Mastercard Insider Sells Shares

In a recent transaction, Edward Grunde Mclaughlin, an insider at Mastercard Incorporated (NYSE:MA), sold 7,132 shares of the company's stock on Wednesday, March 19th. The shares were sold at an average price of $534.68, amounting to a total value of $3,813,337.76. After this sale, Mclaughlin retains ownership of 34,524 shares in Mastercard, which are now valued at approximately $18,459,292.32. This transaction reflects a 17.12% reduction in their total ownership of the company's stock. The sale was officially reported in a filing with the Securities and Exchange Commission (SEC), which can be viewed on their website.

Mastercard's Stock Performance

On Thursday, during midday trading, Mastercard's stock price dipped slightly, exchanging hands at $536.08. The trading volume for the day was 2,585,158 shares, exceeding the average volume of 2,362,490. Mastercard's market capitalization stands at $488.74 billion, with a price-to-earnings (P/E) ratio of 38.59 and a price-to-earnings-growth (PEG) ratio of 2.37. The stock has a beta value of 1.10 and a 50-day moving average of $546.56, alongside a 200-day moving average of $523.92. Notably, Mastercard has experienced a one-year low of $428.86 and a one-year high of $582.23.

Recent Earnings and Future Outlook

On January 30th, Mastercard released its quarterly earnings data revealing earnings per share (EPS) of $3.82 for the quarter, surpassing analysts' expectations by $0.11. The company has impressively achieved a return on equity of 188.47% and a net margin of 45.71%. Analysts forecast that Mastercard will record an EPS of 15.91 for the current fiscal year.

Share Repurchase Plan

In a strategic move, Mastercard's Board of Directors authorized a share repurchase plan on December 17th, allowing the company to buy back up to $12.00 billion in shares. This plan enables the buyback of approximately 2.5% of its outstanding stock through open market purchases—a typical sign that the company’s executives deem its stock price to be undervalued.

Dividend Declaration

Recently, Mastercard declared a quarterly dividend to be distributed on May 9th. Shareholders on record as of April 9th will receive a dividend of $0.76 per share. This marks an annualized dividend totaling $3.04, resulting in a yield of 0.57%. The current dividend payout ratio for Mastercard stands at 21.89%.

Price Targets from Analysts

A number of brokerage firms have recently revised their price targets for Mastercard. Citigroup raised their target from $584.00 to $650.00, issuing a "buy" rating in the process. Similarly, Wells Fargo increased their target from $585.00 to $625.00, also recommending an "overweight" rating. Jefferies Financial Group adjusted their target from $590.00 to $610.00. Royal Bank of Canada also lifted their target from $572.00 to $650.00, while Monness Crespi & Hardt upgraded the stock from a "neutral" to a "buy" rating, establishing a price goal of $640.00. Currently, four analysts rate the stock as a hold, twenty-four consider it a buy, and two have issued a strong buy rating, leading to an average rating of "Moderate Buy" and a consensus target price of $606.11.

Institutional Investor Activity

Several institutional investors have recently adjusted their holdings in Mastercard. For instance, Addison Advisors LLC increased its position in Mastercard by 3.8% during the fourth quarter, now owning 493 shares valued at approximately $260,000. Other firms, like Capital Investment Advisory Services LLC, Capital Investment Services of America Inc., Augustine Asset Management Inc., and Richard W. Paul & Associates LLC, have also increased their stakes in the company. Currently, around 97.28% of Mastercard's stock is held by hedge funds and institutional investors.

Company Overview

Mastercard Incorporated is a technology company that provides various transaction processing and payment-related services both in the United States and internationally. The company offers integrated products and value-added services for account holders, merchants, financial institutions, businesses, and government entities. Their offerings include payment solutions, credits to defer payments, and various other financial products and services.

Mastercard, Insider, Shares