Zacks Investment Research cut shares of Mastercard (NYSE:MA) from a buy rating to a hold rating in a research note issued to investors on Friday morning.
According to Zacks, “Mastercard’s stock has outperformed the industry in a year's time. However, the stock have witnessed its 2018 and 2019 move upward over the past 30 days. The company is poised for growth, given its solid market position, ongoing expansion and digital initiatives plus significant opportunities from the secular shift toward electronic payments. Its numerous acquisitions have aided revenue growth. The company is gaining from increase in switched transactions, cross-border volume and gross dollar volume from higher spending. However, escalating costs will put pressure on the company’s bottom line. Also, the company has been incurring quite high levels of costs under rebates and incentives, which remains a concern.”
A number of other equities research analysts also recently issued reports on MA. Barclays assumed coverage on shares of Mastercard in a research report on Wednesday, November 14th. They set an overweight rating and a $240.00 price objective for the company. Loop Capital set a $232.00 price objective on shares of Mastercard and gave the company a buy rating in a research report on Wednesday, October 31st. BMO Capital Markets upped their target price on shares of Mastercard from $238.00 to $248.00 and gave the stock an outperform rating in a report on Thursday, November 1st. Royal Bank of Canada upped their target price on shares of Mastercard from $223.00 to $232.00 and gave the stock an outperform rating in a report on Tuesday, September 11th. They noted that the move was a valuation call. Finally, Wells Fargo & Co upped their target price on shares of Mastercard from $230.00 to $250.00 and gave the stock an outperform rating in a report on Monday, October 1st. Three analysts have rated the stock with a hold rating, twenty-six have given a buy rating and two have assigned a strong buy rating to the company. The stock has an average rating of Buy and an average target price of $220.55.
Mastercard (NYSE:MA) last issued its quarterly earnings data on Tuesday, October 30th. The credit services provider reported $1.78 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.68 by $0.10. Mastercard had a net margin of 35.88% and a return on equity of 114.58%. The firm had revenue of $3.90 billion during the quarter, compared to the consensus estimate of $3.86 billion. During the same quarter in the previous year, the firm posted $1.34 EPS. The company’s revenue for the quarter was up 14.7% compared to the same quarter last year. Sell-side analysts expect that Mastercard will post 6.43 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Friday, November 9th. Investors of record on Tuesday, October 9th were given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.48%. The ex-dividend date of this dividend was Friday, October 5th. Mastercard’s dividend payout ratio (DPR) is currently 21.83%.
In other news, Director Richard K. Davis acquired 2,475 shares of Mastercard stock in a transaction that occurred on Friday, November 2nd. The shares were bought at an average cost of $196.37 per share, with a total value of $486,015.75. Following the transaction, the director now directly owns 3,468 shares of the company’s stock, valued at approximately $681,011.16. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.32% of the company’s stock.
Several large investors have recently modified their holdings of the company. Capital Guardian Trust Co. bought a new position in shares of Mastercard during the third quarter valued at approximately $103,000. Baker Ellis Asset Management LLC bought a new position in shares of Mastercard during the third quarter valued at approximately $104,000. Bay Colony Advisory Group Inc d b a Bay Colony Advisors bought a new position in shares of Mastercard during the second quarter valued at approximately $109,000. Fort L.P. bought a new position in shares of Mastercard during the second quarter valued at approximately $120,000. Finally, Bogart Wealth LLC boosted its stake in shares of Mastercard by 434.7% during the third quarter. Bogart Wealth LLC now owns 663 shares of the credit services provider’s stock valued at $148,000 after purchasing an additional 539 shares in the last quarter. 74.84% of the stock is currently owned by institutional investors and hedge funds.
Mastercard Company Profile
Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. It facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers related products and services.
Further Reading: The risks of owning bonds
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Mastercard Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Mastercard and related companies with MarketBeat.com's FREE daily email newsletter.