611,592 Mastercard Incorporated $MA Shares Acquired by Sanders Capital LLC

Key Points

• Sanders Capital increased its Mastercard stake by 26.2% in the third quarter, adding 611,592 shares to hold nearly 2.94 million shares worth about $1.62 billion. Institutional investors collectively own 97.28% of the company.
• Mastercard’s quarterly results beat expectations: revenue rose 14% year over year to $9.81 billion, and earnings were $5.31 per share versus the $5.17 consensus estimate.
• Analysts’ consensus rating is “Moderate Buy,” with an average price target of $704.62, but valuation and rising incentives are cited as risks; the company also faces UK claims related to card fees.

Sanders Capital LLC raised its holdings in shares of Mastercard Incorporated (NYSE:MA - Free Report) by 26.2% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 2,941,951 shares of the credit services provider's stock after purchasing an additional 611,592 shares during the quarter. Mastercard accounts for approximately 1.6% of Sanders Capital LLC's portfolio, making the stock its 21st largest position. Sanders Capital LLC owned about 0.34% of Mastercard worth $1,622,398,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also bought and sold shares of MA. Liberty Capital Management Inc. grew its holdings in Mastercard by 18.4% during the third quarter. Liberty Capital Management Inc. now owns 5,766 shares of the credit services provider's stock worth $3,180,000 after buying an additional 898 shares in the last quarter. Alta Advisers Ltd lifted its stake in Mastercard by 77.1% during the 3rd quarter. Alta Advisers Ltd now owns 5,749 shares of the credit services provider's stock valued at $3,170,000 after acquiring an additional 2,502 shares in the last quarter. Ullmann Wealth Partners Group LLC boosted its holdings in Mastercard by 7.1% during the 3rd quarter. Ullmann Wealth Partners Group LLC now owns 1,013 shares of the credit services provider's stock worth $559,000 after acquiring an additional 67 shares during the last quarter. Principle Wealth Partners LLC boosted its holdings in Mastercard by 3.0% during the 3rd quarter. Principle Wealth Partners LLC now owns 5,973 shares of the credit services provider's stock worth $3,294,000 after acquiring an additional 173 shares during the last quarter. Finally, Kestra Advisory Services LLC grew its stake in shares of Mastercard by 9.6% in the 3rd quarter. Kestra Advisory Services LLC now owns 92,673 shares of the credit services provider's stock worth $51,107,000 after acquiring an additional 8,150 shares in the last quarter. Institutional investors own 97.28% of the company's stock.

Mastercard Stock Performance

Shares of Mastercard stock traded down $2.47 during trading hours on Friday, hitting $653.45. 3,293,628 shares of the company's stock traded hands, compared to its average volume of 3,281,489. The stock has a market capitalization of $572.43 billion, a price-to-earnings ratio of 34.18, a PEG ratio of 1.86 and a beta of 0.78. Mastercard Incorporated has a 12-month low of $464.52 and a 12-month high of $681.99. The company has a debt-to-equity ratio of 3.29, a current ratio of 1.01 and a quick ratio of 1.01. The company has a fifty day simple moving average of $593.15 and a 200-day simple moving average of $539.12.

Mastercard (NYSE:MA - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The credit services provider reported $5.31 earnings per share for the quarter, topping analysts' consensus estimates of $5.17 by $0.14. Mastercard had a net margin of 46.73% and a return on equity of 260.86%. The company had revenue of $9.81 billion for the quarter, compared to the consensus estimate of $9.66 billion. During the same period in the previous year, the firm earned $4.38 EPS. The firm's quarterly revenue was up 14.0% on a year-over-year basis. Equities research analysts anticipate that Mastercard Incorporated will post 20.00 EPS for the current fiscal year.

Mastercard Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, November 9th. Shareholders of record on Friday, October 9th will be paid a $0.87 dividend. This represents a $3.48 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date is Friday, October 9th. Mastercard's payout ratio is presently 18.20%.

Key Headlines Impacting Mastercard

Here are the key news stories impacting Mastercard this week:

• Positive Sentiment: Q3 results beat expectations: revenue rose 14% year over year to $9.81 billion and adjusted EPS increased 21.2%. Services revenue grew 19%, although higher incentives were flagged as a concern. Mastercard's 19% Services Growth Steals the Q3 Show: Buy or Hold MA?
• Positive Sentiment: Truist raised its price target to $735 and maintained a Buy rating, signaling potential upside in its view. Truist Financial rating information
• Negative Sentiment: Freedom Broker downgraded MA from Buy to Hold, despite lifting its target to $725. The mixed call may temper enthusiasm after the stock’s recent rally. Freedom Broker rating information
• Negative Sentiment: Valuation is a key risk: coverage notes the recent rally has outpaced changes in earnings estimates, leaving less room for disappointment. Rising incentives could also weigh on margins. Mastercard Stock Rose 22% in a Month. Here’s What Its Price Now Assumes
• Negative Sentiment: Visa and Mastercard face additional collective claims in the UK over card fees, adding potential legal and financial uncertainty. Visa and Mastercard face additional £5bn collective claims over card fees
• Neutral Sentiment: The CFO sold about $2.77 million of MA shares. The sale may attract attention, but the report provides no context on its purpose. Mastercard CFO stock sale

Insider Activity

In other news, insider Sachin Mehra sold 7,444 shares of the stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $577.13, for a total transaction of $4,296,155.72. Following the completion of 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Julius Genachowski sold 371 shares of the firm's stock in a transaction that occurred on Friday, October 9th. The stock was sold at an average price of $585.01, for a total transaction of $217,038.71. Following the sale, the director owned 8,607 shares of the company's stock, valued at approximately $5,035,181.07. The trade was a 4.13% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 25,403 shares of company stock valued at $15,428,736 in the last three months. Company insiders own 0.09% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on MA shares. President Capital increased their target price on shares of Mastercard from $693.00 to $729.00 and gave the company a "buy" rating in a report on Monday, August 17th. Susquehanna boosted their price target on shares of Mastercard from $665.00 to $740.00 and gave the stock a "positive" rating in a report on Friday, October 30th. Raymond James Financial reaffirmed an "outperform" rating and issued a $632.00 price objective (up from $609.00) on shares of Mastercard in a research report on Friday, July 31st. Royal Bank Of Canada increased their price objective on shares of Mastercard from $696.00 to $742.00 and gave the company an "outperform" rating in a research note on Friday, October 30th. Finally, The Goldman Sachs Group reissued a "buy" rating and set a $701.00 target price (up from $674.00) on shares of Mastercard in a research report on Thursday, July 30th. Two investment analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $704.62.

About Mastercard

Mastercard Incorporated is a global payments technology company that operates a network connecting consumers, merchants, financial institutions, businesses and governments. Its network supports electronic payments, including transactions made with Mastercard-branded credit, debit and prepaid cards, as well as digital payment methods.

The company provides technology for authorizing, clearing and settling transactions. It also offers services related to cybersecurity, identity verification, data analytics, fraud prevention and payment consulting.

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