Retirement Systems of Alabama Lowers Stake in Mastercard Incorporated (NYSE:MA)

Retirement Systems of Alabama trimmed its holdings in Mastercard Incorporated (NYSE:MA) by 0.7% in the fourth quarter, according to its most recent disclosure with the SEC. The fund owned 358,154 shares of the credit services provider’s stock after selling 2,359 shares during the period. Mastercard accounts for approximately 0.7% of Retirement Systems of Alabama’s portfolio, making the stock its 16th largest position. Retirement Systems of Alabama’s holdings in Mastercard were worth $188,593,000 as of its most recent SEC filing.

Several other hedge funds have also made changes to their positions in MA. International Assets Investment Management LLC boosted its stake in shares of Mastercard by 120,665.3% in the third quarter. International Assets Investment Management LLC now owns 8,041,758 shares of the credit services provider’s stock valued at $3,971,020,000 after buying an additional 8,035,099 shares in the last quarter. Bank of Montreal Can grew its position in Mastercard by 51.7% during the third quarter. Bank of Montreal Can now owns 5,765,714 shares of the credit services provider’s stock worth $2,846,187,000 after buying an additional 1,965,782 shares during the period. FMR LLC increased its holdings in Mastercard by 3.4% in the third quarter. FMR LLC now owns 21,355,081 shares of the credit services provider’s stock valued at $10,545,139,000 after buying an additional 700,769 shares in the last quarter. Geode Capital Management LLC raised its holdings in Mastercard by 2.5% during the third quarter. Geode Capital Management LLC now owns 18,375,053 shares of the credit services provider’s stock worth $9,043,972,000 after purchasing an additional 453,773 shares during the last quarter. Finally, Montrusco Bolton Investments Inc. raised its stake in shares of Mastercard by 52.8% during the 3rd quarter. Montrusco Bolton Investments Inc. now owns 1,185,081 shares of the credit services provider’s stock worth $573,017,000 after buying an additional 409,334 shares during the last quarter. Institutional investors and hedge funds own 97.28% of the company’s stock.

Mastercard Price Performance

Shares of MA opened at $559.21 on Wednesday. The firm has a market capitalization of $513.26 billion, a price-to-earnings ratio of 40.26, a price-to-earnings-growth ratio of 2.23 and a beta of 1.10. The stock’s fifty day moving average is $529.03 and its 200-day moving average is $502.60. Mastercard Incorporated has a one year low of $428.86 and a one year high of $576.94. The company has a debt-to-equity ratio of 2.68, a quick ratio of 1.29 and a current ratio of 1.03.

Mastercard (NYSE:MA) last posted its quarterly earnings data on Thursday, January 30th. The credit services provider reported $3.82 EPS for the quarter, beating analysts’ consensus estimates of $3.71 by $0.11. Mastercard had a net margin of 45.71% and a return on equity of 188.47%. Equities analysts anticipate that Mastercard Incorporated will post 16.04 EPS for the current year.

Mastercard declared that its board has authorized a stock repurchase program on Tuesday, December 17th that permits the company to repurchase $12.00 billion in outstanding shares. This repurchase authorization permits the credit services provider to purchase up to 2.5% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Mastercard Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, February 7th. Shareholders of record on Thursday, January 9th will be given a $0.76 dividend. This is a positive change from Mastercard’s previous quarterly dividend of $0.66. The ex-dividend date of this dividend is Friday, January 10th. This represents a $3.04 annualized dividend and a yield of 0.54%. Mastercard’s payout ratio is 21.89%.

Analyst Ratings Changes

A number of equities research analysts have recently commented on the stock. Barclays lifted their price target on shares of Mastercard from $595.00 to $650.00 and gave the stock an “overweight” rating in a report on Monday. Susquehanna upped their target price on Mastercard from $605.00 to $670.00 and gave the company a “positive” rating in a research note on Friday, January 31st. Citigroup raised their price target on Mastercard from $584.00 to $650.00 and gave the stock a “buy” rating in a research note on Friday, January 31st. Raymond James reaffirmed an “outperform” rating and set a $640.00 price objective (up previously from $614.00) on shares of Mastercard in a research note on Friday, January 31st. Finally, Royal Bank of Canada boosted their target price on shares of Mastercard from $572.00 to $650.00 and gave the company an “outperform” rating in a report on Friday, January 31st. Four investment analysts have rated the stock with a hold rating, twenty-four have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, Mastercard presently has a consensus rating of “Moderate Buy” and an average price target of $603.08.

Mastercard Profile

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.