Generation Investment Management LLP Sells 314,031 Shares of Mastercard Incorporated $MA

Key Points

• Generation Investment Management LLP has reduced its holdings in Mastercard by 33.1%, now owning 635,999 shares valued at approximately $348.6 million.
• Mastercard recently reported earnings of $4.15 per share, exceeding expectations, with a revenue of $8.13 billion—a 16.8% increase year-over-year.
• Institutional investors hold 97.28% of Mastercard's stock, indicating significant confidence in the company's performance and stability.

Generation Investment Management LLP lessened its holdings in Mastercard Incorporated (NYSE:MA - Free Report) by 33.1% during the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 635,999 shares of the credit services provider's stock after selling 314,031 shares during the quarter. Mastercard comprises 2.1% of Generation Investment Management LLP's portfolio, making the stock its 19th largest position. Generation Investment Management LLP owned approximately 0.07% of Mastercard worth $348,604,000 as of its most recent SEC filing.

Other large investors have also recently made changes to their positions in the company. Accredited Investors Inc. boosted its holdings in Mastercard by 2.6% in the first quarter. Accredited Investors Inc. now owns 718 shares of the credit services provider's stock worth $394,000 after acquiring an additional 18 shares in the last quarter. Wealthstream Advisors Inc. grew its position in Mastercard by 2.9% during the 1st quarter. Wealthstream Advisors Inc. now owns 632 shares of the credit services provider's stock valued at $347,000 after purchasing an additional 18 shares during the last quarter. Phillips Wealth Planners LLC raised its holdings in Mastercard by 1.8% in the first quarter. Phillips Wealth Planners LLC now owns 1,055 shares of the credit services provider's stock worth $538,000 after buying an additional 19 shares during the last quarter. Alta Wealth Advisors LLC grew its holdings in shares of Mastercard by 3.6% during the first quarter. Alta Wealth Advisors LLC now owns 540 shares of the credit services provider's stock valued at $296,000 after buying an additional 19 shares during the last quarter. Finally, May Hill Capital LLC increased its position in shares of Mastercard by 2.0% during the first quarter. May Hill Capital LLC now owns 986 shares of the credit services provider's stock valued at $540,000 after acquiring an additional 19 shares in the last quarter. 97.28% of the stock is currently owned by hedge funds and other institutional investors.

Mastercard Price Performance

NYSE:MA traded down $11.43 during trading hours on Friday, hitting $584.21. 2,432,106 shares of the stock traded hands, compared to its average volume of 2,252,842. The company has a market cap of $528.13 billion, a price-to-earnings ratio of 39.39, a price-to-earnings-growth ratio of 2.44 and a beta of 0.99. Mastercard Incorporated has a 1 year low of $465.59 and a 1 year high of $601.77. The stock has a 50 day moving average price of $572.59 and a 200 day moving average price of $557.60. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 2.41.

Mastercard (NYSE:MA - Get Free Report) last released its earnings results on Thursday, July 31st. The credit services provider reported $4.15 earnings per share for the quarter, beating analysts' consensus estimates of $4.05 by $0.10. Mastercard had a net margin of 44.93% and a return on equity of 200.01%. The company had revenue of $8.13 billion for the quarter, compared to analysts' expectations of $7.95 billion. During the same quarter in the previous year, the company earned $3.50 EPS. Mastercard's revenue for the quarter was up 16.8% on a year-over-year basis. Sell-side analysts forecast that Mastercard Incorporated will post 15.91 EPS for the current fiscal year.

Mastercard Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 8th. Investors of record on Wednesday, July 9th were issued a $0.76 dividend. The ex-dividend date of this dividend was Wednesday, July 9th. This represents a $3.04 dividend on an annualized basis and a yield of 0.5%. Mastercard's payout ratio is currently 20.50%.

Insiders Place Their Bets

In other Mastercard news, Director Julius Genachowski sold 312 shares of the stock in a transaction that occurred on Monday, July 7th. The shares were sold at an average price of $570.67, for a total transaction of $178,049.04. Following the completion of the sale, the director directly owned 8,469 shares of the company's stock, valued at $4,833,004.23. This trade represents a 3.55% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO J. Mehra Sachin sold 17,816 shares of the company's stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $586.89, for a total transaction of $10,456,032.24. Following the transaction, the chief financial officer owned 31,234 shares of the company's stock, valued at approximately $18,330,922.26. This represents a 36.32% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 59,481 shares of company stock worth $32,616,595 over the last ninety days. 0.09% of the stock is owned by company insiders.

Analysts Set New Price Targets

A number of research firms have commented on MA. Wall Street Zen raised Mastercard from a "hold" rating to a "buy" rating in a report on Friday, July 18th. KeyCorp lifted their price objective on Mastercard from $635.00 to $660.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Jefferies Financial Group restated a "buy" rating on shares of Mastercard in a research note on Friday, June 6th. TD Cowen reiterated a "buy" rating and issued a $645.00 price target on shares of Mastercard in a research note on Monday, August 11th. Finally, Royal Bank Of Canada increased their price objective on shares of Mastercard from $650.00 to $656.00 and gave the company an "outperform" rating in a research report on Friday, August 1st. Two analysts have rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $626.54.

Mastercard Company Profile

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers integrated products and value-added services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; and commercial credit, debit, and prepaid payment products and solutions.