PineStone Asset Management Inc. Sells 43,240 Shares of Mastercard Incorporated $MA

Key Points

• PineStone Asset Management reduced its Mastercard stake by 2.4%, selling 43,240 shares and retaining 1.79 million shares worth approximately $986.5 million. Institutional investors and hedge funds collectively own 97.28% of Mastercard.
• Mastercard insiders have also been selling shares, including CEO Michael Miebach’s $8.84 million sale and Linda Kirkpatrick’s $2.44 million sale; insiders sold 68,359 shares worth $39.3 million over the past three months.
• Wall Street remains bullish: Mastercard has a “Moderate Buy” consensus rating and an average price target of $682.66. The company recently beat earnings and revenue estimates, with revenue rising 14.1% year over year.

PineStone Asset Management Inc. cut its stake in shares of Mastercard Incorporated (NYSE:MA - Free Report) by 2.4% during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 1,788,772 shares of the credit services provider's stock after selling 43,240 shares during the quarter. Mastercard comprises about 6.5% of PineStone Asset Management Inc.'s investment portfolio, making the stock its 5th largest position. PineStone Asset Management Inc. owned approximately 0.20% of Mastercard worth $986,454,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds have also made changes to their positions in MA. State Street Corp boosted its holdings in Mastercard by 1.3% during the second quarter. State Street Corp now owns 36,964,305 shares of the credit services provider's stock worth $18,984,867,000 after buying an additional 486,283 shares in the last quarter. Jennison Associates LLC increased its holdings in Mastercard by 10.4% in the first quarter. Jennison Associates LLC now owns 5,123,041 shares of the credit services provider's stock valued at $2,559,779,000 after buying an additional 480,725 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in Mastercard by 1.0% in the first quarter. Dimensional Fund Advisors LP now owns 4,225,359 shares of the credit services provider's stock valued at $2,111,216,000 after buying an additional 42,871 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in Mastercard by 17.8% in the first quarter. Arrowstreet Capital Limited Partnership now owns 3,666,018 shares of the credit services provider's stock valued at $1,831,763,000 after buying an additional 554,366 shares in the last quarter. Finally, Amundi lifted its position in shares of Mastercard by 5.8% during the 2nd quarter. Amundi now owns 3,626,416 shares of the credit services provider's stock valued at $1,862,527,000 after acquiring an additional 199,424 shares during the period. 97.28% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Mastercard

In related news, insider Linda Kirkpatrick sold 4,280 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $570.31, for a total value of $2,440,926.80. Following the sale, the insider owned 31,179 shares of the company's stock, valued at approximately $17,781,695.49. This represents a 12.07% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael Miebach sold 15,372 shares of the stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $575.00, for a total value of $8,838,900.00. Following the sale, the chief executive officer owned 93,693 shares in the company, valued at approximately $53,873,475. This trade represents a 14.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 68,359 shares of company stock valued at $39,290,046 over the last three months. Company insiders own 0.09% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have recently commented on MA. Truist Financial boosted their price target on Mastercard from $554.00 to $633.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. The Goldman Sachs Group restated a "buy" rating and issued a $701.00 price target (up from $674.00) on shares of Mastercard in a report on Thursday, July 30th. Dbs Bank raised Mastercard to a "moderate buy" rating in a research note on Friday, August 21st. Cantor Fitzgerald raised their price objective on Mastercard from $650.00 to $695.00 and gave the company an "overweight" rating in a research note on Monday, August 3rd. Finally, BNP Paribas Exane lifted their price objective on Mastercard from $680.00 to $713.00 and gave the stock an "outperform" rating in a report on Friday, August 7th. 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 assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $682.66.

Key Mastercard News

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

Mastercard Price Performance

Shares of NYSE MA opened at $617.14 on Friday. The stock has a market cap of $540.62 billion, a price-to-earnings ratio of 33.95, a PEG ratio of 1.77 and a beta of 0.76. Mastercard Incorporated has a 52 week low of $464.52 and a 52 week high of $622.49. The company's 50-day moving average price is $575.99 and its 200 day moving average price is $534.99. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 3.96.

Mastercard (NYSE:MA - Get Free Report) last posted its earnings results on Thursday, July 30th. The credit services provider reported $5.04 earnings per share for the quarter, beating the consensus estimate of $4.77 by $0.27. The firm had revenue of $9.28 billion during the quarter, compared to the consensus estimate of $9.08 billion. Mastercard had a net margin of 46.34% and a return on equity of 239.99%. The firm's revenue for the quarter was up 14.1% on a year-over-year basis. During the same period last year, the firm posted $4.15 EPS. As a group, research analysts forecast that Mastercard Incorporated will post 19.91 earnings per share for the current fiscal year.

Mastercard Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, November 9th. Stockholders of record on Friday, October 9th will be given a $0.87 dividend. The ex-dividend date is Friday, October 9th. This represents a $3.48 annualized dividend and a dividend yield of 0.6%. Mastercard's dividend payout ratio is currently 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 electronic payments and provides technology that supports transactions conducted through credit, debit, prepaid and commercial payment products.

In addition to operating its payments network, Mastercard offers services in areas such as payment security, fraud prevention, authentication, cybersecurity, data and analytics, loyalty programs, digital identity and open banking.

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