Mastercard (NYSE:MA) Stock Price Down 2.5% Following Analyst Downgrade

Mastercard Incorporated (NYSE:MA) was down 2.5% on Thursday after Freedom Broker downgraded the stock from a buy rating to a hold rating. Freedom Broker now has a $725.00 price target on the stock, up from their previous price target of $620.00. Mastercard traded as low as $653.85 and last traded at $655.6080. Approximately 4,935,498 shares traded hands during trading, an increase of 40% from the average session volume of 3,516,372 shares. The stock had previously closed at $672.68.

MA has been the subject of several other reports. TD Cowen increased their price target on shares of Mastercard from $667.00 to $726.00 and gave the company a “buy” rating in a research report on Friday, October 30th. Barclays raised their price target on shares of Mastercard from $660.00 to $700.00 and gave the company an “overweight” rating in a report on Friday, October 30th. BNP Paribas Exane lifted their price objective on shares of Mastercard from $680.00 to $713.00 and gave the stock an “outperform” rating in a research report on Friday, August 7th. JPMorgan Chase & Co. boosted their price objective on shares of Mastercard from $720.00 to $755.00 and gave the stock an “overweight” rating in a research note on Friday, October 30th. Finally, UBS Group reissued a “buy” rating and set a $725.00 target price on shares of Mastercard in a research report on Thursday. Two research analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $704.62.

Insider Activity at Mastercard

In other Mastercard news, Director Julius Genachowski sold 371 shares of the stock in a transaction dated Friday, October 9th. The stock was sold at an average price of $585.01, for a total value of $217,038.71. Following the completion of the sale, the director directly owned 8,607 shares in the company, valued at approximately $5,035,181.07. This trade represents a 4.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Sachin Mehra sold 7,444 shares of the stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $577.13, for a total value of $4,296,155.72. Following the completion of the sale, the insider owned 40,916 shares of the company’s stock, valued at approximately $23,613,851.08. This trade represents a 15.39% 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 25,403 shares of company stock valued at $15,428,736 in the last ninety days. Corporate insiders own 0.09% of the company’s stock.

Mastercard News Roundup

Here are the key news stories impacting Mastercard this week:

• Positive Sentiment: Q3 results beat expectations: revenue rose 14% year over year to $9.81 billion and adjusted EPS increased 21.2%. Services revenue grew 19%, although higher incentives were flagged as a concern. Mastercard’s 19% Services Growth Steals the Q3 Show: Buy or Hold MA?
• Positive Sentiment: Truist raised its price target to $735 and maintained a Buy rating, signaling potential upside in its view. Truist Financial rating information
• Negative Sentiment: Freedom Broker downgraded MA from Buy to Hold, despite lifting its target to $725. The mixed call may temper enthusiasm after the stock’s recent rally. Freedom Broker rating information
• Negative Sentiment: Valuation is a key risk: coverage notes the recent rally has outpaced changes in earnings estimates, leaving less room for disappointment. Rising incentives could also weigh on margins. Mastercard Stock Rose 22% in a Month. Here’s What Its Price Now Assumes
• Negative Sentiment: Visa and Mastercard face additional collective claims in the UK over card fees, adding potential legal and financial uncertainty. Visa and Mastercard face additional £5bn collective claims over card fees
• Neutral Sentiment: The CFO sold about $2.77 million of MA shares. The sale may attract attention, but the report provides no context on its purpose. Mastercard CFO stock sale

Hedge Funds Weigh In On Mastercard

Hedge funds and other institutional investors have recently modified their holdings of the stock. MSH Capital Advisors LLC lifted its stake in shares of Mastercard by 3.8% during the third quarter. MSH Capital Advisors LLC now owns 2,038 shares of the credit services provider’s stock worth $1,124,000 after buying an additional 75 shares during the period. Cornerstone Advisory LLC increased its position in shares of Mastercard by 0.7% in the 3rd quarter. Cornerstone Advisory LLC now owns 10,349 shares of the credit services provider’s stock valued at $5,707,000 after acquiring an additional 77 shares during the period. Addison Advisors LLC raised its stake in Mastercard by 18.1% in the 3rd quarter. Addison Advisors LLC now owns 332 shares of the credit services provider’s stock worth $183,000 after acquiring an additional 51 shares during the last quarter. Bernicke Wealth Management Ltd. purchased a new position in Mastercard in the 3rd quarter worth $956,000. Finally, Channel Wealth LLC raised its stake in Mastercard by 5.9% in the 3rd quarter. Channel Wealth LLC now owns 541 shares of the credit services provider’s stock worth $298,000 after acquiring an additional 30 shares during the last quarter. 97.28% of the stock is owned by hedge funds and other institutional investors.

Mastercard Trading Down 0.4%

The stock has a 50-day simple moving average of $593.15 and a 200 day simple moving average of $539.12. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 3.29. The company has a market cap of $572.43 billion, a price-to-earnings ratio of 34.18, a PEG ratio of 1.86 and a beta of 0.78.

Mastercard (NYSE:MA) last posted its quarterly earnings results on Thursday, October 29th. The credit services provider reported $5.31 earnings per share for the quarter, beating the consensus estimate of $5.17 by $0.14. Mastercard had a return on equity of 260.86% and a net margin of 46.73%. The business had revenue of $9.81 billion for the quarter, compared to the consensus estimate of $9.66 billion. During the same quarter in the previous year, the business earned $4.38 EPS. The company’s quarterly revenue was up 14.0% compared to the same quarter last year. As a group, equities research analysts predict that Mastercard Incorporated will post 20.00 EPS for the current fiscal year.

Mastercard Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, November 9th. Investors 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 dividend on an annualized basis and a yield of 0.5%. Mastercard’s dividend payout ratio is currently 18.20%.

About Mastercard

Mastercard Incorporated is a global payments technology company that operates a network connecting consumers, merchants, financial institutions, businesses and governments. Its network supports electronic payments, including transactions made with Mastercard-branded credit, debit and prepaid cards, as well as digital payment methods.

The company provides technology for authorizing, clearing and settling transactions. It also offers services related to cybersecurity, identity verification, data analytics, fraud prevention and payment consulting.