Mastercard Incorporated $MA Shares Acquired by Capital Research Global Investors

Key Points

• Capital Research Global Investors increased its Mastercard stake by 4.3% in the fourth quarter, buying 444,142 more shares and bringing its holdings to 10.79 million shares valued at about $6.16 billion.
• Other major institutions also added to their positions, and 97.28% of Mastercard stock is owned by institutional investors and hedge funds, underscoring strong professional interest in the company.
• Mastercard’s latest earnings topped expectations, with Q1 revenue of $8.40 billion and EPS of $4.60, while analysts still broadly rate the stock a Buy despite some recent target price cuts and one downgrade.

Capital Research Global Investors grew its position in Mastercard Incorporated (NYSE:MA - Free Report) by 4.3% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 10,791,976 shares of the credit services provider's stock after acquiring an additional 444,142 shares during the quarter. Mastercard comprises approximately 1.1% of Capital Research Global Investors' portfolio, making the stock its 18th biggest position. Capital Research Global Investors owned approximately 1.20% of Mastercard worth $6,161,003,000 at the end of the most recent quarter.

Several other large investors have also modified their holdings of the company. Capital International Sarl boosted its holdings in shares of Mastercard by 14.2% in the fourth quarter. Capital International Sarl now owns 110,616 shares of the credit services provider's stock valued at $63,148,000 after acquiring an additional 13,791 shares during the period. Capital International Ltd. CA boosted its holdings in shares of Mastercard by 17.5% in the fourth quarter. Capital International Ltd. CA now owns 48,915 shares of the credit services provider's stock valued at $27,925,000 after acquiring an additional 7,280 shares during the period. Capital International Investors boosted its holdings in shares of Mastercard by 4.4% in the fourth quarter. Capital International Investors now owns 17,964,658 shares of the credit services provider's stock valued at $10,256,368,000 after acquiring an additional 759,584 shares during the period. Capital Group Investment Management PTE. LTD. boosted its holdings in shares of Mastercard by 10.8% in the fourth quarter. Capital Group Investment Management PTE. LTD. now owns 10,293 shares of the credit services provider's stock valued at $5,876,000 after acquiring an additional 1,005 shares during the period. Finally, Modus Advisors LLC boosted its holdings in shares of Mastercard by 4.8% in the fourth quarter. Modus Advisors LLC now owns 6,967 shares of the credit services provider's stock valued at $3,978,000 after acquiring an additional 322 shares during the period. 97.28% of the stock is owned by institutional investors and hedge funds.

Key Mastercard News

Here are the key news stories impacting Mastercard this week:

• Positive Sentiment: Mastercard’s CEO said spending growth has been holding up across all income bands, suggesting consumers remain resilient despite higher gas and food prices. That supports the outlook for payment volume and transaction growth. Mastercard CEO: Spending growth has been happening across all income bands
• Positive Sentiment: Mastercard is expanding its open finance ecosystem through a partnership with PaidBy, adding cross-border open banking payments, local-currency account-to-account transactions, and faster settlement. Can Mastercard Strengthen Its Open Finance Ecosystem With PaidBy?
• Positive Sentiment: News that Mastercard is adding stablecoins and broader settlement windows points to continued innovation in payments infrastructure, which could help the company capture more transaction flows and improve settlement efficiency. Mastercard adds stablecoins to payment settlement system
• Positive Sentiment: Mastercard’s leadership shake-up and AI-focused initiatives suggest management is trying to accelerate fintech growth and modernize the business, which investors may view as supportive of long-term expansion. Mastercard Leadership Shake-Up to Drive Fintech Growth
• Neutral Sentiment: Analysts and commentators continue to highlight Mastercard’s strong value-added services and high-return business model, but this is more of a long-term valuation argument than a direct near-term catalyst. Mastercard: Advanced DuPont Analysis Reveals Value-Added Services Are Built To Skyrocket The Share Price
• Negative Sentiment: Mastercard transactions in Cuba are set to be suspended, a reminder that geopolitical and sanctions-related issues can still disrupt some transaction volumes, though the financial impact is likely limited. Visa, Mastercard transactions in Cuba to be suspended, central bank says

Analyst Ratings Changes

MA has been the subject of several research analyst reports. Wall Street Zen downgraded Mastercard from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Wolfe Research reissued an "outperform" rating on shares of Mastercard in a report on Tuesday, March 17th. Royal Bank Of Canada decreased their price objective on Mastercard from $656.00 to $629.00 and set an "outperform" rating for the company in a report on Friday, May 1st. UBS Group decreased their price target on Mastercard from $650.00 to $640.00 and set a "buy" rating for the company in a report on Friday, May 1st. Finally, Susquehanna decreased their price target on Mastercard from $670.00 to $665.00 and set a "positive" rating for the company in a report on Friday, May 1st. Six investment analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Mastercard presently has a consensus rating of "Buy" and a consensus target price of $656.04.

Mastercard Price Performance

Shares of NYSE MA opened at $491.67 on Friday. The company has a debt-to-equity ratio of 2.56, a current ratio of 0.98 and a quick ratio of 0.98. The stock has a fifty day moving average price of $499.81 and a 200 day moving average price of $525.11. Mastercard Incorporated has a 1-year low of $464.52 and a 1-year high of $601.77. The company has a market cap of $434.43 billion, a PE ratio of 28.45, a P/E/G ratio of 1.53 and a beta of 0.74.

Mastercard (NYSE:MA - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The credit services provider reported $4.60 earnings per share for the quarter, topping the consensus estimate of $4.41 by $0.19. Mastercard had a return on equity of 212.96% and a net margin of 45.88%.The firm had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.26 billion. During the same period last year, the company earned $3.73 earnings per share. The company's revenue for the quarter was up 15.8% on a year-over-year basis. Sell-side analysts forecast that Mastercard Incorporated will post 19.6 EPS for the current year.

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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