TD Cowen Issues Pessimistic Forecast for Mastercard (NYSE:MA) Stock Price

Key Points

• TD Cowen lowered its price target on Mastercard from $671 to $664, while maintaining a buy rating. The new target still implies about 22% upside from the prior close.
• Analyst sentiment remains broadly positive despite the cut, with MarketBeat showing a consensus buy rating and an average price target of $654.31 across covering analysts.
• Mastercard’s latest quarterly results beat expectations, posting EPS of $4.60 versus $4.41 expected and revenue of $8.40 billion versus $8.26 billion expected. Revenue rose 15.8% year over year, underscoring continued operational strength.

Mastercard (NYSE:MA - Get Free Report) had its price target decreased by analysts at TD Cowen from $671.00 to $664.00 in a research report issued on Tuesday,Benzinga reports. The firm currently has a "buy" rating on the credit services provider's stock. TD Cowen's target price would suggest a potential upside of 22.48% from the company's previous close.

MA has been the topic of several other reports. Citigroup decreased their target price on shares of Mastercard from $735.00 to $675.00 and set a "buy" rating on the stock in a research note on Tuesday, April 14th. Royal Bank Of Canada reduced their target price on Mastercard from $656.00 to $629.00 and set an "outperform" rating on the stock in a report on Friday, May 1st. Truist Financial reduced their target price on shares of Mastercard from $590.00 to $561.00 and set a "buy" rating on the stock in a research report on Tuesday, May 12th. Evercore reissued a "negative" rating on shares of Mastercard in a research note on Tuesday, March 17th. Finally, Tigress Financial upped their price objective on shares of Mastercard from $730.00 to $735.00 and gave the stock a "strong-buy" rating in a report on Friday, March 13th. Six equities research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Mastercard presently has a consensus rating of "Buy" and an average price target of $654.31.

Mastercard Price Performance

Shares of NYSE MA traded up $9.05 during mid-day trading on Tuesday, reaching $542.15. 832,374 shares of the company were exchanged, compared to its average volume of 3,853,201. Mastercard has a 52 week low of $464.52 and a 52 week high of $601.77. The company's 50 day moving average price is $497.92 and its 200 day moving average price is $518.61. The stock has a market capitalization of $479.03 billion, a PE ratio of 31.38, a PEG ratio of 1.68 and a beta of 0.73. The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 2.56.

Mastercard (NYSE:MA - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The credit services provider reported $4.60 earnings per share for the quarter, beating analysts' consensus estimates of $4.41 by $0.19. The company had revenue of $8.40 billion for the quarter, compared to analysts' expectations of $8.26 billion. Mastercard had a return on equity of 212.96% and a net margin of 45.88%.Mastercard's revenue for the quarter was up 15.8% compared to the same quarter last year. During the same period last year, the firm posted $3.73 EPS. Sell-side analysts forecast that Mastercard will post 19.61 earnings per share for the current fiscal year.

Insider Transactions at Mastercard

In related news, insider Raj Seshadri sold 4,828 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $525.00, for a total transaction of $2,534,700.00. Following the sale, the insider directly owned 16,429 shares of the company's stock, valued at approximately $8,625,225. This represents a 22.71% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.09% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. CGN Advisors LLC lifted its holdings in shares of Mastercard by 4.2% during the 2nd quarter. CGN Advisors LLC now owns 8,335 shares of the credit services provider's stock valued at $4,281,000 after buying an additional 334 shares during the period. CoreCap Advisors LLC boosted its holdings in shares of Mastercard by 13.4% during the 2nd quarter. CoreCap Advisors LLC now owns 3,407 shares of the credit services provider's stock valued at $1,750,000 after purchasing an additional 402 shares during the last quarter. Pacific Excel Wealth Advisors Inc. purchased a new stake in Mastercard during the second quarter valued at $698,000. Howard Financial Services LTD. increased its holdings in shares of Mastercard by 2.7% in the 2nd quarter. Howard Financial Services LTD. now owns 2,637 shares of the credit services provider's stock worth $1,354,000 after buying an additional 70 shares during the last quarter. Finally, jvl associates llc lifted its holdings in shares of Mastercard by 14.4% in the 2nd quarter. jvl associates llc now owns 1,713 shares of the credit services provider's stock valued at $880,000 after acquiring an additional 215 shares during the last quarter. 97.28% of the stock is owned by hedge funds and other institutional investors.

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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