Arrow Capital Management LLC Makes New Investment in Mastercard Incorporated $MA

Key Points

• Arrow Capital Management opened a new position in Mastercard in the fourth quarter, buying 17,584 shares worth about $10.0 million. Mastercard now ranks as the firm’s 7th-largest holding and makes up roughly 5.8% of its portfolio.
• Mastercard continues to draw strong interest from large institutional investors, with firms like Vanguard, J. Stern & Co., and State Street all increasing their stakes. In total, 97.28% of the stock is owned by institutions and hedge funds.
• The company reported better-than-expected quarterly results, with EPS of $4.60 and revenue of $8.40 billion, while also announcing a quarterly dividend of $0.87 per share. Analyst sentiment remains positive overall, with a consensus rating of Buy and a target price around $656.

Arrow Capital Management LLC purchased a new stake in shares of Mastercard Incorporated (NYSE:MA - Free Report) in the fourth quarter, according to its most recent disclosure with the SEC. The firm purchased 17,584 shares of the credit services provider's stock, valued at approximately $10,038,000. Mastercard makes up approximately 5.8% of Arrow Capital Management LLC's investment portfolio, making the stock its 7th biggest position.

Several other hedge funds also recently modified their holdings of MA. Vanguard Group Inc. raised its holdings in Mastercard by 0.6% during the 4th quarter. Vanguard Group Inc. now owns 79,897,854 shares of the credit services provider's stock worth $45,612,087,000 after buying an additional 466,514 shares during the period. J. Stern & Co. LLP grew its position in Mastercard by 53,535.0% during the 4th quarter. J. Stern & Co. LLP now owns 72,597,097 shares of the credit services provider's stock worth $41,444,231,000 after purchasing an additional 72,461,743 shares in the last quarter. State Street Corp raised its stake in Mastercard by 2.8% during the 3rd quarter. State Street Corp now owns 36,580,374 shares of the credit services provider's stock valued at $20,807,283,000 after purchasing an additional 997,536 shares during the period. Geode Capital Management LLC raised its stake in Mastercard by 1.7% during the 4th quarter. Geode Capital Management LLC now owns 20,686,605 shares of the credit services provider's stock valued at $11,773,153,000 after purchasing an additional 349,369 shares during the period. Finally, Capital International Investors lifted its holdings in shares of Mastercard by 4.4% in the fourth quarter. Capital International Investors now owns 17,964,658 shares of the credit services provider's stock valued at $10,256,368,000 after purchasing an additional 759,584 shares in the last quarter. 97.28% of the stock is currently owned by institutional investors and hedge funds.

Mastercard News Roundup

Here are the key news stories impacting Mastercard this week:

• Positive Sentiment: Mastercard is pushing deeper into AI-driven “agentic commerce” with its new Agent Pay and related partnerships, which could help it capture more of the next wave of digital payments as AI agents begin shopping and paying on behalf of consumers. Article Title
• Positive Sentiment: Mastercard expanded its cross-border payments footprint through partnerships involving PaidBy and the Appia Foundation, reinforcing its international network and transaction growth opportunities. Article Title
• Positive Sentiment: Zacks highlighted Mastercard’s network-focused model, faster growth profile, and estimated upside versus American Express, suggesting the stock may still have room to rerate as digital payments expand. Article Title
• Positive Sentiment: Mastercard announced a quarterly dividend, which can appeal to income-focused investors and signals continued cash generation and shareholder returns.
• Neutral Sentiment: Mastercard executives said consumers are still navigating the current economy reasonably well, which supports the view that spending trends remain stable but does not directly change the company’s outlook. Article Title
• Neutral Sentiment: Commentary on Mastercard’s former CMO and broader AI-driven marketing trends is more about the company’s thought leadership than a direct financial catalyst. Article Title
• Neutral Sentiment: Coverage comparing Mastercard with Remitly Global and a note about Mastercard being a top-ranked momentum stock are generally supportive, but they are more market commentary than new fundamentals. Article Title Article Title
• Negative Sentiment: News that Russia is working on a plan to remove Visa and Mastercard highlights geopolitical and regulatory risk that could weigh on long-term international payment volumes. Article Title

Analyst Ratings Changes

Several brokerages have recently commented on MA. Loop Capital reaffirmed a "buy" rating and issued a $631.00 target price on shares of Mastercard in a research report on Wednesday, June 3rd. Tigress Financial upped their price target on Mastercard from $730.00 to $735.00 and gave the company a "strong-buy" rating in a research report on Friday, March 13th. Royal Bank Of Canada reduced their price objective on Mastercard from $656.00 to $629.00 and set an "outperform" rating for the company in a research note on Friday, May 1st. Truist Financial decreased their price objective on Mastercard from $590.00 to $561.00 and set a "buy" rating for the company in a research report on Tuesday, May 12th. Finally, Wolfe Research reaffirmed an "outperform" rating on shares of Mastercard in a research note on Tuesday, March 17th. Six analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Buy" and a consensus target price of $656.04.

Mastercard Trading Down 0.5%

NYSE:MA opened at $490.73 on Friday. The stock's 50 day moving average price is $499.08 and its 200 day moving average price is $521.98. Mastercard Incorporated has a 52 week low of $464.52 and a 52 week high of $601.77. The company has a market capitalization of $433.60 billion, a P/E ratio of 28.40, a P/E/G ratio of 1.54 and a beta of 0.74. The company has a debt-to-equity ratio of 2.56, a quick ratio of 0.98 and a current ratio of 0.98.

Mastercard (NYSE:MA - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The credit services provider reported $4.60 earnings per share for the quarter, beating the consensus estimate of $4.41 by $0.19. The firm had revenue of $8.40 billion for the quarter, compared to analyst estimates of $8.26 billion. Mastercard had a net margin of 45.88% and a return on equity of 212.96%. The company's revenue for the quarter was up 15.8% on a year-over-year basis. During the same quarter last year, the firm earned $3.73 earnings per share. On average, research analysts forecast that Mastercard Incorporated will post 19.6 EPS for the current fiscal year.

Mastercard Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 7th. Stockholders of record on Thursday, July 9th will be issued a dividend of $0.87 per share. The ex-dividend date is Thursday, July 9th. This represents a $3.48 dividend on an annualized basis and a dividend yield of 0.7%. Mastercard's dividend payout ratio (DPR) is currently 20.14%.

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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