Wellington Management Group LLP Purchases 3,765,378 Shares of Mastercard Incorporated $MA

Key Points

• Wellington Management Group LLP increased its stake in Mastercard by 38.6%, making it the 9th largest position in their portfolio, with 13.5 million shares valued at approximately $7.41 billion.
• Mastercard’s latest earnings report showed an EPS of $4.15, exceeding analyst expectations, and a revenue of $8.13 billion, reflecting a year-over-year growth of 16.8%.
• The current consensus rating for Mastercard is a "Moderate Buy" with an average price target of $617.93, following recent upgrades from several analysts including TD Cowen and Royal Bank of Canada.

Wellington Management Group LLP raised its holdings in Mastercard Incorporated (NYSE:MA - Free Report) by 38.6% during the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 13,526,118 shares of the credit services provider's stock after acquiring an additional 3,765,378 shares during the quarter. Mastercard makes up 1.4% of Wellington Management Group LLP's holdings, making the stock its 9th largest holding. Wellington Management Group LLP owned about 1.48% of Mastercard worth $7,413,936,000 as of its most recent SEC filing.

Other hedge funds also recently bought and sold shares of the company. Keystone Global Partners LLC bought a new position in Mastercard in the 1st quarter valued at $31,000. Measured Risk Portfolios Inc. bought a new position in Mastercard in the 4th quarter valued at $31,000. 10Elms LLP bought a new position in Mastercard in the 4th quarter valued at $33,000. Hughes Financial Services LLC bought a new position in Mastercard in the 1st quarter valued at $34,000. Finally, Navigoe LLC purchased a new stake in shares of Mastercard in the 4th quarter worth $33,000. Institutional investors own 97.28% of the company's stock.

Mastercard Stock Up 1.1%

Shares of NYSE MA traded up $6.2280 during mid-day trading on Friday, reaching $598.1480. 2,388,839 shares of the company were exchanged, compared to its average volume of 2,623,511. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 2.41. The stock has a market cap of $540.73 billion, a price-to-earnings ratio of 40.33, a P/E/G ratio of 2.43 and a beta of 1.03. Mastercard Incorporated has a 1 year low of $461.90 and a 1 year high of $601.77. The firm has a 50-day moving average of $564.03 and a 200 day moving average of $555.73.

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

Mastercard Dividend Announcement

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

Insider Buying and Selling

In other Mastercard news, insider Linda Pistecchia Kirkpatrick sold 958 shares of the stock in a transaction dated Monday, June 30th. The stock was sold at an average price of $560.00, for a total value of $536,480.00. Following the completion of the sale, the insider directly owned 23,624 shares in the company, valued at approximately $13,229,440. This trade represents a 3.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Julius Genachowski sold 312 shares of the stock in a transaction dated Monday, July 7th. The shares were sold at an average price of $570.67, for a total value of $178,049.04. Following the completion of the sale, the director owned 8,469 shares of the company's stock, valued at approximately $4,833,004.23. This trade represents a 3.55% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 56,269 shares of company stock valued at $30,634,699 in the last 90 days. 0.09% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the company. Citigroup upped their target price on Mastercard from $650.00 to $652.00 and gave the stock a "buy" rating in a report on Monday, May 5th. Truist Financial lowered their target price on Mastercard from $640.00 to $612.00 and set a "buy" rating for the company in a report on Thursday, July 17th. Deutsche Bank Aktiengesellschaft assumed coverage on Mastercard in a report on Thursday, July 17th. They issued a "buy" rating and a $650.00 target price for the company. Morgan Stanley upped their target price on Mastercard from $639.00 to $661.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Finally, The Goldman Sachs Group reiterated a "buy" rating on shares of Mastercard in a report on Friday, August 1st. Two investment analysts have rated the stock with a Strong Buy rating, twenty-four have given a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Mastercard has an average rating of "Moderate Buy" and a consensus target price of $617.93.

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.