25,580 Shares in Mastercard Incorporated $MA Purchased by Somerville Kurt F

Key Points

• Somerville Kurt F purchased 25,580 Mastercard shares worth approximately $13.1 million, making Mastercard a 3.1% portfolio holding and its 10th-largest position. Institutional investors collectively own 97.28% of the company.
• Mastercard reported quarterly revenue of $9.28 billion and earnings of $5.04 per share, exceeding analyst expectations; revenue increased 14.1% year over year. The company also pays a quarterly dividend of $0.87 per share, yielding about 0.6%.
• Analysts maintain a broadly positive outlook, with a consensus “Buy” rating and an average price target of $664.71 versus the reported share price of $598.69. Recent insider transactions, however, included $40.6 million in stock sales over 90 days, mostly under pre-arranged trading plans.

Somerville Kurt F bought a new stake in Mastercard Incorporated (NYSE:MA - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 25,580 shares of the credit services provider's stock, valued at approximately $13,138,000. Mastercard comprises approximately 3.1% of Somerville Kurt F's investment portfolio, making the stock its 10th biggest position.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. J. Stern & Co. LLP boosted its holdings in shares of Mastercard by 53,535.0% in the 4th quarter. J. Stern & Co. LLP now owns 72,597,097 shares of the credit services provider's stock valued at $41,444,231,000 after purchasing an additional 72,461,743 shares during the last quarter. Norges Bank acquired a new position in Mastercard in the fourth quarter valued at $6,705,708,000. Cardano Risk Management B.V. boosted its holdings in Mastercard by 861.6% in the fourth quarter. Cardano Risk Management B.V. now owns 4,072,210 shares of the credit services provider's stock valued at $2,324,743,000 after acquiring an additional 3,648,748 shares during the last quarter. State Street Corp increased its stake in Mastercard by 2.8% during the third quarter. State Street Corp now owns 36,580,374 shares of the credit services provider's stock worth $20,807,283,000 after acquiring an additional 997,536 shares during the last quarter. Finally, Cibc World Markets Corp acquired a new stake in Mastercard during the fourth quarter worth about $497,311,000. 97.28% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Mastercard news, insider J. Mehra Sachin sold 7,444 shares of the company's stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $577.13, for a total value of $4,296,155.72. Following the transaction, the insider directly owned 40,916 shares of the company's stock, valued at $23,613,851.08. This represents a 15.39% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Linda Pistecchia Kirkpatrick sold 4,280 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $570.31, for a total value of $2,440,926.80. Following the transaction, the insider owned 31,179 shares of the company's stock, valued at approximately $17,781,695.49. This trade represents a 12.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 71,357 shares of company stock valued at $40,637,262. Insiders own 0.09% of the company's stock.

Mastercard Trading Down 0.2%

NYSE MA opened at $598.69 on Wednesday. The stock has a market cap of $524.46 billion, a P/E ratio of 32.93, a PEG ratio of 1.80 and a beta of 0.72. The company's fifty day simple moving average is $542.94 and its 200-day simple moving average is $518.46. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 3.96. Mastercard Incorporated has a 52 week low of $464.52 and a 52 week high of $601.62.

Mastercard (NYSE:MA - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The credit services provider reported $5.04 earnings per share for the quarter, beating analysts' consensus estimates of $4.77 by $0.27. Mastercard had a net margin of 46.34% and a return on equity of 239.99%. The business had revenue of $9.28 billion during the quarter, compared to analyst estimates of $9.08 billion. During the same period last year, the business earned $4.15 EPS. The business's revenue was up 14.1% on a year-over-year basis. Equities research analysts predict that Mastercard Incorporated will post 19.86 EPS for the current fiscal year.

Mastercard Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Thursday, July 9th were given a dividend of $0.87 per share. This represents a $3.48 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend was Thursday, July 9th. Mastercard's payout ratio is presently 19.14%.

Analysts Set New Price Targets

MA has been the subject of a number of research analyst reports. Robert W. Baird increased their target price on shares of Mastercard from $660.00 to $680.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 7th. Raymond James Financial reissued an "outperform" rating and issued a $632.00 target price on shares of Mastercard in a research note on Friday, July 31st. UBS Group lifted their target price on shares of Mastercard from $640.00 to $670.00 and gave the company a "buy" rating in a report on Friday, July 31st. Susquehanna decreased their price target on shares of Mastercard from $670.00 to $665.00 and set a "positive" rating for the company in a research report on Friday, May 1st. Finally, Wolfe Research increased their price target on Mastercard from $680.00 to $740.00 and gave the company an "outperform" rating in a report on Tuesday. Five equities research analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, Mastercard currently has a consensus rating of "Buy" and an average target price of $664.71.

Mastercard Profile

Mastercard Incorporated is a global payments technology company that operates a network connecting consumers, financial institutions, merchants, governments and businesses in more than 200 countries and territories. The company facilitates electronic payments and transaction processing for credit, debit and prepaid card products carrying the Mastercard brand, while also providing a range of payment-related services to issuers, acquirers and merchants. Its technology and network enable authorization, clearing and settlement of payments and support a broad set of use cases including point-of-sale, e-commerce and mobile payments.

Beyond core transaction processing, Mastercard offers a suite of value-added services such as fraud and risk management, identity and authentication tools, tokenization and digital wallet support, cross-border and commercial payment solutions, and data analytics and consulting services for merchants and financial partners.

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