% and a return on equity of 178.27%. The firm’s quarterly revenue was up 12.8% on a year-over-year basis. During the same quarter last year, the company posted $3.39 earnings per share. As a group, sell-side analysts anticipate that Mastercard Incorporated will post 14.47 EPS for the current year.

Mastercard Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, February 7th. Stockholders of record on Thursday, January 9th will be paid a $0.76 dividend. This represents a $3.04 annualized dividend and a dividend yield of 0.59%. The ex-dividend date is Friday, January 10th. This is a boost from Mastercard’s previous quarterly dividend of $0.66. Mastercard’s dividend payout ratio is 23.00%.

Mastercard announced that its Board of Directors has approved a share buyback plan on Tuesday, December 17th that allows the company to buyback $12.00 billion in shares. This buyback authorization allows the credit services provider to purchase up to 2.5% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s management believes its shares are undervalued.

Institutional Trading of Mastercard

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Goldstein Advisors LLC raised its holdings in Mastercard by 1.3% during the third quarter. Goldstein Advisors LLC now owns 1,516 shares of the credit services provider’s stock worth $749,000 after purchasing an additional 20 shares during the last quarter. Community Bank N.A. increased its position in shares of Mastercard by 0.9% in the third quarter. Community Bank N.A. now owns 2,190 shares of the credit services provider’s stock valued at $1,081,000 after buying an additional 20 shares in the last quarter. Raab & Moskowitz Asset Management LLC raised its stake in shares of Mastercard by 1.5% during the 3rd quarter. Raab & Moskowitz Asset Management LLC now owns 1,398 shares of the credit services provider’s stock worth $690,000 after buying an additional 20 shares during the last quarter. Boltwood Capital Management boosted its position in shares of Mastercard by 1.0% in the 4th quarter. Boltwood Capital Management now owns 2,055 shares of the credit services provider’s stock worth $1,082,000 after buying an additional 20 shares in the last quarter. Finally, McLean Asset Management Corp grew its stake in Mastercard by 1.3% in the 3rd quarter. McLean Asset Management Corp now owns 1,677 shares of the credit services provider’s stock valued at $834,000 after acquiring an additional 21 shares during the last quarter. Hedge funds and other institutional investors own 97.28% of the company’s stock.

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.