Mastercard Incorporated $MA Stock Position Lifted by CapWealth Advisors LLC

Key Points

• CapWealth Advisors increased its Mastercard position by 7.1% in the third quarter, bringing its holdings to 35,599 shares valued at approximately $19.6 million. Institutional investors collectively own 97.28% of the company.
• Analysts remain broadly positive, with 32 of 34 covering analysts rating Mastercard a Buy or Strong Buy. The stock has an average price target of $680, implying potential upside from its reported price of $563.19.
• Mastercard reported quarterly EPS of $5.04 and revenue of $9.28 billion, exceeding estimates, while revenue rose 14.1% year over year. The company also declared a quarterly dividend of $0.87 per share, representing a 0.6% annualized yield.

CapWealth Advisors LLC grew its position in Mastercard Incorporated (NYSE:MA - Free Report) by 7.1% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 35,599 shares of the credit services provider's stock after purchasing an additional 2,348 shares during the quarter. CapWealth Advisors LLC's holdings in Mastercard were worth $19,632,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently made changes to their positions in MA. Cardano Risk Management B.V. grew its stake in Mastercard by 861.6% during the 4th quarter. Cardano Risk Management B.V. now owns 4,072,210 shares of the credit services provider's stock worth $2,324,743,000 after buying an additional 3,648,748 shares during the last quarter. Fundsmith LLP acquired a new stake in Mastercard in the second quarter worth about $639,458,000. Corient Private Wealth LP boosted its holdings in Mastercard by 147.2% in the second quarter. Corient Private Wealth LP now owns 1,682,183 shares of the credit services provider's stock worth $863,969,000 after acquiring an additional 1,001,671 shares in the last quarter. Capital International Investors grew its stake in shares of Mastercard by 4.4% during the fourth quarter. Capital International Investors now owns 17,964,658 shares of the credit services provider's stock worth $10,256,368,000 after acquiring an additional 759,584 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its stake in shares of Mastercard by 30.8% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,111,652 shares of the credit services provider's stock worth $1,776,380,000 after acquiring an additional 733,101 shares during the last quarter. Hedge funds and other institutional investors own 97.28% of the company's stock.

Analyst Ratings Changes

MA has been the subject of several research analyst reports. JPMorgan Chase & Co. increased their price objective on shares of Mastercard from $655.00 to $720.00 and gave the company an "overweight" rating in a research report on Friday, July 31st. Loop Capital boosted their target price on shares of Mastercard from $631.00 to $647.00 and gave the stock a "buy" rating in a research report on Friday, July 31st. BNP Paribas Exane upped their price target on shares of Mastercard from $680.00 to $713.00 and gave the company an "outperform" rating in a research note on Friday, August 7th. Weiss Ratings raised shares of Mastercard from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday. Finally, Truist Financial lifted their price objective on shares of Mastercard from $554.00 to $633.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Two investment analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $680.00.

Insider Buying and Selling

In related news, insider Sachin Mehra sold 7,444 shares of the business's stock in a transaction on 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. The trade was a 15.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Linda Kirkpatrick sold 4,280 shares of the company's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $570.31, for a total transaction of $2,440,926.80. Following the completion of the sale, the insider directly owned 31,179 shares in the company, valued at approximately $17,781,695.49. The trade was a 12.07% 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. Insiders sold a total of 67,618 shares of company stock valued at $38,854,630 over the last 90 days. Insiders own 0.09% of the company's stock.

Mastercard Stock Performance

Shares of Mastercard stock traded up $10.93 on Monday, reaching $563.19. 940,453 shares of the stock were exchanged, compared to its average volume of 3,529,452. The business has a 50 day moving average price of $571.56 and a two-hundred day moving average price of $528.68. The firm has a market capitalization of $493.36 billion, a price-to-earnings ratio of 30.98, a PEG ratio of 1.58 and a beta of 0.76. Mastercard Incorporated has a twelve month low of $464.52 and a twelve month high of $601.23. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 3.96.

Mastercard (NYSE:MA - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The credit services provider reported $5.04 earnings per share for the quarter, topping 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 company had revenue of $9.28 billion for the quarter, compared to the consensus estimate of $9.08 billion. During the same quarter in the prior year, the company earned $4.15 EPS. Mastercard's quarterly revenue was up 14.1% on a year-over-year basis. Analysts anticipate that Mastercard Incorporated will post 19.9 earnings per share for the current fiscal year.

Mastercard Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 9th. Stockholders of record on Friday, October 9th will be paid a $0.87 dividend. The ex-dividend date is Friday, October 9th. This represents a $3.48 dividend on an annualized basis and a dividend 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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