Barclays Reaffirms “Buy” Rating for Mastercard (MA)

Barclays reissued their buy rating on shares of Mastercard (NYSE:MA) in a research report released on Friday, January 5th. Barclays currently has a $170.00 target price on the credit services provider’s stock.

A number of other research firms have also weighed in on MA. Royal Bank of Canada lowered shares of Mastercard from a top pick rating to an outperform rating and set a $130.00 target price for the company. in a report on Thursday, January 4th. Mizuho raised shares of Mastercard from a neutral rating to a buy rating in a report on Thursday, January 4th. Vetr lowered shares of Mastercard from a buy rating to a hold rating and set a $158.61 target price for the company. in a report on Monday, December 18th. Zacks Investment Research lowered shares of Mastercard from a buy rating to a hold rating in a research note on Wednesday, January 3rd. Finally, Sanford C. Bernstein reaffirmed a buy rating and set a $180.00 price objective (up from $166.00) on shares of Mastercard in a research note on Monday, December 11th. Three equities research analysts have rated the stock with a hold rating and twenty-eight have issued a buy rating to the company’s stock. The stock presently has an average rating of Buy and an average target price of $160.69.

Shares of Mastercard (NYSE MA) opened at $160.92 on Friday. The stock has a market cap of $170,360.00, a P/E ratio of 37.51, a PEG ratio of 1.80 and a beta of 1.21. The company has a current ratio of 1.66, a quick ratio of 1.66 and a debt-to-equity ratio of 0.83. Mastercard has a 1 year low of $104.01 and a 1 year high of $161.13.

Mastercard (NYSE:MA) last posted its earnings results on Tuesday, October 31st. The credit services provider reported $1.34 earnings per share for the quarter, beating analysts’ consensus estimates of $1.23 by $0.11. Mastercard had a net margin of 38.70% and a return on equity of 78.38%. The firm had revenue of $3.40 billion during the quarter, compared to analyst estimates of $3.28 billion. During the same period last year, the firm posted $1.08 earnings per share. Mastercard’s revenue for the quarter was up 18.1% compared to the same quarter last year. sell-side analysts expect that Mastercard will post 4.54 EPS for the current year.

The business also recently announced a quarterly dividend, which will be paid on Friday, February 9th. Stockholders of record on Tuesday, January 9th will be paid a dividend of $0.25 per share. This is a positive change from Mastercard’s previous quarterly dividend of $0.22. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.62%. The ex-dividend date of this dividend is Monday, January 8th. Mastercard’s payout ratio is currently 23.31%.

Mastercard announced that its Board of Directors has initiated a share buyback plan on Monday, December 4th that authorizes the company to buyback $4.00 billion in shares. This buyback authorization authorizes the credit services provider to purchase shares of its stock through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its shares are undervalued.

In other news, insider Edward Grunde Mclaughlin sold 17,167 shares of the business’s stock in a transaction on Tuesday, January 2nd. The shares were sold at an average price of $151.81, for a total transaction of $2,606,122.27. Following the completion of the sale, the insider now directly owns 47,901 shares of the company’s stock, valued at $7,271,850.81. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.30% of the stock is currently owned by insiders.

Several institutional investors and hedge funds have recently modified their holdings of the company. Milestone Resources Group Ltd bought a new stake in shares of Mastercard in the fourth quarter valued at about $59,916,000. Leavell Investment Management Inc. raised its holdings in shares of Mastercard by 9.8% in the fourth quarter. Leavell Investment Management Inc. now owns 11,250 shares of the credit services provider’s stock valued at $1,703,000 after acquiring an additional 1,000 shares in the last quarter. Crow Point Partners LLC raised its holdings in shares of Mastercard by 19.0% in the fourth quarter. Crow Point Partners LLC now owns 96,009 shares of the credit services provider’s stock valued at $14,571,000 after acquiring an additional 15,300 shares in the last quarter. Chesley Taft & Associates LLC raised its holdings in shares of Mastercard by 0.5% in the fourth quarter. Chesley Taft & Associates LLC now owns 65,960 shares of the credit services provider’s stock valued at $9,984,000 after acquiring an additional 325 shares in the last quarter. Finally, DnB Asset Management AS raised its holdings in shares of Mastercard by 1.7% in the fourth quarter. DnB Asset Management AS now owns 100,194 shares of the credit services provider’s stock valued at $15,165,000 after acquiring an additional 1,695 shares in the last quarter. 75.58% of the stock is owned by hedge funds and other institutional investors.

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Mastercard Company Profile

MasterCard Incorporated is a technology company that connects consumers, financial institutions, merchants, governments and businesses across the world, enabling them to use electronic forms of payment. The Company operates through Payment Solutions segment. The Company allows user to make payments by creating a range of payment solutions and services using its brands, which include MasterCard, Maestro and Cirrus.

Analyst Recommendations for Mastercard (NYSE:MA)

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