Capital World Investors Sells 247,689 Shares of Mastercard Incorporated $MA

Key Points

• Capital World Investors sold 247,689 shares of Mastercard in the third quarter, a 4.9% reduction that leaves it with 4,820,936 shares (about a 0.54% stake) valued at roughly $2.74 billion.
• Mastercard beat earnings expectations for the quarter with $4.76 EPS vs. $4.24 expected and reported $8.81 billion in revenue (up 17.5% year-over-year), while posting a 45.65% net margin and a 203.92% return on equity.
• The stock has a market cap of $461.68 billion and a trailing PE of 31.34, the company declared a $0.87 quarterly dividend (annualized $3.48, ~0.7% yield), and analysts maintain a consensus Buy rating with an average target near $670.61.

Capital World Investors lowered its holdings in shares of Mastercard Incorporated (NYSE:MA - Free Report) by 4.9% in the third quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 4,820,936 shares of the credit services provider's stock after selling 247,689 shares during the period. Capital World Investors owned about 0.54% of Mastercard worth $2,742,161,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also modified their holdings of the company. Evolution Wealth Management Inc. acquired a new position in Mastercard during the second quarter worth about $29,000. Robbins Farley boosted its stake in shares of Mastercard by 50.0% in the 3rd quarter. Robbins Farley now owns 54 shares of the credit services provider's stock valued at $31,000 after purchasing an additional 18 shares in the last quarter. Tacita Capital Inc boosted its stake in shares of Mastercard by 50.0% in the 3rd quarter. Tacita Capital Inc now owns 57 shares of the credit services provider's stock valued at $32,000 after purchasing an additional 19 shares in the last quarter. Foster Dykema Cabot & Partners LLC grew its holdings in shares of Mastercard by 250.0% during the 3rd quarter. Foster Dykema Cabot & Partners LLC now owns 56 shares of the credit services provider's stock valued at $32,000 after purchasing an additional 40 shares during the last quarter. Finally, Sagard Holdings Management Inc. bought a new stake in shares of Mastercard during the 2nd quarter valued at approximately $37,000. 97.28% of the stock is currently owned by institutional investors.

Mastercard Price Performance

Shares of MA opened at $517.69 on Tuesday. Mastercard Incorporated has a 52-week low of $465.59 and a 52-week high of $601.77. The company has a debt-to-equity ratio of 2.36, a quick ratio of 1.03 and a current ratio of 1.03. The business's 50 day moving average price is $538.29 and its two-hundred day moving average price is $556.61. The firm has a market cap of $461.68 billion, a PE ratio of 31.34, a price-to-earnings-growth ratio of 1.69 and a beta of 0.83.

Mastercard (NYSE:MA - Get Free Report) last announced its earnings results on Thursday, January 29th. The credit services provider reported $4.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.24 by $0.52. Mastercard had a return on equity of 203.92% and a net margin of 45.65%.The company had revenue of $8.81 billion for the quarter, compared to analysts' expectations of $8.80 billion. During the same quarter in the previous year, the firm earned $3.82 earnings per share. Mastercard's quarterly revenue was up 17.5% on a year-over-year basis. On average, equities analysts anticipate that Mastercard Incorporated will post 15.91 EPS for the current year.

Mastercard Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 8th. Shareholders of record on Thursday, April 9th will be paid a $0.87 dividend. The ex-dividend date is Thursday, April 9th. This represents a $3.48 annualized dividend and a yield of 0.7%. Mastercard's dividend payout ratio (DPR) is 21.07%.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on MA shares. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Mastercard in a report on Thursday, January 22nd. Raymond James Financial reduced their price target on Mastercard from $707.00 to $631.00 and set an "outperform" rating on the stock in a report on Thursday, January 29th. Rothschild & Co Redburn set a $685.00 price objective on shares of Mastercard in a report on Wednesday, January 28th. Evercore set a $610.00 target price on shares of Mastercard in a research report on Friday, December 12th. Finally, Royal Bank Of Canada restated an "outperform" rating and issued a $656.00 price target on shares of Mastercard in a research report on Friday, January 30th. Six research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and an average target price of $670.61.

Mastercard Company 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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