Charles Schwab Investment Management Inc. has increased its stake in Mastercard Incorporated (NYSE:MA) by 1.3% during the second quarter, now owning 5,465,299 shares valued at approximately $3.07 billion. The firm acquired an additional 68,152 shares, reflecting confidence in Mastercard’s market position as institutional investors continue to dominate the stock.
A variety of other large investors have also adjusted their positions in Mastercard. This includes LGT Financial Advisors LLC, which entered a new position worth $25,000, and Family Legacy Financial Solutions LLC, which added a stake valued at around $26,000. Flaharty Asset Management LLC and Keystone Global Partners LLC also acquired new stakes earlier this year, further indicating growing interest in the credit services provider. Notably, institutional investors and hedge funds collectively hold 97.28% of Mastercard’s stock.
Analysts Show Positive Outlook for Mastercard
Recent analyst reports have reinforced a positive outlook for Mastercard. Royal Bank of Canada raised its price target from $645.00 to $654.00 while maintaining a “buy” rating on October 31, 2023. Additionally, Tigress Financial increased its target price from $685.00 to $730.00, classifying the stock as a “strong buy.” Other firms, including UBS Group and The Goldman Sachs Group, also issued buy ratings, with price objectives of $700.00 and $713.00, respectively.
Currently, four analysts have issued a “Strong Buy” rating on Mastercard, while twenty-two have rated it as a “Buy” and three have maintained a “Hold” rating. According to MarketBeat.com, the consensus target price stands at $652.50, reflecting broad optimism among market experts.
Mastercard’s Financial Performance and Dividends
On October 30, 2023, Mastercard reported strong quarterly earnings, with an earnings per share (EPS) of $4.38, surpassing analysts’ expectations of $4.31 by $0.07. The company also recorded revenue of $8.60 billion, exceeding the forecast of $8.53 billion. This was a significant year-over-year increase of 16.7%, compared to an EPS of $3.89 during the same quarter last year.
Mastercard also announced a quarterly dividend of $0.76, which was paid on November 7, 2023. This dividend represents an annualized amount of $3.04 and a yield of 0.6%. The ex-dividend date was October 9, and the company maintains a payout ratio of 19.44%.
In related news, Chief Financial Officer J. Mehra Sachin sold 17,263 shares on September 2, 2023, at an average price of $591.00, totaling approximately $10.2 million. Following this transaction, Sachin holds 31,234 shares valued at about $18.46 million, reflecting a 35.60% decrease in his position.
Mastercard Incorporated continues to demonstrate robust performance, offering various financial products and services both domestically and internationally. The company focuses on transaction processing and provides integrated solutions for a diverse range of clients, including businesses, governments, and financial institutions. As Mastercard navigates the evolving financial landscape, investor interest and analyst optimism further underscore its potential for growth.
