Nuveen LLC Takes Position in Mastercard Incorporated (NYSE:MA)

Key Points

• Nuveen LLC has made a significant investment in Mastercard by acquiring 7,733,277 shares valued at approximately $4.24 billion, making it the 8th largest position in its portfolio.
• Mastercard reported a strong quarterly performance with a net margin of 44.93% and EPS of $4.15, exceeding estimates by $0.10, and generating revenue of $8.13 billion, up 16.8% year-over-year.
• Insider trading activity included the sale of shares by key executives, with a total of 38,603 shares sold worth over $20 million in the last three months, indicating shifts in insider ownership.

Nuveen LLC bought a new stake in Mastercard Incorporated (NYSE:MA - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 7,733,277 shares of the credit services provider's stock, valued at approximately $4,238,764,000. Mastercard accounts for about 1.3% of Nuveen LLC's portfolio, making the stock its 8th largest position. Nuveen LLC owned 0.85% of Mastercard as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently made changes to their positions in the company. Measured Risk Portfolios Inc. acquired a new stake in Mastercard during the 4th quarter worth about $31,000. Navigoe LLC acquired a new stake in Mastercard during the 4th quarter worth about $33,000. 10Elms LLP acquired a new stake in Mastercard during the 4th quarter worth about $33,000. Hughes Financial Services LLC acquired a new stake in Mastercard during the 1st quarter worth about $34,000. Finally, Mpwm Advisory Solutions LLC acquired a new stake in Mastercard during the 4th quarter worth about $36,000. 97.28% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on MA shares. Seaport Res Ptn raised Mastercard from a "hold" rating to a "strong-buy" rating in a research report on Monday, July 14th. Wells Fargo & Company increased their price target on Mastercard from $625.00 to $650.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Truist Financial dropped their target price on Mastercard from $640.00 to $612.00 and set a "buy" rating on the stock in a research report on Thursday, July 17th. Jefferies Financial Group restated a "buy" rating on shares of Mastercard in a research report on Friday, June 6th. Finally, Royal Bank Of Canada raised their target price on Mastercard from $650.00 to $656.00 and gave the company an "outperform" rating in a research report on Friday, August 1st. Five 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 stock. According to MarketBeat.com, Mastercard presently has a consensus rating of "Moderate Buy" and a consensus target price of $615.33.

Mastercard Price Performance

MA traded up $0.29 during trading on Tuesday, reaching $573.88. The company's stock had a trading volume of 2,593,766 shares, compared to its average volume of 2,583,637. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 2.41. The firm has a fifty day simple moving average of $563.59 and a two-hundred day simple moving average of $553.98. Mastercard Incorporated has a 1 year low of $454.89 and a 1 year high of $594.71. The company has a market cap of $518.80 billion, a price-to-earnings ratio of 38.70, a PEG ratio of 2.36 and a beta of 1.03.

Mastercard (NYSE:MA - Get Free Report) last released 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. Mastercard had a net margin of 44.93% and a return on equity of 200.01%. The business had revenue of $8.13 billion for the quarter, compared to analyst estimates of $7.95 billion. During the same period last year, the company posted $3.50 EPS. The business's revenue was up 16.8% on a year-over-year basis. As a group, analysts anticipate that Mastercard Incorporated will post 15.91 EPS for the current year.

Mastercard Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 8th. Shareholders of record on Wednesday, July 9th were paid a $0.76 dividend. This represents a $3.04 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend was Wednesday, July 9th. Mastercard's dividend payout ratio (DPR) is 20.50%.

Insider Buying and Selling at Mastercard

In other news, insider Linda Pistecchia Kirkpatrick sold 959 shares of Mastercard stock in a transaction that occurred on Friday, June 13th. The shares were sold at an average price of $572.86, for a total transaction of $549,372.74. Following the sale, the insider owned 25,540 shares of the company's stock, valued at approximately $14,630,844.40. The trade was a 3.62% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Raj Seshadri sold 1,100 shares of Mastercard stock in a transaction that occurred 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 sale, the insider directly 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 disclosure for this sale can be found here. Over the last 90 days, insiders sold 38,453 shares of company stock valued at $20,178,667. Company insiders own 0.09% of the company's stock.

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.