Transform Wealth LLC Grows Position in Mastercard Incorporated (NYSE:MA)

Transform Wealth LLC raised its stake in shares of Mastercard Incorporated (NYSE:MA) by 4.1% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 15,694 shares of the credit services provider’s stock after purchasing an additional 611 shares during the quarter. Transform Wealth LLC’s holdings in Mastercard were worth $8,264,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Highline Wealth Partners LLC acquired a new stake in Mastercard during the 3rd quarter valued at approximately $25,000. Strategic Investment Solutions Inc. IL purchased a new position in shares of Mastercard during the second quarter worth $34,000. First Personal Financial Services acquired a new position in Mastercard during the third quarter valued at $39,000. Lowe Wealth Advisors LLC boosted its holdings in Mastercard by 74.0% in the third quarter. Lowe Wealth Advisors LLC now owns 87 shares of the credit services provider’s stock valued at $43,000 after purchasing an additional 37 shares during the last quarter. Finally, FSA Wealth Management LLC acquired a new stake in Mastercard during the 3rd quarter worth about $54,000. Hedge funds and other institutional investors own 97.28% of the company’s stock.

Mastercard Stock Up 0.6 %

Shares of NYSE MA opened at $527.84 on Wednesday. The stock has a market cap of $484.47 billion, a PE ratio of 39.93, a P/E/G ratio of 2.09 and a beta of 1.10. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 2.36. Mastercard Incorporated has a 12-month low of $428.86 and a 12-month high of $537.70. The company has a 50-day moving average of $524.19 and a 200 day moving average of $495.46.

Mastercard (NYSE:MA) last posted its quarterly earnings results on Thursday, October 31st. The credit services provider reported $3.89 EPS for the quarter, beating the consensus estimate of $3.73 by $0.16. Mastercard had a return on equity of 178.27% and a net margin of 45.26%. The firm had revenue of $7.37 billion during the quarter, compared to analysts’ expectations of $7.27 billion. During the same quarter last year, the firm earned $3.39 earnings per share. The business’s revenue for the quarter was up 12.8% on a year-over-year basis. As a group, sell-side analysts predict that Mastercard Incorporated will post 14.47 EPS for the current fiscal year.

Mastercard announced that its board has initiated a stock buyback program on Tuesday, December 17th that permits the company to buyback $12.00 billion in shares. This buyback authorization permits the credit services provider to purchase up to 2.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its shares are undervalued.

Mastercard Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, February 7th. Stockholders of record on Thursday, January 9th will be issued a dividend of $0.76 per share. This represents a $3.04 annualized dividend and a dividend yield of 0.58%. The ex-dividend date is Friday, January 10th. This is a positive change from Mastercard’s previous quarterly dividend of $0.66. Mastercard’s payout ratio is currently 23.00%.

Wall Street Analyst Weigh In

A number of analysts have recently commented on MA shares. Oppenheimer lowered their target price on Mastercard from $591.00 to $588.00 and set an “outperform” rating on the stock in a research note on Thursday, December 19th. TD Cowen raised their price objective on shares of Mastercard from $533.00 to $567.00 and gave the stock a “buy” rating in a research note on Friday, November 15th. Mizuho lifted their target price on shares of Mastercard from $496.00 to $532.00 and gave the company an “outperform” rating in a report on Friday, November 1st. Susquehanna increased their price target on shares of Mastercard from $540.00 to $605.00 and gave the stock a “positive” rating in a report on Friday, November 1st. Finally, KeyCorp lifted their price objective on shares of Mastercard from $515.00 to $580.00 and gave the company an “overweight” rating in a report on Friday, November 1st. Four research analysts have rated the stock with a hold rating, twenty-two have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, Mastercard currently has a consensus rating of “Moderate Buy” and a consensus price target of $566.63.

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.