Mastercard Incorporated $MA Stake Decreased by Assenagon Asset Management S.A.

Key Points

• Assenagon Asset Management cut its Mastercard stake by 72% in the third quarter, selling 618,966 shares and retaining 241,045 shares valued at approximately $132.9 million. Institutional investors still own 97.28% of the company.
• Analysts remain broadly bullish, with Mastercard carrying a “Moderate Buy” consensus rating and an average price target of $682.66, above its reported share price of $617.14.
• Mastercard reported strong quarterly results, including $5.04 in adjusted EPS and $9.28 billion in revenue, with revenue up 14.1% year over year. The company also declared a quarterly dividend of $0.87 per share, equivalent to a 0.6% annualized yield.

Assenagon Asset Management S.A. trimmed its position in shares of Mastercard Incorporated (NYSE:MA - Free Report) by 72.0% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 241,045 shares of the credit services provider's stock after selling 618,966 shares during the quarter. Assenagon Asset Management S.A.'s holdings in Mastercard were worth $132,929,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also added to or reduced their stakes in the company. Fundsmith LLP purchased a new position in Mastercard during the second quarter valued at approximately $639,458,000. Corient Private Wealth LP increased its stake in Mastercard by 147.2% in the 2nd quarter. Corient Private Wealth LP now owns 1,682,183 shares of the credit services provider's stock worth $863,969,000 after buying an additional 1,001,671 shares in the last quarter. T. Rowe Price Investment Management Inc. increased its stake in Mastercard by 31.6% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,524,059 shares of the credit services provider's stock worth $1,440,935,000 after buying an additional 605,608 shares in the last quarter. SEB Asset Management AB bought a new stake in Mastercard during the first quarter valued at about $293,574,000. Finally, Soroban Capital Partners LP raised its holdings in Mastercard by 30.5% during the first quarter. Soroban Capital Partners LP now owns 2,464,499 shares of the credit services provider's stock valued at $1,231,412,000 after acquiring an additional 575,412 shares during the period. 97.28% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several research analysts have weighed in on the company. BMO Capital Markets restated an "outperform" rating and issued a $665.00 price target on shares of Mastercard in a research note on Thursday. Evercore lifted their target price on Mastercard from $550.00 to $620.00 in a report on Friday, July 31st. President Capital increased their price objective on shares of Mastercard from $693.00 to $729.00 and gave the stock a "buy" rating in a research report on Monday, August 17th. Morgan Stanley boosted their target price on shares of Mastercard from $679.00 to $681.00 and gave the company an "overweight" rating in a research note on Friday, July 31st. Finally, Clear Str upgraded Mastercard to a "strong-buy" rating in a report on Thursday, July 16th. Two analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $682.66.

Trending Headlines about Mastercard

Here are the key news stories impacting Mastercard this week:

• Positive Sentiment: Broader investor rotation is supporting the stock. Mastercard is among the companies reaching record levels as investors diversify beyond the artificial-intelligence and semiconductor trade. Upcoming earnings could help sustain the broader market rally. Coca-Cola, Visa and Mastercard Hit Records as Investors Rotate Out of Chip Stocks
• Positive Sentiment: Potentially improved access to China is a significant catalyst. U.S. officials raised market-access issues for Mastercard and Citigroup during bilateral talks, reiterating that approval for expanded operations had been agreed upon during September’s U.S.-China discussions. Greater access could expand Mastercard’s long-term payments opportunity in China. U.S. raises Mastercard, Citigroup China market access in bilateral Bangkok talks
• Positive Sentiment: The Global Money Platform expands Mastercard’s role in digital payments. Mastercard and BVNK launched a single-API platform allowing banks, fintechs and businesses to hold, convert and spend fiat currencies and stablecoins across Mastercard’s network. The product is the first major integration since Mastercard acquired BVNK and could create new transaction and infrastructure revenue opportunities. Mastercard and BVNK Launch Global Money Platform to Power a Multi-Money World
• Positive Sentiment: Analysts expect another earnings beat. Coverage points to Mastercard’s history of exceeding consensus estimates and favorable earnings-surprise indicators. That optimism is supported by the company’s latest reported quarter, when revenue grew 14.1% year over year and earnings exceeded expectations. Will MasterCard Beat Estimates Again in Its Next Earnings Report?
• Neutral Sentiment: Technical momentum is strong, but valuation warrants monitoring. Mastercard has extended a multiday winning streak and moved into a buy zone, while commentary suggests the stock could be undervalued if its returns on capital remain durable. However, its elevated valuation means disappointing guidance or slower payments growth could increase downside risk. Mastercard Stock Could Be 32% Undervalued After Stablecoin Payments Push

Insider Activity at Mastercard

In related news, CEO Michael Miebach sold 16,628 shares of the firm's stock in a transaction dated Friday, July 31st. The shares were sold at an average price of $567.68, for a total value of $9,439,383.04. Following the transaction, the chief executive officer directly owned 115,921 shares of the company's stock, valued at approximately $65,806,033.28. This trade represents a 12.54% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Sachin Mehra sold 7,444 shares of the firm's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $577.13, for a total transaction of $4,296,155.72. Following the completion of the transaction, the insider directly owned 40,916 shares in the company, valued at $23,613,851.08. This represents a 15.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 68,359 shares of company stock valued at $39,290,046. 0.09% of the stock is currently owned by company insiders.

Mastercard Stock Up 0.1%

Mastercard stock opened at $617.14 on Friday. Mastercard Incorporated has a fifty-two week low of $464.52 and a fifty-two week high of $622.49. The business's 50-day simple moving average is $575.99 and its two-hundred day simple moving average is $534.99. The company has a debt-to-equity ratio of 3.96, a quick ratio of 1.06 and a current ratio of 1.06. The company has a market cap of $540.62 billion, a PE ratio of 33.95, a PEG ratio of 1.76 and a beta of 0.76.

Mastercard (NYSE:MA - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The credit services provider reported $5.04 EPS for the quarter, beating the consensus estimate of $4.77 by $0.27. Mastercard had a net margin of 46.34% and a return on equity of 239.99%. The business had revenue of $9.28 billion for the quarter, compared to the consensus estimate of $9.08 billion. During the same period in the prior year, the firm earned $4.15 EPS. The business's revenue for the quarter was up 14.1% on a year-over-year basis. Equities analysts anticipate that Mastercard Incorporated will post 19.91 EPS for the current year.

Mastercard Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, November 9th. Investors of record on Friday, October 9th will be issued a $0.87 dividend. The ex-dividend date of this dividend is Friday, October 9th. This represents a $3.48 dividend on an annualized basis and a yield of 0.6%. Mastercard's dividend payout ratio is presently 19.14%.

Mastercard Profile

Mastercard Incorporated NYSE: MA is a global payments technology company that operates a network connecting consumers, financial institutions, merchants, governments and businesses. The company facilitates the authorization, clearing and settlement of electronic payment transactions, while generally not issuing cards or extending credit itself. Its network supports payments made in stores, online and through mobile devices.

Mastercard's products and services include consumer and commercial payment cards, digital payment solutions, payment processing, fraud prevention, cybersecurity, identity verification, data and analytics, and open banking tools.

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