MasterCard Inc. (MA) Lowered to Hold at Zacks Investment Research
According to Zacks, “MasterCard shares have outperformed Zacks categorized Financial Transaction Services industry over the last three months. The company remains well positioned for growth given its expansion & digital initiatives. Also, gradual shift to electronic payments from paper-based forms should drive revenue growth. The company’s third-quarter 2016 earnings per share beat the Zacks Consensus Estimate. MasterCard’s product-diversification initiatives augur well for the long term. The proposed acquisition of major stake in VocaLink will strengthen its electronic payment capabilities. Increased cross-border volumes, improved pricing, growth of processed transactions and a vast global business continue to drive growth. However, the company is challenged with soft investment results, escalating costs, a challenging forex environment as well as litigations.”
Other analysts also recently issued research reports about the company. Deutsche Bank AG reissued a buy rating on shares of MasterCard in a report on Monday, October 31st. Robert W. Baird reissued an outperform rating and issued a $124.00 price target (up previously from $120.00) on shares of MasterCard in a report on Monday, October 31st. Guggenheim downgraded MasterCard from a buy rating to a neutral rating in a report on Tuesday, November 1st. Vetr downgraded MasterCard from a buy rating to a hold rating and set a $110.07 price target on the stock. in a report on Monday, October 31st. Finally, Royal Bank Of Canada raised their price target on MasterCard from $112.00 to $115.00 and gave the stock an outperform rating in a report on Monday, October 31st. Eight analysts have rated the stock with a hold rating and twenty-two have issued a buy rating to the company. The stock presently has a consensus rating of Buy and a consensus target price of $110.90.
MasterCard (NYSE:MA) opened at 105.73 on Friday. MasterCard has a 12-month low of $78.52 and a 12-month high of $108.93. The company has a market capitalization of $115.20 billion, a PE ratio of 29.23 and a beta of 1.22. The stock has a 50 day moving average of $103.67 and a 200-day moving average of $97.75.
MasterCard (NYSE:MA) last issued its quarterly earnings data on Friday, October 28th. The company reported $1.08 earnings per share for the quarter, beating analysts’ consensus estimates of $0.98 by $0.10. MasterCard had a return on equity of 69.11% and a net margin of 38.11%. The firm earned $2.88 billion during the quarter, compared to analyst estimates of $2.74 billion. During the same quarter last year, the firm earned $0.91 EPS. MasterCard’s quarterly revenue was up 14.6% on a year-over-year basis. Equities analysts expect that MasterCard will post $3.75 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Wednesday, November 9th. Shareholders of record on Monday, October 10th were issued a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a yield of 0.72%. The ex-dividend date was Wednesday, October 5th. MasterCard’s dividend payout ratio is 20.99%.
In other news, major shareholder Foundation Mastercard sold 72,624 shares of the stock in a transaction on Wednesday, October 26th. The stock was sold at an average price of $103.03, for a total value of $7,482,450.72. Following the transaction, the insider now owns 114,592,747 shares of the company’s stock, valued at approximately $11,806,490,723.41. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Richard Haythornthwaite sold 5,000 shares of the stock in a transaction on Tuesday, October 4th. The shares were sold at an average price of $101.78, for a total value of $508,900.00. Following the completion of the transaction, the director now directly owns 52,423 shares in the company, valued at approximately $5,335,612.94. The disclosure for this sale can be found here. Company insiders own 3.14% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Seven Bridges Advisors LLC bought a new position in MasterCard during the second quarter worth $109,000. Lowe fs LLC increased its position in MasterCard by 9.8% in the third quarter. Lowe fs LLC now owns 1,120 shares of the company’s stock worth $114,000 after buying an additional 100 shares during the period. Feltz Wealth PLAN Inc. bought a new position in MasterCard during the second quarter worth $121,000. Hanson McClain Inc. increased its position in MasterCard by 11.0% in the second quarter. Hanson McClain Inc. now owns 1,409 shares of the company’s stock worth $124,000 after buying an additional 140 shares during the period. Finally, Thompson Siegel & Walmsley LLC bought a new position in MasterCard during the second quarter worth $125,000. 74.44% of the stock is currently owned by institutional investors.
MasterCard Incorporated is a technology company that connects consumers, financial institutions, merchants, governments and businesses across the world. The Company operates through payment solutions segment. The Company allows user to make payments by a range of payment solutions and services using various brands, which include MasterCard, Maestro and Cirrus.
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