Beacon Investment Advisory Services Inc. Sells 23,899 Shares of Mastercard Incorporated $MA

Key Points

• Beacon Investment Advisory Services cut its Mastercard stake by 21.9%, selling 23,899 shares and retaining 85,132 shares valued at approximately $43.7 million. Institutional investors and hedge funds collectively own 97.28% of the company.
• Mastercard exceeded quarterly expectations, reporting $5.04 in EPS and $9.28 billion in revenue, with revenue up 14.1% year over year. The company also pays a quarterly dividend of $0.87 per share, representing a 0.6% yield.
• Analysts remain broadly positive, assigning the stock an average “Buy” rating and a consensus price target of $661.93, although insider selling and Mastercard’s roughly 31-times earnings valuation remain potential investor concerns.

Beacon Investment Advisory Services Inc. trimmed its stake in shares of Mastercard Incorporated (NYSE:MA - Free Report) by 21.9% in the second quarter, according to the company in its most recent filing with the SEC. The firm owned 85,132 shares of the credit services provider's stock after selling 23,899 shares during the quarter. Mastercard comprises about 1.6% of Beacon Investment Advisory Services Inc.'s portfolio, making the stock its 19th biggest holding. Beacon Investment Advisory Services Inc.'s holdings in Mastercard were worth $43,724,000 as of its most recent filing with the SEC.

Other large investors also recently modified their holdings of the company. Robinswood Financial LLC acquired a new position in Mastercard in the first quarter valued at about $25,000. E Fund Management Hong Kong Co. Ltd. grew its stake in Mastercard by 820.0% during the fourth quarter. E Fund Management Hong Kong Co. Ltd. now owns 46 shares of the credit services provider's stock worth $26,000 after buying an additional 41 shares in the last quarter. Strive Financial Group LLC bought a new position in Mastercard in the 4th quarter valued at about $27,000. Hyposwiss Advisors SA acquired a new position in shares of Mastercard in the 4th quarter valued at approximately $29,000. Finally, First Pacific Financial lifted its holdings in shares of Mastercard by 113.8% during the 1st quarter. First Pacific Financial now owns 62 shares of the credit services provider's stock worth $31,000 after acquiring an additional 33 shares during the period. 97.28% of the stock is owned by institutional investors and hedge funds.

Mastercard Stock Performance

Shares of MA stock opened at $562.20 on Friday. The business's 50-day moving average price is $522.37 and its 200-day moving average price is $515.41. Mastercard Incorporated has a 12 month low of $464.52 and a 12 month high of $601.77. The firm has a market capitalization of $496.75 billion, a price-to-earnings ratio of 30.92, a PEG ratio of 1.73 and a beta of 0.72. 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 (NYSE:MA - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The credit services provider reported $5.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.77 by $0.27. The company had revenue of $9.28 billion during the quarter, compared to the consensus estimate of $9.08 billion. Mastercard had a return on equity of 239.99% and a net margin of 46.34%.The firm's revenue was up 14.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $4.15 earnings per share. Equities research analysts forecast that Mastercard Incorporated will post 19.81 EPS for the current year.

Mastercard Announces Dividend

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

Insider Activity at Mastercard

In other Mastercard news, insider Linda Pistecchia Kirkpatrick sold 4,280 shares of the company's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $570.31, for a total value of $2,440,926.80. Following the sale, the insider owned 31,179 shares in the company, valued at approximately $17,781,695.49. The trade was a 12.07% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Sandra A. Arkell sold 200 shares of the firm's stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $540.00, for a total value of $108,000.00. Following the transaction, the insider owned 3,322 shares of the company's stock, valued at $1,793,880. This trade represents a 5.68% 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. Insiders have sold 62,913 shares of company stock valued at $35,769,036 in the last quarter. Insiders own 0.09% of the company's stock.

Mastercard News Summary

Here are the key news stories impacting Mastercard this week:

• Positive Sentiment: Stablecoin initiatives create new growth opportunities: Mastercard is partnering with Borderless.xyz to test trusted cross-border stablecoin payment flows using Mastercard Crypto Credential. It is also a founding validator for Circle’s Arc blockchain, which is scheduled to launch on September 16. These efforts could produce future transaction-processing, compliance and infrastructure revenue. Mastercard and Borderless.xyz stablecoin partnership
• Positive Sentiment: Fiserv partnership expands Mastercard’s merchant reach: Connecting Mastercard Merchant Cloud with Fiserv Commerce Hub will give enterprise merchants broader access to payment services across online, mobile and in-store channels, potentially supporting transaction growth and value-added-services revenue. Mastercard expands merchant reach through Fiserv
• Positive Sentiment: Analysts remain bullish: Wall Street maintains a favorable view of MA, with recent target increases including Cantor Fitzgerald’s $695 target. The optimism follows Mastercard’s latest earnings beat: quarterly EPS was $5.04 versus $4.77 expected, while revenue rose 14.1% year over year to $9.28 billion. Wall Street outlook for Mastercard
• Neutral Sentiment: Mastercard’s corporate-card launches in the UAE and Egypt and expanded premium travel benefits in Asia may increase regional usage, although the immediate earnings contribution is likely limited. Mastercard regional card expansion
• Negative Sentiment: Several insiders sold shares: CEO Michael Miebach sold 15,372 shares for about $8.8 million, while J. Mehra Sachin sold 3,000 shares and Linda Pistecchia Kirkpatrick sold 4,280 shares. All trades were made under pre-arranged Rule 10b5-1 plans, which reduces their predictive value, but the cluster of sales can still pressure investor sentiment. Mastercard insider sale filings
• Negative Sentiment: Valuation and industry risks remain: With MA trading at roughly 31 times earnings, investors may be sensitive to slowing consumer spending, rising technology costs and regulatory scrutiny of payments and stablecoins.

Wall Street Analyst Weigh In

Several research firms recently issued reports on MA. Piper Sandler began coverage on shares of Mastercard in a research report on Monday, June 29th. They set an "overweight" rating and a $597.00 price target on the stock. Morgan Stanley upped their target price on Mastercard from $679.00 to $681.00 and gave the stock an "overweight" rating in a research note on Friday, July 31st. BMO Capital Markets assumed coverage on Mastercard in a report on Tuesday, April 21st. They issued an "outperform" rating and a $605.00 target price on the stock. Truist Financial lifted their price target on Mastercard from $554.00 to $633.00 and gave the company a "buy" rating in a research note on Wednesday. Finally, Wall Street Zen cut Mastercard from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Five research analysts have rated the stock with a Strong Buy rating, twenty-four have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Mastercard currently has an average rating of "Buy" and an average price target of $661.93.

About Mastercard

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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