Ninety One SA PTY Ltd has significantly increased its ownership in Mastercard Incorporated, raising its stake by an impressive 32.8% during the third quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), the institutional investor now holds 19,312 shares of the credit services provider’s stock after acquiring an additional 4,770 shares during the quarter. This investment represents approximately 1.6% of Ninety One SA’s total portfolio, making Mastercard its 20th largest holding, valued at around $10,972,000.
Other institutional investors have also been active in adjusting their positions in Mastercard. For instance, Ninety One UK Ltd increased its stake by 2.9%, bringing its total shares to 1,211,514, valued at $689,121,000 following the purchase of 34,053 shares. Similarly, Mather Group LLC raised its stake by 1.6%, acquiring 188 additional shares to reach 11,688 shares, valued at $6,648,000. Pinnacle Wealth Management Advisory Group LLC and Davidson Trust Co. also increased their holdings in Mastercard by 2.7% and 9.6%, respectively. Overall, institutional investors and hedge funds collectively own 97.28% of Mastercard’s stock.
Analysts Issue Positive Insights on Mastercard
Recent reports from several financial research firms indicate a bullish outlook for Mastercard. HSBC Global Research upgraded Mastercard’s shares from a “hold” to a “strong-buy” rating on December 8, 2023. Citigroup similarly raised its rating to “strong-buy” on October 23, 2023. The Goldman Sachs Group reiterated a “buy” rating with a price objective of $713.00, while UBS Group increased its target from $690.00 to $700.00. Wells Fargo & Company adjusted its target price from $669.00 to $660.00, maintaining an “overweight” rating. Currently, five analysts have rated the stock as a Strong Buy, while 21 have assigned it a Buy rating. The consensus rating stands at “Buy” with an average price target of $657.48.
Mastercard’s Latest Stock Performance and Financials
On October 30, 2023, Mastercard’s stock opened at $570.96, reflecting a 1.1% decrease. The stock has fluctuated between a 52-week low of $465.59 and a high of $601.77. As of now, Mastercard has a market capitalization of $512.72 billion, a price-to-earnings ratio of 36.51, and a price-to-earnings-growth ratio of 2.27.
Mastercard recently reported its quarterly earnings, revealing earnings per share of $4.38, surpassing analysts’ expectations of $4.31 by $0.07. The company’s revenue for the quarter was $8.60 billion, exceeding the forecast of $8.53 billion. Year-over-year, Mastercard’s revenue increased by 16.7%, up from $3.89 earnings per share in the same period last year.
Additionally, Mastercard announced a quarterly dividend of $0.87 per share, payable on February 9, 2024, to investors of record as of January 9, 2024. This reflects an annualized dividend of $3.48 and a yield of 0.6%, marking an increase from the previous quarterly dividend of $0.76. The company’s payout ratio is currently 19.44%.
Mastercard Incorporated operates as a global payments technology company, connecting consumers, financial institutions, merchants, governments, and businesses in over 200 countries and territories. The firm facilitates electronic payments and transaction processing for various card products, while also providing a range of payment-related services, including fraud management and data analytics.
