Mastercard (NYSE:MA) has been upgraded from a hold rating to a buy rating by Wall Street Zen, according to a research report released on Saturday. This upgrade reflects a growing confidence in the company’s performance and market prospects, as several other investment firms have also adjusted their ratings recently.
Analyst Upgrades and Price Targets
On July 17, Deutsche Bank Aktiengesellschaft initiated coverage of Mastercard with a “buy” rating and set a price target of $650.00. Just days earlier, on July 14, Seaport Res Ptn elevated their rating from “hold” to “strong-buy.” Further adding to the momentum, Truist Financial revised their target price from $640.00 to $612.00 while maintaining a “buy” rating on July 17.
On August 1, Morgan Stanley increased their target price from $639.00 to $661.00 and assigned an “overweight” rating to the stock. The same day, The Goldman Sachs Group reiterated a “buy” rating. Currently, Mastercard holds an average rating of “buy” from analysts, with a consensus price target of $634.04, according to data from MarketBeat.
Strong Quarterly Performance
Mastercard recently reported its quarterly earnings on July 31, revealing earnings per share of $4.15, surpassing the consensus estimate of $4.05 by $0.10. The company’s revenue reached $8.13 billion, exceeding the anticipated $7.95 billion. This performance reflects a robust return on equity of 200.01% and a net margin of 44.93%.
Furthermore, Mastercard’s quarterly revenue marked a 16.8% increase compared to the same period last year, when it reported earnings of $3.50 per share. Analysts predict an average earnings per share of 15.91 for the current fiscal year.
Dividend Announcement and Insider Activity
The company has declared a quarterly dividend of $0.76, set to be paid on November 7, 2024, to investors on record as of October 9. This dividend amounts to an annualized yield of 0.5%, with a dividend payout ratio of 20.50%.
In related news, CFO J. Mehra Sachin sold 17,263 shares of Mastercard on September 2 at an average price of $591.00, totaling approximately $10,202,433.00. After this transaction, Sachin retains 31,234 shares, valued at about $18,459,294, reflecting a 35.60% decrease in ownership.
Institutional Investor Insights
Recent movements among institutional investors indicate a growing interest in Mastercard. Notable acquisitions include LGT Financial Advisors LLC, which purchased a stake worth $25,000, and Family Legacy Financial Solutions LLC, which acquired shares valued at $26,000. Other firms, such as Flaharty Asset Management LLC and Keystone Global Partners LLC, have also made new investments in the company.
Currently, institutional investors and hedge funds hold 97.28% of Mastercard’s stock, underscoring strong institutional confidence in the company’s future.
Mastercard Incorporated provides transaction processing and payment-related services globally, catering to a wide range of clients including financial institutions, merchants, and governments. As the company continues to expand its offerings and enhance its market position, analysts will be closely monitoring its performance and strategic developments.
