Mastercard Incorporated (NYSE:MA) Shares Sold by Magellan Asset Management Ltd

Key Points

• Magellan Asset Management Ltd has reduced its stake in Mastercard by 6.3%, bringing its total shares to 699,865, making it the fund's 4th largest holding.
• Mastercard recently reported $4.15 earnings per share for the quarter, exceeding estimates, and saw a 16.8% year-over-year revenue growth to $8.13 billion.
• The company announced a quarterly dividend of $0.76 per share, which represents a 0.5% yield and a payout ratio of 20.50%.

Magellan Asset Management Ltd cut its holdings in Mastercard Incorporated (NYSE:MA - Free Report) by 6.3% in the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 699,865 shares of the credit services provider's stock after selling 47,299 shares during the quarter. Mastercard accounts for approximately 4.7% of Magellan Asset Management Ltd's investment portfolio, making the stock its 4th largest position. Magellan Asset Management Ltd owned 0.08% of Mastercard worth $383,610,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently modified their holdings of MA. Vanguard Group Inc. boosted its stake in Mastercard by 0.5% during the first quarter. Vanguard Group Inc. now owns 77,544,675 shares of the credit services provider's stock worth $42,503,787,000 after buying an additional 365,537 shares during the period. Northern Trust Corp boosted its stake in Mastercard by 15.2% during the fourth quarter. Northern Trust Corp now owns 9,149,181 shares of the credit services provider's stock worth $4,817,684,000 after buying an additional 1,207,787 shares during the period. GAMMA Investing LLC boosted its stake in Mastercard by 65,631.5% during the first quarter. GAMMA Investing LLC now owns 8,225,637 shares of the credit services provider's stock worth $4,508,636,000 after buying an additional 8,213,123 shares during the period. Nuveen Asset Management LLC lifted its position in shares of Mastercard by 1.0% during the fourth quarter. Nuveen Asset Management LLC now owns 7,610,333 shares of the credit services provider's stock worth $4,007,373,000 after purchasing an additional 71,874 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Mastercard by 11.5% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,033,571 shares of the credit services provider's stock worth $3,703,667,000 after purchasing an additional 724,887 shares during the last quarter. 97.28% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other Mastercard news, insider Linda Pistecchia Kirkpatrick sold 958 shares of the company's stock in a transaction that occurred on Monday, June 30th. The stock was sold at an average price of $560.00, for a total value of $536,480.00. Following the sale, the insider owned 23,624 shares in the company, valued at approximately $13,229,440. This represents a 3.90% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, 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 value of $178,049.04. Following the transaction, the director owned 8,469 shares in the company, valued at $4,833,004.23. This trade represents a 3.55% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 38,453 shares of company stock worth $20,178,667. 0.09% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several analysts have recently weighed in on MA shares. Wall Street Zen upgraded Mastercard from a "hold" rating to a "buy" rating in a research report on Friday, July 18th. Wells Fargo & Company lifted their target price on Mastercard from $625.00 to $650.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Citigroup lifted their target price on Mastercard from $650.00 to $652.00 and gave the stock a "buy" rating in a research report on Monday, May 5th. Deutsche Bank Aktiengesellschaft began coverage on Mastercard in a research report on Thursday, July 17th. They set a "buy" rating and a $650.00 target price for the company. Finally, UBS Group lifted their price objective on Mastercard from $660.00 to $670.00 and gave the company a "buy" rating in a report on Tuesday, June 3rd. Five equities research analysts have rated the stock with a hold rating, twenty-five have assigned a buy rating and two have given a strong buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $615.33.

Mastercard Stock Performance

NYSE MA traded up $0.29 during trading hours on Tuesday, reaching $573.88. The stock had a trading volume of 2,593,766 shares, compared to its average volume of 2,583,637. The stock has a fifty day moving average of $563.59 and a 200 day moving average of $553.98. The stock has a market cap of $518.80 billion, a P/E ratio of 38.70, a price-to-earnings-growth ratio of 2.36 and a beta of 1.03. Mastercard Incorporated has a 52-week low of $454.89 and a 52-week high of $594.71. The company has a debt-to-equity ratio of 2.41, a quick ratio of 1.16 and a current ratio of 1.16.

Mastercard (NYSE:MA - Get Free Report) last issued its 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 firm had revenue of $8.13 billion for the quarter, compared to analyst estimates of $7.95 billion. During the same quarter in the prior year, the firm earned $3.50 earnings per share. Mastercard's revenue for the quarter was up 16.8% on a year-over-year basis. Sell-side analysts predict that Mastercard Incorporated will post 15.91 earnings per share for the current year.

Mastercard Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 8th. Shareholders of record on Wednesday, July 9th were given a $0.76 dividend. This represents a $3.04 annualized dividend and a yield of 0.5%. The ex-dividend date was Wednesday, July 9th. Mastercard's dividend payout ratio is currently 20.50%.

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.