Bank of Nova Scotia Trims Holdings in Mastercard Incorporated (NYSE:MA)

Bank of Nova Scotia lessened its stake in Mastercard Incorporated (NYSE:MA) by 28.6% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 179,510 shares of the credit services provider’s stock after selling 71,737 shares during the period. Bank of Nova Scotia’s holdings in Mastercard were worth $94,567,000 at the end of the most recent reporting period.

Several other institutional investors have also recently added to or reduced their stakes in MA. NewSquare Capital LLC bought a new stake in shares of Mastercard in the 4th quarter worth about $26,000. Marshall Investment Management LLC acquired a new stake in Mastercard during the fourth quarter valued at approximately $30,000. Halbert Hargrove Global Advisors LLC acquired a new stake in Mastercard during the fourth quarter valued at approximately $32,000. Truvestments Capital LLC lifted its holdings in Mastercard by 62.5% during the 4th quarter. Truvestments Capital LLC now owns 65 shares of the credit services provider’s stock worth $34,000 after buying an additional 25 shares during the last quarter. Finally, CoreFirst Bank & Trust acquired a new position in shares of Mastercard in the 4th quarter worth approximately $37,000. 97.28% of the stock is owned by institutional investors and hedge funds.

Mastercard Stock Performance

Shares of MA opened at $485.24 on Tuesday. Mastercard Incorporated has a one year low of $428.86 and a one year high of $582.23. The company has a 50-day moving average of $549.68 and a two-hundred day moving average of $528.45. The company has a debt-to-equity ratio of 2.68, a current ratio of 1.03 and a quick ratio of 1.03. The stock has a market cap of $442.39 billion, a price-to-earnings ratio of 34.93, a PEG ratio of 2.37 and a beta of 1.06.

Mastercard (NYSE:MA) last announced its earnings results on Thursday, January 30th. The credit services provider reported $3.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.71 by $0.11. Mastercard had a net margin of 45.71% and a return on equity of 188.47%. On average, equities research analysts expect that Mastercard Incorporated will post 15.91 earnings per share for the current year.

Mastercard declared that its Board of Directors has approved a share buyback plan on Tuesday, December 17th that authorizes the company to buyback $12.00 billion in outstanding shares. This buyback authorization authorizes the credit services provider to buy up to 2.5% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board believes its stock is undervalued.

Mastercard Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 9th. Shareholders of record on Wednesday, April 9th will be paid a dividend of $0.76 per share. The ex-dividend date of this dividend is Wednesday, April 9th. This represents a $3.04 annualized dividend and a yield of 0.63%. Mastercard’s dividend payout ratio (DPR) is presently 21.89%.

Insider Activity

In other Mastercard news, CEO Michael Miebach sold 15,775 shares of the business’s stock in a transaction that occurred on Wednesday, March 26th. The shares were sold at an average price of $550.16, for a total value of $8,678,774.00. Following the completion of the sale, the chief executive officer now directly owns 84,871 shares of the company’s stock, valued at $46,692,629.36. The trade was a 15.67 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Edward Grunde Mclaughlin sold 7,132 shares of the firm’s stock in a transaction on Wednesday, March 19th. The shares were sold at an average price of $534.68, for a total transaction of $3,813,337.76. Following the transaction, the insider now owns 34,524 shares in the company, valued at $18,459,292.32. This represents a 17.12 % decrease in their position. The disclosure for this sale can be found here. 0.10% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on MA. DZ Bank upgraded Mastercard from a “hold” rating to a “buy” rating and set a $620.00 price objective on the stock in a research note on Tuesday, February 4th. Susquehanna raised their price target on shares of Mastercard from $605.00 to $670.00 and gave the stock a “positive” rating in a research report on Friday, January 31st. Barclays boosted their price objective on shares of Mastercard from $595.00 to $650.00 and gave the company an “overweight” rating in a research report on Monday, February 3rd. Seaport Res Ptn lowered Mastercard from a “strong-buy” rating to a “hold” rating in a report on Tuesday, January 14th. Finally, Macquarie raised their price target on Mastercard from $565.00 to $645.00 and gave the stock an “outperform” rating in a report on Friday, January 31st. Four investment analysts have rated the stock with a hold rating, twenty-five have assigned a buy rating and two have issued a strong buy rating to the company. According to MarketBeat, Mastercard has an average rating of “Moderate Buy” and a consensus price target of $607.07.

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.