Mastercard Incorporated (NYSE:MA) is Motley Fool Asset Management LLC's 8th Largest Position

Key Points

• Motley Fool Asset Management LLC reduced its stake in Mastercard by 1.4%, now holding approximately 80,581 shares valued at $44.17 million, making it the firm's 8th largest holding.
• Mastercard reported $4.15 earnings per share for the last quarter, exceeding analysts' expectations, with revenue of $8.13 billion representing a 16.8% increase year-over-year.
• The company has recently declared a quarterly $0.76 dividend, contributing to a modest annual yield of 0.5% and a dividend payout ratio of 20.50%.

Motley Fool Asset Management LLC reduced its position in shares of Mastercard Incorporated (NYSE:MA - Free Report) by 1.4% during the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 80,581 shares of the credit services provider's stock after selling 1,156 shares during the quarter. Mastercard comprises about 2.5% of Motley Fool Asset Management LLC's portfolio, making the stock its 8th biggest position. Motley Fool Asset Management LLC's holdings in Mastercard were worth $44,168,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. Accredited Investors Inc. lifted its position in shares of Mastercard by 2.6% during the first quarter. Accredited Investors Inc. now owns 718 shares of the credit services provider's stock worth $394,000 after purchasing an additional 18 shares during the last quarter. Wealthstream Advisors Inc. lifted its holdings in Mastercard by 2.9% during the 1st quarter. Wealthstream Advisors Inc. now owns 632 shares of the credit services provider's stock worth $347,000 after buying an additional 18 shares during the last quarter. Phillips Wealth Planners LLC lifted its holdings in Mastercard by 1.8% during the 1st quarter. Phillips Wealth Planners LLC now owns 1,055 shares of the credit services provider's stock worth $538,000 after buying an additional 19 shares during the last quarter. Alta Wealth Advisors LLC grew its position in shares of Mastercard by 3.6% in the 1st quarter. Alta Wealth Advisors LLC now owns 540 shares of the credit services provider's stock worth $296,000 after acquiring an additional 19 shares in the last quarter. Finally, May Hill Capital LLC increased its holdings in shares of Mastercard by 2.0% in the 1st quarter. May Hill Capital LLC now owns 986 shares of the credit services provider's stock valued at $540,000 after acquiring an additional 19 shares during the last quarter. 97.28% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several brokerages recently issued reports on MA. Wall Street Zen upgraded Mastercard from a "hold" rating to a "buy" rating in a research note on Friday, July 18th. Jefferies Financial Group reiterated a "buy" rating on shares of Mastercard in a research note on Friday, June 6th. Macquarie cut their target price on shares of Mastercard from $645.00 to $610.00 and set an "outperform" rating on the stock in a report on Friday, May 2nd. Royal Bank Of Canada upped their target price on Mastercard from $650.00 to $656.00 and gave the company an "outperform" rating in a report on Friday, August 1st. Finally, Truist Financial dropped their price target on Mastercard from $640.00 to $612.00 and set a "buy" rating on the stock in a research report on Thursday, July 17th. Five investment analysts have rated the stock with a hold rating, twenty-five have assigned a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $615.33.

Mastercard Price Performance

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

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

Mastercard Announces Dividend

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

Insider Buying and Selling

In related news, insider Raj Seshadri sold 1,100 shares of Mastercard stock in a transaction on Friday, June 27th. The shares were sold at an average price of $546.77, for a total transaction of $601,447.00. Following the transaction, the insider owned 12,921 shares in the company, valued at approximately $7,064,815.17. The trade was a 7.85% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Julius Genachowski sold 312 shares of the business's stock in a transaction on Monday, July 7th. The stock was sold at an average price of $570.67, for a total transaction of $178,049.04. Following the completion of the sale, the director owned 8,469 shares in the company, valued at approximately $4,833,004.23. The trade was a 3.55% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 38,453 shares of company stock worth $20,178,667. Company insiders own 0.09% of the company's stock.

About Mastercard

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.