Vanguard Group Inc. Has $42.50 Billion Position in Mastercard Incorporated (NYSE:MA)

Key Points

• Vanguard Group Inc. increased its stake in Mastercard by 0.5%, acquiring an additional 365,537 shares, bringing its total ownership to about 8.51% of the company, valued at over $42 billion.
• Mastercard's stock has received favorable ratings from analysts, with price targets ranging from $615.33 to $670.00, and an overall average rating of "Moderate Buy."
• The company recently announced a quarterly dividend of $0.76 per share, equating to a 0.5% yield, set to be paid to shareholders on August 8th.

Vanguard Group Inc. raised its stake in Mastercard Incorporated (NYSE:MA - Free Report) by 0.5% during the first quarter, according to its most recent disclosure with the SEC. The fund owned 77,544,675 shares of the credit services provider's stock after buying an additional 365,537 shares during the quarter. Mastercard makes up about 0.8% of Vanguard Group Inc.'s investment portfolio, making the stock its 16th largest holding. Vanguard Group Inc. owned about 8.51% of Mastercard worth $42,503,787,000 at the end of the most recent reporting period.

A number of other hedge funds also recently added to or reduced their stakes in the stock. Measured Risk Portfolios Inc. bought a new stake in shares of Mastercard during the fourth quarter valued at about $31,000. Navigoe LLC bought a new stake in shares of Mastercard during the fourth quarter valued at about $33,000. 10Elms LLP bought a new stake in shares of Mastercard during the fourth quarter valued at about $33,000. Hughes Financial Services LLC bought a new stake in shares of Mastercard during the first quarter valued at about $34,000. Finally, Mpwm Advisory Solutions LLC bought a new stake in shares of Mastercard during the fourth quarter valued at about $36,000. 97.28% of the stock is currently owned by institutional investors.

Insider Transactions at Mastercard

In related news, insider Craig Vosburg sold 9,428 shares of the business's stock in a transaction that occurred on Friday, June 20th. The stock was sold at an average price of $353.05, for a total value of $3,328,555.40. Following the completion of the sale, the insider owned 58,451 shares of the company's stock, valued at approximately $20,636,125.55. The trade was a 13.89% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Raj Seshadri sold 1,100 shares of the business's stock in a transaction that occurred on Friday, June 27th. The shares were sold at an average price of $546.77, for a total value of $601,447.00. Following the completion of the sale, the insider directly owned 12,921 shares of the company's stock, 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. In the last 90 days, insiders sold 38,603 shares of company stock worth $20,265,667. 0.09% of the stock is owned by corporate insiders.

Mastercard Stock Up 2.4%

NYSE:MA traded up $13.20 on Friday, hitting $574.42. 2,907,568 shares of the company's stock traded hands, compared to its average volume of 2,618,541. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 2.41. Mastercard Incorporated has a 1 year low of $453.46 and a 1 year high of $594.71. The firm has a 50-day moving average price of $563.90 and a 200-day moving average price of $553.24. The company has a market cap of $523.70 billion, a PE ratio of 38.73, a price-to-earnings-growth ratio of 2.30 and a beta of 1.03.

Mastercard (NYSE:MA - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The credit services provider reported $4.15 EPS for the quarter, beating the consensus estimate of $4.05 by $0.10. The business had revenue of $8.13 billion during the quarter, compared to analysts' expectations of $7.95 billion. Mastercard had a return on equity of 200.01% and a net margin of 44.93%. The firm's quarterly revenue was up 16.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $3.50 EPS. Equities analysts anticipate that Mastercard Incorporated will post 15.91 EPS for the current fiscal year.

Mastercard Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 8th. Investors of record on Wednesday, July 9th will be paid a $0.76 dividend. The ex-dividend date of this dividend is Wednesday, July 9th. This represents a $3.04 annualized dividend and a dividend yield of 0.5%. Mastercard's payout ratio is presently 20.50%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on MA shares. Jefferies Financial Group restated a "buy" rating on shares of Mastercard in a research note on Friday, June 6th. Morgan Stanley lifted their target price on Mastercard from $639.00 to $661.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Seaport Res Ptn raised Mastercard from a "hold" rating to a "strong-buy" rating in a report on Monday, July 14th. UBS Group lifted their target price on Mastercard from $660.00 to $670.00 and gave the stock a "buy" rating in a report on Tuesday, June 3rd. Finally, Royal Bank Of Canada lifted their target price on Mastercard from $650.00 to $656.00 and gave the stock an "outperform" rating in a report on Friday, August 1st. Five analysts have rated the stock with a hold rating, twenty-five have given a buy rating and two have issued a strong buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $615.33.

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.