Mastercard Incorporated (NYSE: MA): Stock That Needs Special Handling


BlackRock Fund Advisors recently announced the acquisition of new stake in Mastercard Incorporated (NYSE:MA). The institutional investor has increased its shareholding in the Financial company by 1.46% to 43.58 million shares with purchase of 0.63 million shares. This fresh investment now brings its stake to 4.39% valued currently at $13.45 billion. In addition, Capital Research & Management Co.. raised its holdings by 0.84 million to 15.95 million shares. And Northern Trust Investments, Inc.(.. has lifted its position by 1.96% or 0.22 million shares – to 11.21 million shares.

With over 4.41 million Mastercard Incorporated (MA) shares trading Tuesday and a closing price of $356.90 on the day, the dollar volume was approximately $1.57 billion. The shares have shown a positive weekly performance of 2.66% and its price on 09/01/20 lost nearly -0.36%. Currently, there are 1.00B common shares owned by the public and among those 876.23M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 38 analysts who have offered their price forecasts for MA have a consensus price objective of $352.39. The analysts have set the share’s price value over the next 12 months at a high of $415.00 and a low of $305.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Mastercard Incorporated stock is 1.90 for the next 12 months. The average price target is -1.65% below its last price level and a downside to the estimated low will see the stock lose -17.02% over that period. But an upside of 14.0% will see the stock hit the forecast high price target while mean target price for the stock is $354.00.

Insiders at the company have transacted a total of 211 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 80 of these insider trades were purchases, accounting for 690,732 shares. Insider sales of the common stock occurred on 131 occasions, with total insider shares sold totaling 2,888,612 shares.

The top 3 mutual fund holders in Mastercard Incorporated are Vanguard Total Stock Market Index, Vanguard 500 Index Fund, and American Funds Growth Fund of Ame. Vanguard Total Stock Market Index owns 25.4 million shares of the company’s stock, all valued at over $7.84 billion. The company sold 67894.0 shares recently to bring their total holdings to about 2.56% of the shares outstanding. Vanguard 500 Index Fund sold -0.12 million shares to see its total holdings shrink to 18.22 million shares valued at over $5.62 billion and representing 1.84% of the shares outstanding. American Funds Growth Fund of Ame bought 0.91 million shares to bring its total holdings to over 10.85 million shares at a value of $3.35 billion. American Funds Growth Fund of Ame now owns shares totaling to 1.09% of the shares outstanding.

Shares of Mastercard Incorporated (NYSE: MA) opened at $357.71, down -$0.48 from a prior closing price of $358.19. However, the script later closed the day at $356.90, down -0.36%. The company’s stock has a 5-day price change of 2.66% and 16.23% over the past three months. MA shares are trading 19.53% year to date (YTD), with the 12-month market performance up to 27.41% higher. It has a 12-month low price of $199.99 and touched a high of $367.25 over the same period. Currently, 4.41 million shares have been traded, compared to an average intraday trading volume of 3.77 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 6.17%, 12.90%, and 20.51% respectively.

Institutional ownership of Mastercard Incorporated (NYSE: MA) shares accounts for 77.50% of the company’s 1.00B shares outstanding. Mutual fund holders own 35.39%, while other institutional holders and individual stakeholders account for 41.53% and 11.43% respectively.

It has a market capitalization of $347.40B and a beta (3y monthly) value of 1.10. The stock’s trailing 12-month PE ratio is 49.57, while the earnings-per-share (ttm) stands at $7.20. The company has a PEG of 4.35 and a Quick Ratio of 2.00 with the debt-to-equity ratio at 0.00. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.27% over the week and 1.92% over the month.

Analysts forecast that Mastercard Incorporated (MA) will achieve an EPS of $1.65 for the current quarter, $1.85 for the next quarter and $8.71 for 2021. The lowest estimate earnings-per-share for the quarter is $1.53 while analysts give the company a high EPS estimate of $2.04. Comparatively, EPS for the current quarter was $2.15 a year ago. Earnings per share for the fiscal year are expected to increase by 43.30%, and 30.16% over the next financial year. EPS should shrink at an annualized rate of 11.39% over the next five years, compared to 20.70% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 38 brokerage firm advisors rate Mastercard Incorporated (MA) as a “Strong Buy” at a consensus score of 1.90. Specifically, 27 Wall Street analysts polled rate the stock as a buy, while 6 of the 38 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the MA, a number of firms have released research notes about the stock. Mizuho stated their Buy rating for the stock in a research note on August 27, 2020, with the firm’s price target at $400. Daiwa Securities coverage for the Mastercard Incorporated (MA) stock in a research note released on July 21, 2020 offered a Neutral rating with a price target of $314. Goldman was of a view on July 14, 2020 that the stock is Buy, while Oppenheimer gave the stock Perform rating on June 23, 2020, issuing a price target of. Oppenheimer on their part issued Outperform rating on June 01, 2020.


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