Royal London Asset Management Ltd. Decreases Stock Holdings in Mastercard Incorporated $MA

Key Points

• Royal London Asset Management reduced its Mastercard stake by 8% in the second quarter, selling 33,449 shares and retaining 386,414 shares valued at approximately $198.5 million. Institutional investors collectively own 97.28% of the company.
• Mastercard reported stronger-than-expected quarterly results, with EPS of $5.04 and revenue of $9.28 billion, representing 14.1% year-over-year revenue growth.
• Wall Street remains bullish, with Mastercard holding a consensus “Buy” rating and an average price target of $664.71 versus a share price of about $595.51. The company also pays a quarterly dividend of $0.87 per share, yielding roughly 0.6%.

Royal London Asset Management Ltd. lessened its stake in Mastercard Incorporated (NYSE:MA - Free Report) by 8.0% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 386,414 shares of the credit services provider's stock after selling 33,449 shares during the period. Royal London Asset Management Ltd.'s holdings in Mastercard were worth $198,462,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Robinswood Financial LLC bought a new stake in shares of Mastercard in the 1st quarter valued at about $25,000. E Fund Management Hong Kong Co. Ltd. grew its position in shares of Mastercard by 820.0% in the 4th quarter. E Fund Management Hong Kong Co. Ltd. now owns 46 shares of the credit services provider's stock worth $26,000 after buying an additional 41 shares during the last quarter. Strive Financial Group LLC purchased a new position in shares of Mastercard in the 4th quarter worth approximately $27,000. Hyposwiss Advisors SA bought a new position in shares of Mastercard during the 4th quarter worth approximately $29,000. Finally, First Pacific Financial raised its stake in shares of Mastercard by 113.8% during the 1st quarter. First Pacific Financial now owns 62 shares of the credit services provider's stock worth $31,000 after acquiring an additional 33 shares in the last quarter. Hedge funds and other institutional investors own 97.28% of the company's stock.

Key Mastercard News

Here are the key news stories impacting Mastercard this week:

• Positive Sentiment: Mastercard and QNB Group processed Syria’s first international card transaction in more than 15 years. The milestone marks the reopening and modernization of Syria’s international payments infrastructure following the lifting of certain U.S. restrictions. Although the near-term financial contribution is likely to be small, the development creates a potential new market and demonstrates Mastercard’s ability to support payments expansion. Syria marks first international card transaction in more than 15 years with Mastercard and QNB Group
• Positive Sentiment: Analysts have given Mastercard a consensus “Buy” rating. Continued Wall Street support adds to the bullish backdrop, though the rating itself may already be reflected in the share price. Mastercard Incorporated Given Consensus Rating of Buy by Analysts
• Positive Sentiment: Pershing Square founder Bill Ackman added Mastercard to the hedge fund’s portfolio. The purchase may improve investor sentiment by signaling confidence from a prominent long-term investor, although it does not change Mastercard’s operating outlook. Bill Ackman Just Made His Biggest Portfolio Overhaul in Years
• Positive Sentiment: A partnership with Klook targets growing travel and experiences spending across Asia Pacific. Mastercard cardholder benefits and additional travel-related payment touchpoints could support transaction volume in a high-growth region. Klook and Mastercard collaborate to enhance travelers’ experiences across Asia Pacific
• Neutral Sentiment: Mastercard will participate in the Goldman Sachs Communacopia + Technology Conference on September 10, where CFO Ling Hai is scheduled to speak. Investors may look for updates on growth, margins and capital allocation, but no new financial information was provided. Mastercard to Participate in Upcoming Investor Conference
• Neutral Sentiment: Mastercard’s name appears as a supporter of an XRPL/Ripple hackathon, but reports caution that the sponsorship does not represent a new cryptocurrency partnership or major product launch. Mastercard’s Name Is on the Ripple Hackathon, But Don’t Get Ahead of Yourself

Mastercard Stock Up 0.6%

Shares of MA stock opened at $595.51 on Friday. Mastercard Incorporated has a fifty-two week low of $464.52 and a fifty-two week high of $601.62. The firm has a market capitalization of $521.67 billion, a PE ratio of 32.76, a P/E/G ratio of 1.78 and a beta of 0.72. The company has a debt-to-equity ratio of 3.96, a quick ratio of 1.06 and a current ratio of 1.06. The stock's 50-day simple moving average is $549.15 and its 200-day simple moving average is $519.62.

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. Equities analysts expect that Mastercard Incorporated will post 19.86 earnings per share for the current year.

Mastercard Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Thursday, July 9th were issued a dividend of $0.87 per share. This represents a $3.48 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend was Thursday, July 9th. Mastercard's dividend payout ratio (DPR) is 19.14%.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the stock. Dbs Bank upgraded shares of Mastercard to a "moderate buy" rating in a research note on Friday, August 21st. Wolfe Research upped their price target on Mastercard from $680.00 to $740.00 and gave the stock an "outperform" rating in a research report on Tuesday. UBS Group increased their price objective on Mastercard from $640.00 to $670.00 and gave the company a "buy" rating in a report on Friday, July 31st. Susquehanna lowered their price objective on Mastercard from $670.00 to $665.00 and set a "positive" rating for the company in a research report on Friday, May 1st. Finally, Barclays boosted their target price on Mastercard from $640.00 to $660.00 and gave the stock an "overweight" rating in a research note on Friday, July 31st. Five equities research analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $664.71.

Insider Activity

In related news, insider J. Mehra Sachin 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 Pistecchia 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 have sold a total of 71,357 shares of company stock valued at $40,637,262 over the last quarter. Insiders own 0.09% of the company's stock.

Mastercard Company Profile

Mastercard Incorporated is a global payments technology company that operates a network connecting consumers, financial institutions, merchants, governments and businesses in more than 200 countries and territories. The company facilitates electronic payments and transaction processing for credit, debit and prepaid card products carrying the Mastercard brand, while also providing a range of payment-related services to issuers, acquirers and merchants. Its technology and network enable authorization, clearing and settlement of payments and support a broad set of use cases including point-of-sale, e-commerce and mobile payments.

Beyond core transaction processing, Mastercard offers a suite of value-added services such as fraud and risk management, identity and authentication tools, tokenization and digital wallet support, cross-border and commercial payment solutions, and data analytics and consulting services for merchants and financial partners.

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