Mastercard (NYSE:MA) Stock Price Down 0.5% – Time to Sell?

Shares of Mastercard Incorporated (NYSE:MA) dropped 0.5% during mid-day trading on Monday . The company traded as low as $516.00 and last traded at $518.51. Approximately 907,051 shares changed hands during trading, a decline of 48% from the average daily volume of 1,751,365 shares. The stock had previously closed at $521.36.

Analyst Upgrades and Downgrades

MA has been the subject of a number of analyst reports. Mizuho lifted their price target on Mastercard from $496.00 to $532.00 and gave the company an “outperform” rating in a research note on Friday, November 1st. Morgan Stanley boosted their target price on Mastercard from $564.00 to $654.00 and gave the stock an “overweight” rating in a research note on Wednesday, December 18th. Barclays boosted their target price on Mastercard from $536.00 to $576.00 and gave the stock an “overweight” rating in a research note on Thursday, October 10th. Susquehanna boosted their target price on Mastercard from $540.00 to $605.00 and gave the stock a “positive” rating in a research note on Friday, November 1st. Finally, BMO Capital Markets boosted their target price on Mastercard from $550.00 to $565.00 and gave the stock an “outperform” rating in a research note on Thursday, November 14th. Three equities research analysts have rated the stock with a hold rating, twenty-three have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, Mastercard has a consensus rating of “Moderate Buy” and a consensus price target of $562.76.

Mastercard Stock Performance

The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 2.36. The business’s 50 day moving average is $523.58 and its 200 day moving average is $490.28. The stock has a market capitalization of $470.04 billion, a PE ratio of 38.74, a PEG ratio of 2.36 and a beta of 1.10.

Mastercard (NYSE:MA) last released its quarterly earnings results on Thursday, October 31st. The credit services provider reported $3.89 EPS for the quarter, topping analysts’ consensus estimates of $3.73 by $0.16. The firm had revenue of $7.37 billion during 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 revenue for the quarter was up 12.8% compared to the same quarter last year. During the same period in the previous year, the company earned $3.39 EPS. On average, equities research analysts predict that Mastercard Incorporated will post 14.47 earnings per share for the current fiscal year.

Mastercard Increases Dividend

The business also recently disclosed 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 represents a $3.04 annualized dividend and a yield of 0.59%. This is a boost from Mastercard’s previous quarterly dividend of $0.66. The ex-dividend date of this dividend is Friday, January 10th. Mastercard’s payout ratio is 23.00%.

Mastercard announced that its board has initiated a stock repurchase plan on Tuesday, December 17th that authorizes the company to repurchase $12.00 billion in shares. This repurchase authorization authorizes the credit services provider to repurchase up to 2.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Mastercard

Several large investors have recently added to or reduced their stakes in MA. Highline Wealth Partners LLC purchased a new stake in shares of Mastercard in the 3rd quarter worth approximately $25,000. Strategic Investment Solutions Inc. IL purchased a new stake in shares of Mastercard in the 2nd quarter worth approximately $34,000. Fairway Wealth LLC purchased a new stake in shares of Mastercard in the 2nd quarter worth approximately $35,000. First Personal Financial Services bought a new position in shares of Mastercard during the 3rd quarter worth approximately $39,000. Finally, Lowe Wealth Advisors LLC raised its stake in shares of Mastercard by 74.0% during the 3rd quarter. Lowe Wealth Advisors LLC now owns 87 shares of the credit services provider’s stock worth $43,000 after acquiring an additional 37 shares in the last quarter. 97.28% of the stock is owned by hedge funds and other institutional investors.

Mastercard Company 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.