Bornite Capital Management LP Buys New Shares in Mastercard Incorporated $MA

Key Points

• Bornite Capital Management initiated a 75,000-share Mastercard position worth approximately $38.5 million, making it 4.8% of the fund’s portfolio. Institutional investors collectively own 97.28% of Mastercard’s shares.
• Mastercard reported quarterly adjusted earnings of $5.04 per share and revenue of $9.28 billion, exceeding estimates, while revenue increased 14.1% year over year. The company also maintains a quarterly dividend of $0.87 per share, yielding about 0.6%.
• Analysts remain broadly bullish, with a consensus “Buy” rating and an average price target of $666.64 versus the reported share price of $580.95. Meanwhile, insiders sold shares under pre-arranged trading plans, including CEO Michael Miebach’s sale of 15,372 shares.

Bornite Capital Management LP purchased a new position in Mastercard Incorporated (NYSE:MA - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 75,000 shares of the credit services provider's stock, valued at approximately $38,520,000. Mastercard comprises about 4.8% of Bornite Capital Management LP's investment portfolio, making the stock its 11th largest position.

Other institutional investors have also added to or reduced their stakes in the company. Brighton Jones LLC increased its holdings in shares of Mastercard by 42.3% in the fourth quarter. Brighton Jones LLC now owns 6,824 shares of the credit services provider's stock worth $3,594,000 after buying an additional 2,028 shares during the period. Schnieders Capital Management LLC. boosted its holdings in Mastercard by 8.5% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,548 shares of the credit services provider's stock valued at $1,432,000 after acquiring an additional 200 shares during the period. Betterment LLC boosted its holdings in Mastercard by 6.5% during the 2nd quarter. Betterment LLC now owns 947 shares of the credit services provider's stock valued at $532,000 after acquiring an additional 58 shares during the period. Worldquant Millennium Advisors LLC grew its position in Mastercard by 35.8% during the 2nd quarter. Worldquant Millennium Advisors LLC now owns 677,204 shares of the credit services provider's stock worth $380,548,000 after acquiring an additional 178,387 shares during the last quarter. Finally, Darwin Wealth Management LLC purchased a new position in Mastercard in the 2nd quarter worth approximately $431,000. 97.28% of the stock is currently owned by hedge funds and other institutional investors.

Mastercard Trading Down 1.4%

MA opened at $580.95 on Wednesday. The stock has a market cap of $508.92 billion, a PE ratio of 31.96, a PEG ratio of 1.77 and a beta of 0.74. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 3.96. The business has a 50 day moving average of $553.09 and a 200-day moving average of $520.16. 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 issued its quarterly earnings results on Thursday, July 30th. The credit services provider reported $5.04 earnings per share for the quarter, topping the consensus estimate of $4.77 by $0.27. The company had revenue of $9.28 billion for the quarter, compared to analysts' expectations of $9.08 billion. Mastercard had a return on equity of 239.99% and a net margin of 46.34%.The firm's revenue for the quarter was up 14.1% on a year-over-year basis. During the same period in the prior year, the firm earned $4.15 earnings per share. Equities research analysts predict that Mastercard Incorporated will post 19.86 earnings per share for the current fiscal year.

Mastercard Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Thursday, July 9th were issued 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 was Thursday, July 9th. Mastercard's payout ratio is 19.14%.

Insider Transactions at Mastercard

In related news, insider Linda Pistecchia Kirkpatrick sold 4,280 shares of the stock in a transaction dated 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 completion of the transaction, the insider directly owned 31,179 shares in the company, valued at $17,781,695.49. This trade represents a 12.07% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael Miebach sold 15,372 shares of Mastercard stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $575.00, for a total transaction of $8,838,900.00. Following the transaction, the chief executive officer directly owned 93,693 shares of the company's stock, valued at approximately $53,873,475. This trade represents a 14.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 71,357 shares of company stock worth $40,637,262. 0.09% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on MA. TD Cowen boosted their price objective on Mastercard from $664.00 to $667.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Robert W. Baird lifted their target price on shares of Mastercard from $660.00 to $680.00 and gave the stock an "outperform" rating in a research note on Tuesday, July 7th. Barclays upped their price target on shares of Mastercard from $640.00 to $660.00 and gave the company an "overweight" rating in a report on Friday, July 31st. 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 for the company. Finally, Truist Financial raised their price target on shares of Mastercard from $554.00 to $633.00 and gave the stock a "buy" rating in a report on Wednesday, August 5th. Five equities research analysts have rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating and one has given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Buy" and a consensus target price of $666.64.

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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