Vetr Lowers Mastercard (MA) to Hold

Vetr downgraded shares of Mastercard (NYSE:MA) from a buy rating to a hold rating in a research report released on Monday. They currently have $158.61 target price on the credit services provider’s stock.

Several other research firms have also recently weighed in on MA. Instinet restated a buy rating and issued a $163.00 price objective (up previously from $153.00) on shares of Mastercard in a research report on Saturday, September 9th. KeyCorp restated a buy rating and issued a $165.00 price objective on shares of Mastercard in a research report on Wednesday, October 18th. BMO Capital Markets restated an outperform rating and issued a $174.00 price objective (up previously from $157.00) on shares of Mastercard in a research report on Wednesday, November 1st. Piper Jaffray Companies reiterated a buy rating and set a $161.00 target price on shares of Mastercard in a research report on Friday, October 13th. Finally, Susquehanna Bancshares reiterated a positive rating and set a $158.00 target price (up previously from $149.00) on shares of Mastercard in a research report on Friday, September 8th. Three investment 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 a consensus rating of Buy and an average price target of $159.59.

Mastercard (NYSE MA) opened at $151.45 on Monday. The company has a quick ratio of 1.66, a current ratio of 1.66 and a debt-to-equity ratio of 0.83. Mastercard has a 1 year low of $102.98 and a 1 year high of $154.65. The firm has a market cap of $160,580.00, a P/E ratio of 35.53, a P/E/G ratio of 2.04 and a beta of 1.21.

Mastercard (NYSE:MA) last posted its quarterly earnings data on Tuesday, October 31st. The credit services provider reported $1.34 earnings per share for the quarter, topping the consensus estimate 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 analysts’ expectations of $3.28 billion. During the same quarter in the previous year, the company posted $1.08 EPS. Mastercard’s revenue was up 18.1% on a year-over-year basis. analysts expect that Mastercard will post 4.54 earnings per share for the current fiscal year.

Mastercard declared that its Board of Directors has initiated a stock repurchase plan on Monday, December 4th that permits the company to repurchase $4.00 billion in shares. This repurchase authorization permits the credit services provider to buy shares of its stock through open market purchases. Shares repurchase plans are often a sign that the company’s leadership believes its shares are undervalued.

The company also recently declared a quarterly dividend, which will be paid on Friday, February 9th. Stockholders of record on Tuesday, January 9th will be issued a $0.25 dividend. This is a positive change from Mastercard’s previous quarterly dividend of $0.22. The ex-dividend date of this dividend is Monday, January 8th. This represents a $1.00 annualized dividend and a dividend yield of 0.66%. Mastercard’s payout ratio is 20.51%.

In other news, Director Richard Haythornthwaite sold 5,000 shares of the business’s stock in a transaction on Monday, October 2nd. The shares were sold at an average price of $142.51, for a total value of $712,550.00. Following the completion of the transaction, the director now owns 45,278 shares of the company’s stock, valued at approximately $6,452,567.78. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Michael Fraccaro sold 5,800 shares of the business’s stock in a transaction on Thursday, October 12th. The shares were sold at an average price of $147.59, for a total transaction of $856,022.00. The disclosure for this sale can be found here. 0.30% of the stock is owned by insiders.

A number of hedge funds and other institutional investors have recently made changes to their positions in MA. Janus Henderson Group PLC boosted its stake in Mastercard by 784.3% in the 2nd quarter. Janus Henderson Group PLC now owns 16,870,229 shares of the credit services provider’s stock worth $2,048,899,000 after purchasing an additional 14,962,583 shares during the period. Arrowstreet Capital Limited Partnership boosted its stake in Mastercard by 289.7% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 3,570,551 shares of the credit services provider’s stock worth $433,643,000 after purchasing an additional 2,654,308 shares during the period. Harding Loevner LP boosted its stake in Mastercard by 170.7% in the 3rd quarter. Harding Loevner LP now owns 3,447,079 shares of the credit services provider’s stock worth $194,599,000 after purchasing an additional 2,173,507 shares during the period. Vanguard Group Inc. boosted its stake in Mastercard by 2.9% in the 1st quarter. Vanguard Group Inc. now owns 63,807,040 shares of the credit services provider’s stock worth $7,176,378,000 after purchasing an additional 1,814,116 shares during the period. Finally, Capital Research Global Investors boosted its stake in Mastercard by 15.8% in the 2nd quarter. Capital Research Global Investors now owns 12,685,589 shares of the credit services provider’s stock worth $1,540,665,000 after purchasing an additional 1,729,179 shares during the period. 75.57% of the stock is owned by hedge funds and other institutional investors.

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About Mastercard

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.

To view Vetr’s full report, visit Vetr’s official website.

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